Eclipse is at the advantage of serving customers who operate at shorter routes and local airports. It is likely to advance more in this coverage as compared to long-range and long-distance routes because large airlines are already better placed to offer better services in these routes as compared to Eclipse. As relates to suppliers, the firm can rely on only suppliers who will be able to render what it wants. With specifications on what type of jets relates to their demands, they are not likely to accommodate all suppliers for the components because of the limitations of the jet’s specifications. They seem to have adopted technology that is only able to be supplied by specific suppliers and designers, such as the usage of aluminum in the reduction of the cost and assembly for their jets. As far as rivals are concerned, the company is already advanced in the utilization of front technology as compared to those small-scale operators in the industry. Therefore they are better placed to win the market in this perspective. New entrants are likely to face a steep slope while launching services in jet operation because Eclipse will have captured a great deal of the market. Collaboration with leaders in aviation is likely to boost the firm’s competitive nature even with substitutes such as road and rail transport. However, they continue to face save stiff competition from operators who are large-scale and have extensive coverage across the world. These have already a large customer base and have better-established customer retention programs such as customer reward programs.
Distinctive services and at a lower cost
Eclipse has been offering services that others have been offering but has advanced to try to offer these services at lower costs. Reduction of the cost of services has been the result of innovation as well as cheap maintenance and operation costs in the event of underfunding of aeronautics research and technology programs” by NASA and DoD (ASME). Distinctive services on the part of the customer can only be understood as cheaper services, more comfortable and exclusive services, among others. However, these have been achieved by the involvement of other strategies such as incorporating other leaders in the aviation industry, which have given services that have to lead to more reliability of Eclipse’s services to customers, cost-effective technology, speeds of travel as well as more secure travels as may be enhanced by better operation by the pilot for example through “pilot-friendly displays” (Afuah, 278). The latter has been enhanced by the usage of intelligence systems and better display technologies on the cockpits. Reliability is an essential element for those customers who are involved in business practices as well as officials such as governmental officers. The speed ability can only be understood as the ability to operate more travels within the routes of operation, and if the company can avail cheaper travel than competitors, then it means the public will benefit more because cheaper schedules are available to them. The lower cost of services has been the result of the usage of techniques such as aluminum utilization in the jet assemblies. If competitors have not been able to completely imitate this technology, then the company will continue to enjoy the benefits. The cost of operation and manufacturing ensures that the total expenditure for the firm remains lower than that of its competitors and the benefit is passed on to the consumers.
Geographic and demographic customers and the value of the service offered
The company is not providing the value of its services to everybody. The type of services being offered are those of short distances and within local airports because of the nature of business and the limitations of the capability of the jets. The company operates locally. Therefore, the customers benefiting from this offer are mainly those who operate locally and within short travel distances. The company appears to have capitalized on the manufacture of short routes airliners. The entry into the business of the jet planes operating at a local level was a result of the congestion to provide alternatives for the large airliners. The advance in the exploration of the Small Aircraft Transportation Services was to facilitate the usage of several public-use aircraft within a 20-mile drive. The demand was large because local aviation served 98% of the U.S. population. It was difficult and still is for the long-range airplanes to serve such a large segment of the population. In 2000, several local airports were at an “underutilized” (Afuah, 276) state by supporting less than 50 million take-offs and landings. NASA believed that the airports would support up to 500 million take-offs and landings. There was an interest in identifying low-cost air travel technologies and efficient regional air service operators. In addition, there would be benefits as a result of such advances, including lower prices for travels without compromising on safety or security, realize fewer delays, shorter travel times, and greater scheduling flexibility, if the alternative was explored. By providing aircraft that would save on operational and maintenance costs, Eclipse would have an opportunity to excel in this type of business because there was the assurance of market.
Works Cited
Afuah, Allan. Business Models: A Strategic Management Approach. Irwin: McGraw-Hill, 2003
ASME International. “Crisis in U.S. Aviation research and technology”. ASME. 2010. Web.