Z-Wing

Executive Summary

The Z-Wing organization is the largest manufacturer of commercial and military aircraft. The organization has annual revenue of $60 billion, and a market cap of $35 billion. Z-Wing currently has 50 percent of the world's commercial aircraft market with its 824, 878, and 888 aircraft. The current outlook is that the commercial and military aircraft industry will only have an annual growth rate of 5 percent in the near future. Z-Wing as the number one provider must look at ways to keep its competitive edge, over its strongest competitor, Janssen with 47 percent of the market share.

Z-Wing is looking to upgrade its current fleet by adding additional seats so they can accommodate more passengers, developing a smaller long -haul jet that accommodate its customers needs. Z-Wing also has a product which offers Internet, intranet, and broadband service to its customers and flight personnel.

Z-Wing as it strives to remain number one in its industry, will implement a Customer Relationships Management (CRM) system that will enhance the customer experience and assist the organization in developing accurate sales and marketing plans for future growth. The CRM will focus on customer needs, the consolidation of customer related data, and the re-engineering processes in the area of sales, marketing, customer service and support services.

Situation Analysis

Market Summary

As a trillion dollar industry, the core market of commercial aircraft market increasing by 5% annually includes all of commercial transport and general aviation aircraft and helicopters. The external factors affecting the market are government regulations, health and safety concerns, and competition and market growth. Currently, Z-Wing occupies 50% of the world's commercial aircraft market with annual revenues of $60 billion and a marketing cap of $35 billion.

SWOT Analysis

Strengths

* Current Industry Leader

* Brand Recognition

* Strong Base line product to build upon

* CRM experience (Program was initiated before - learn from mistakes)

* "In-Touch" Technology

* Experienced leaders and personnel Weaknesses

* Financial Strategy

* Timeline Management

* Change Management -Internal and External resistance to change

Opportunities

* Continued Industry Leadership

* First to implement new technology

* Build and Secure Customer Relationships

* Empower employees to ensure a positive organizational culture

* Meeting Customer Needs Threats

* Competition - Janssen

* Changes in Safety Regulations

* Economic Recession

* Changes in Technology

* Decline in Customer Base

Competition

Janssen has recently captured 47% of the world's commercial aircraft market and is closing in on Z-Wing for the leadership position. The competition between the companies began about 10 years ago over air space and has only intensified.

Product Offering

Z-Wings aircraft models include the 824, 878 and the best selling model 888. Z-Wing has a concentrated focus on the introduction of three new products. First, Z-Wing proposes the blue prints of aircraft model 888XX, an upgraded model of the 888. Secondly, Z-Wing introduced a prototype Z-Aero I, a small, long haul aircraft that will decrease time for point-to-point travel destinations, which was openly accepted at the Paris Air Show this summer. Finally, the commercial aviation support services market is estimated to exceed $3 trillion and surpass the commercial aircraft industry market revenues over the next 20 years. With this outlook Z-Wing introduced the "In-Touch" service three months ago. The service offers a broadband, Internet and intranet connection to passengers and crewmembers inside the aircraft. Using the proven success of this prototype, Z-wing will offer the service in other aircrafts as well.

Keyes to Success

The timing release of the new product offerings will ensure Z-Wing a continued leader in the commercial aircraft industry. Z-Wing must also focus on CRM modifications by Abner Tech. By developing and nurturing existing customer relations, Z-Wing will create a strong foundation for future business and consumer relations. Effective product knowledge training and implementation of changes and updates must be an internal priority. Z-Wing must also maintain a balanced budget though out all implementations and may look to cutting cost to increase revenue reports as well as consider economic factors in pricing.

Critical Issues

* Return on Investment

* Product Cost and Government Regulations affecting Pricing

* Prioritizing Business and Marketing Strategies

* Maintaining a balanced budget

* Meeting Customers' Needs

Historical Results

* Previous Support Implementation Failures

* Low return on investment

* Slow adoption rate of CRM (even after 2 years)

* Positive feedback on haul jets at the Paris Air Show

* Successful "In-Touch" prototype

Macro environment

Competition, economics, social, technological and regulatory services make up the macro environment. In the commercial aircraft manufacturing industry the macro environment must be evaluated frequently to keep up with changes in technology and regulations and monitor the competition's position. Z-Wing also adapt to the social and economic changes that ultimately affect the aircraft manufacturing