Business Travel Market

 

Increase of Business Travel Budget in 2015/2016

German businesses invest a lot of money for traveling purposes in Germany, Britain, France, Spain and Italy.

A lot of money is spend on business travel which suffered the financial downturn for companies and therefore has the Business Travel association decided to rise the budget by 6 percent annually in 2015 and 2016.

A lot has happened since 2009, the budget back than was $171.7 billion, which went up to 187.3 billion in 2014 and now will it take the market to 210.6 billion, which is about 2.4% more annual money than in 2014.

"The study shows that the European economy is gathering steam and beginning to put its economic woes in the rear-view mirror," said Catherine McGavock

However in Germany has the largest business travel market in the western Europe region made a estimate of $57.9 billion, spending is set to rise 9.5 percent in 2016, while In Britain is expecting a raise of 6.2 percent driven by lower fuel costs.

This picture represents passengers leaving Terminal 2 of Heathrow Airport

Meanwhile will France have a growth of 3.4 percent and Italy 1.9 percent because they have a weaker economic growth.

The Increase of Business Travel Budget is touching the Business Management Chapter of Finance focusing on the Business Travel Market investing money. 

This Article represents the idea of why the government decided to invest more money onto the market, which can therefore bee used by business and of course is the government making ethical decisions to have bias numbers to the specific regions according to their economic growth. 

Will Windows be able to keep up with Apple - Market Share

Finally has Windows made a step in the right direction on the mobile phone market and is stepping up to Apple IOS. The Company had been on the top for their operating systems a while, but had a throwback with their Windows Phone.

Windows has launched their first mobile phone operating system in 2010.

The Companies market share has risen in the last three years, even with their high competition on the market.

Comparing Windows with IOS, Android and other companies, have IOS and Windows market share increased, where as Android and other operating system companies market share has fallen.

The windows phone seems to get very popular in the Europe region such as Germany and France, where their market share has increased:

Germany: 6.9% to 10.9%

France: 9.9% to 13.1%

Which means there market share has risen about 3.2 and 3.6% in the last years. Where as Apple IOS has demonstrated with their regular software updates, that it is still a very competitive company.

Great Britain: 27.9% to 33.7%

Australia: 29.3% to 37.8%

Japan: 27.1% to 33.8%

As we can see has Apple been the market leader and very hard to compete with because of there enormous market share compared to the other operating system companies.

 Both these companies have launched their new Phones with the new software’s.

Windows has launched “Windows 10” on October 6, 2015 where as Apple has launched the Iphone 6s on the 25^th September 2015. Let the competition begin, who will be the next market leader!

Windows has now to compete with the new Apple product.

This article related to the Market Share topic in the Business Management Syllabus, which refers to the revenue change and their market share change during the last year and the future that lays ahead of them.

H&M market share increase and strong growth

H&M Store in New York City - Times Square

The Swedish multinational clothing retailer Company was founded in 1969. H&M exists in 57 countries with over 3,500 stores.

The Company expanded in July 2015 700 stores in 28 markets and the planning to open 400 new stores until the end of the year. These expansion plans were developed due to the increasing market shares and huge total revenue they have received until August 2015.

Due to an interesting turn of market share, did the company receive an unexpected sales result. The third-quarter sales went up 20 percent as the company has grabbed more market share and increasing their market share with their new marketing strategy.

The company has made a large profit because of an increased cost caused by a strong dollar, while revenue surged to 46 billion kronor from 38.8 billion a year earlier.

This topic touches lightly the business management syllabus by the topics Market Share and Sales Revenue of the Company.

H&M stores all around the world. KEY: red --> stores/ pink --> planned stores

CUEGIS:

Globalization= it is present by the effect of expanding and opening new stores all around the world due to an increased sales revenue. The money is being re-invested.

Strategy= Marketing Strategy à Advertising

Malaysia Airlines

Malaysia Airline brand image hasn’t been that positive these days, due to the last year´s plane crash into the Java Sea and one in the Ukraine.

The firms says that their net loss is adding up to 429 million Malaysia Ringgit, which was added up by their poor result with the higher airport landing costs in Malaysia but it was also contributed by their bad reputation in the plane service department.

To reduce the total cost has the company decided to not buy new aircrafts as it had been planned, but they will start leasing the aircrafts such as the new Airbus A350 from 2017 onwards. The deal has been offered by the Malaysian flag-carrier holdings, which offered them lease options of two A350-900s and two A330-900neo aircrafts.

These aircrafts are supposed to have new features (new designed seats for economy, business and first class), which should attract new customers.

As the Malaysia Airlines Chief Executive Officer Christoph Müller said: “The A350 is the most technologically advanced aircraft and we are confident that it will deliver exceptional passenger comfort and improve the overall efficiency of our fleet", which leads to that the Company tries very hard to win over the customers base again with new features.

Through the new leasing options, does the company receive new aircrafts, which therefore also create new job opportunities for local/ Malaysian citizens, the company estimated about 6.000 new jobs will be available from the start of 2017.

This sources scopes a little bit around the Business Management Syllabus, by touching the Human Resource Topic; by talking about the new staff/ job spots will be available by this strategy. As well does it touch the current topic Finance, where it talks about the sources of Finance, which is the main topic of this article, that the Company gets a lease, which is a long-term of finance by giving the opportunity to pay it back in 5 years or longer.  

Samsung Galaxy S6 – disappoint profit fall

How it seems is Samsung having a difficult time with their new product that aired in April 2015. Up till now was the Korean Company very popular all around the world with their products. Especially with the new Galaxy S6 and Galaxy S6 Edge, were especially popular in Asia area but it seems like it hit the bottom in Europe and the USA.

This article is focusing on the aspects that Samsung´s expectations haven’t been met and it even ended up with a 2/4 drop in the operation profit, from 4 billion pounds that were expected. The Company had remarkable profit numbers till 2013 but since the smartphone market (Apple - USA and Xiaomi – China) increases year by year, has their annual profit dropped by 15%. The current new Samsung phone the Galaxy S6, has been such a great hit at the Asian Market, but it seems that the USA market and European Market are not so fond of this smartphone, that due to those shipments, there was a huge lost in profit. As well has their market share decreasing by 7.2%.

The Solution to these problems that Samsung can relate to is to change the new update on the S6 and Edge, to newer and more reliable ones that the phone might come back on the European market. As well would the company have the opportunity to merge to boost control over the conglomerate.

The Samsung Article, although that is just a small analysis of this weeks problem of the new Samsung product. It shows a focus on marketing and objectives. Which scopes around the Business Management Syllabus, as well does it touch the topic of market share, how it has dropped this year on the smartphone market. 

Category:

Globalization: Explains the fact that Samsung has reached to this conclusion early and tries to find new market Strategies to get the sales up.

 

Article resource 

ALIBABA INVESTING IN SNAPCHAT

Alibaba investing in Snapchat BBC NEWS

The app is a photo messaging application that was developed by Evan Spiegel, Reggie Brown and Bobby Murphy. This app lets users make pictures, record videos, add text and drawings and than send them to a controlled list of recipients. It allows users to send text and picture messages, which disappear in 10 seconds.

Its initial release was in September 2011 and is available in many different languages, which runs by its stable release on 8.1.1.

It has recently introduced advertising on its platform to start generating revenue, through that the firm says that they send 700 million snaps daily all around the world from different users.

The Chinese firm recently has provided the company with approximately $200 million in a stake.

The firm looks forward to work with the app because the firm wants to have a higher range of start-ups in the USA, because the Chinese firm has already given money to many apps around the world, but its portfolio in the USA is relatively small. Through this they make a big step towards the USA market, through brand awareness of Snapchat.

Its rare for a Chinese internet giant as Alibaba to give money to an app, that is blocked in the country China, where the Company is located.

For the firm to give money to the company, is just a aim and objective to have global reach, to more customers outside the Asian border. The Company hopes for brand recognition of Snapchat as well as on their local customer. The company wants to make there $15 billion business, which is one oft he world ´s most valuable start-ups, to make a better profit and revenue until the year ends.

Follow the Product: The 4Ps

The new version oft he Galaxy phones from Samsung, world be the Samsung Galaxy A5, which has been on the market since the 31st October 2014. The Smartphone is running on an Android (4.4.4) OS, with an aluminium body, which weights all together 123g. The display hast he size of 5 inches, with a screen resolution of 720 x 1280 pixels.

The features of the new smartphone are the 5-megapixel front cameras and the 13-megapixel front cameras. The phone provides opportunities for huge memory accessibility, with a SD card slot and a Sim card slot.

The product differentiates itself from other products on the current market, by its low price for smartphones, that not many companies do and by its little features that you cant really see and its improvements, which aren’t really recognizable.

The official price for the Samsung Galaxy A5 at 468,90 Euros, but currently is it set to 420,00 Euros on the Samsung website, which also includes and external power pack extra. Which is clearly predatory pricing from Samsung, because it is a competition based strategy from the Company, by deliberately setting the price lower than other Companies. Therefore more consumers of smartphones would by their new smartphone from Samsung.

Samsung’s hugest competition would be Apple, with their new IPhone 6/ IPhone 6+, which aired short before the Samsung Galaxy A5. Samsung tries to compete with Apple, by setting the price at a lower edge and therefore at a higher risk of success. Currently does Apple sell their IPhone 6 for 690 Euros, which is a difference of 221,10 Euros.

Samsung uses the direct selling/ Zero Level strategy, which leads to standing on their own feet, because there is no mark up/ profit taken by others as well does Samsung have the complete control. They decide everything also the fixed costs that need to be taker or charged at different places for the phone. Samsung’s strategy is to go over wholesales sales, by contacting different mobile contract centres as Vodaphone, which therefore sell the products to their customers.

Samsung uses their brand awareness and recognition as their promotion strategy for their product by attracting attention – with family products as their Samsung tablet, which uses similar features to attract more customers.

Above the line promotion would be adverts on websites, as well as technology business and local Magazines, which targets a large audience, Billboards and Posters everywhere – Tram stops etc.

Below the line promotion would be coming directly from Samsung by e-mails to show that a new product is available, which they can only do if a product had already been bought before. As well as only there recognition by their brand names and Logo.

The Samsung Galaxy A5 is right now in the Growth state accessing the Maturity stage soon, by its huge sells, the last few months’ weeks.