Tiger Airways Essay Example for Free

tiger Airways EssayTiger airways have a few critical issues which could be solved. Tiger airways did not seem to have a very heavy relationship with their consumers. For one, despite the attempts to connect with the consumers through affectionate media sites like Facebook and Twitter, consumers were regularly complaining closely the participation on these sites. Instead of clarifying matters and executing a good customer relations strategy, Tiger deleted proscribe comments off their official Facebook page and remained mum for 72 hours after the grounding took place. Tiger also allowed an Australian television channel to air a program documenting all the negative and dismal areas of Tigers operations. All these actions only served to reduce consumer authorization and trust. With consumers being the driving force behind Tigers profitability, the companion should focus on pulping good leave and trust, and in light of the grounding, to also reassure them of their set of l ow cost and safety.The solution is to offer complimentary flights to affected consumers and make use of this opportunity to material body good relations with them. Tiger can also turn this into an opportunity for positive media coverage covering the companys sincerity in righting the wrongs. Encourage two-way communication between tiger and its stakeholders. prick being more proactive in communicating with consumers and anticipate their grievance. Come up with a dependant upon(p) communication strategy and how to deal with consumers to build goodwill and trust. Or they can improve the consumer hotline and reassure customers about their safety by hiring a third party to vouch for them (ingratiation strategy). Tiger airway is also liner issues with the investors. As soon as the grounding took place, Tigers SGX stock price plunged, showing a lack of confidence on the part of investors. Interesting to note was that share prices continued to plummet flush after tiger resumed its fl ights.This would not probably be be bring on air passage capacity was still low ascribable to consumer motions about the airlines safety. The only way investors confidence can be amend is by first straining the support of consumers because they are the ones fuelling tigers profitability. With a lack of consumer support, investor confidence will be equally weak as they would not see any growth prospects or returns from their investment. Hence, this bother can only be fixed over time and is dependent on tigers ability to convince consumers of safety of their flights.It has to work on building strategic credibility in the presbyopic run. In the meantime, tiger should provide a short-term solution to calm investors and convince them their investments will be worthwhile. Solution to this is that communicating to all stakeholders about what exactly tiger airways us trying to do to gain consumers confidence and increase transparency, whether regarding tigers financial losses or the real moderateness behind the grounding. Assure investors that Australia is a profitable region worth investing in and thank them for their homage to the company. Another solution is capitalized on SIAs reputation to gain investor confidence.Inform investors that SIA holds majority of the shares in tiger airways and they still have confidence that tiger airways will be able to get back on its feet soon. As CYS is victorious over as CEO, tiger can capitalise on his reputation by mentioning that the company will be in good hands given that CYS is from SIA and has experience leading a world class airline. Tiger airways should also focus on building consumer confidence and assume investor confidence will improve from there. In other words, maintain status quo and remain silent.Lastly, being a budget carrier, low fares of priority to Tiger. Just like wal-mart, this drive to attain lower and lower costs results in employee neglect. Pilots became overworked and underpaid, and employees w ere either offered redeployment to other bases or given redundancy packages during the period of the grounding. Some employees even menace legal action against the company when tiger did not make the payments required to them. Employees are no doubt an important group of stakeholders in any company, as can be seen from recent cases of worker strikes causation huge airlines such as Qantas to halt operations and experience significant losses. As company already in the red, anymore losses resulting from employee mistakes or strikes will not bode well for the future prospects of Tiger, particularly with it being a budget carrier. There is no other option for tiger but to build up their relationship with their employees.Possible solutions is to provide greater benefits to employees such as off-days for a flight persistent for a number of days, to prevent employees from being overworked and making unnecessary and costly mistakes. Increase employee welfare by providing channels for the m to air their grievances and implement a two-way communication system where their problems or difficulties can be sorted out. Apologising for their inconvenience and mistakes made in the handling of the situation and assure the employees of the steps the company is taking to clean up the crisis. Engage employees help to build up the reputation and trust of the company by first treating them better and allowing them more channels to communicate with management. Tiger airways are a low-cost airline whose corporate strategy is centred on cost-cutting measures.The grounding, however, serves as a reminder of the importance of the airlines safety. Tigers flawed corporate strategy could also be seen when they failed to take CASAs show cause notice in May seriously, leading to the eventual grounding of their entire fleet. Although it can be express that tigers reputation is derived from their low fares, it is the basic prerequisite for airlines to ensure safe operations. This is where the y differ from Wal-mart, which has a similar Everyday Low Price strategy. Improving their strategy would serve to improve tigers reputation in the long run. Solution to it is to increased transparency of tigers operations. Update stakeholders regularly with a list of actions that tiger airways will undertake in the following months to improve safety, and also mend a crisis communication plan this is updated regularly.Tiger airways should work with CASA to come up with safety regulation guidelines that support tigers low-cost strategy. Of all the critical issues being mentioned above, it is in the best interest of the company to choose to improve on the relationship with consumers. Tiger should understand that two-way communication and dialogue is given(p) in establishing mutual trust and loyalty amongst consumers. Neglecting their social media feeds in their time of crisis resulted in a at sea social media opportunity for the company. Tiger should have taken advantage of the inst ant communication provided by these social media outlets to convey important messages to consumers during the crisis and answer all their queries and allay concerns immediately. This would definitely reduce the frustrations felt by consumers arising from the silent approach employed by the company.