Term Paper: Silverjet’s Segmentation Strategy

By | April 24, 2012

Sample Term Paper

Robust would be the last word to describe Silverjet’s segmentation strategy. Focused or concentrated would be better adjectives. I believe that Silverjet had chosen correctly, it could have implemented a differentiated market segmentation strategy, but competition in this field is tough and dominated by major carriers.

Almost all carriers are involved in this form of market segmentation, with a large number of carriers catering to the price sensitive segment. Thus the needs of price sensitive fliers are sufficiently catered to (Airlines Industry Profile 2009). High end customers at the opposite end of the spectrum had been deprived of the same focus by airline carriers. Silverjet could easily exploit this gap between demand and supply in this market segment. Directing business activities in catering to only this class of passengers could have allowed the company to improve its core competencies, employ specialized customer service representatives, and develop specific services that differentiate Silverjet from all other carriers. Marketing on exclusivity, offering first-class service considered exuberant for normal airline carriers, and developing a lucrative miles program for corporate frequent fliers would have, in the long run, lead to profitability at Silverjet.

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