OurPlane

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Description

OurPlane Summary

Summary

OurPlane is facing serious threat in the industry and as such, must address these issues, if it wants to remain in business:

  • Competition is offering to offset carbon emissions with existing environmental programs.
  • Competition, especially Netjets has an aggressive marketing plan that features famous customers such as Roger Federer, Tom Brady and Tiger Woods that outweighs OurPlane’s marketing plan immensely.
  • OurPlane only flies local, cannot take up many customers and is not able to offer extensive customer service as its competitors in the market.

In as much as OurPlane faces competition from aviation companies that offer longer flights capable of carrying many passengers to longer destinations, the competitive pricing and smaller planes and jets are also OurPlane’s competitive advantage in the industry. Beating the recession will require more flights and aggressive advertising by the company. Based on this understanding and the financial analysis of OurPlane plane share ownership growth strategy, the company will be able to able to get a net profit and positive Return on Investment (ROI) in the best and worst scenarios. For instance, in the first year of the share ownership growth strategy, OurPlane will achieve profits of $1,722,375.62 under the 50% discount best case scenario, $1,363,981.62 under the 30% discount worst case scenario and $1,543,228.62 under the 40% discount best case scenario.

Recommendation

I recommend that OurPlane seeks shareholders first then go ahead to purchase the planes at discount and double its existing fleet. Nonetheless, in order for OurPlane to attain the projected revenue from the planes, it must undertake an aggressive and effective marketing plan so as to gain more competitive advantage in the market.

The company can hire a marketing consultant to facilitate brand awareness through public relations and digital marketing with the aim of getting more customers to make use of the now many planes for traveling. Otherwise, failure to get these customers will result in huge losses from costs of purchasing, running and maintaining planes that are not in use. OurPlane will require an initial investment of 12,000 per aviation marketing consultant directed towards highlighting variety of product mix, competitive pricing and environmental friendly activities. Since there is an economic crisis or recession, OurPlane should invest a small portion of its share ownership revenue in “going green” given that the company will be forced to spend money in the middle of a recession since it will aid growth and sustainability in the long-term and foster good company branding and reputation.