As discussed in the case study, the aviation industry is a dynamic and rapidly growing industry. Although very lucrative, profits are difficult to achieve in the long term. Despite this, the airline industry has doubled its revenue over the past decade, as reported by the International Air Transport Association (IATA). This growth is largely driven by low-cost carriers (LCCs), which hold 25% of the global market, thanks to their entry into emerging markets. Additionally, the case study mentions that growth came from stable and continuous profits. For all intents and purposes, the aviation industry appears impeccable and extremely profitable, but it faces many challenges that are stifling its success and survival. This essay aims to discuss the challenges facing the aviation industry as well as answer the question whether localization strategy is viable in this industry. Firstly, the problems faced in this industry will be discussed and then categorized into external and internal challenges. Additionally, this essay will define localization, its importance and whether or not it is a feasible strategic plan for the industry. Finally, in summary, this essay will indicate whether it is in agreement with the common strategy of the airline industry and with potential recommendations for the industry. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get Original Essay According to the case study, one of the major challenges facing the aviation industry is the inability to break even, which is an external challenge. Challenges external to an industry or company are issues over which companies within the sector have no control and, as such, can only react to them. This struggle stems from the high level of regulation imposed on this industry by the relevant authorities. Mhlanga (2017, cited in Bailey & Panzar, 1981), infers that regulation makes markets non-contestable, meaning that market entry is not only costly but difficult. Furthermore, it implies that sunk costs are higher than they should be and entry risks are insufficient to prevent competitive incumbents from entering the market. Furthermore, competition between the government and private airlines for customers results in a significant conflict of interest as the governing body is now forced to be both judge and competitor in the market. Legislation by government authorities poses a crucial danger to the airline industry due to the costly nature of complying with the rules set by the authorities. Now, some forms of regulation exist to protect domestic airlines from LCCs and as such pose a threat and thus make the airline industry unprofitable. According to Walulik (2018), “current international regulation is still fragmented and prohibits the emergence of truly global businesses, markets and competition, as in other sectors”. Regulations imposed on the aviation industry not only hinder profits, but go against the very nature of the particular transportation sector that is aviation. Additionally, as the case study indicates, external challenges such as pricing pressure influence the average ticket price. . When average prices fall, airlines struggle to make adequate profits while dealing with the increasing costs associated with this industry, thus failing to break even each time.period. As noted in the case study, the airline industry is extremely lucrative but suffers from minimal profits. partly due to growing consumer demands that are not adequately met. In order to continually attract customers, the airline should improve its aircraft and all other relevant technologies. This is very costly, as an upgrade to the machines could easily cost the company millions. These millions could very well be used to expand other aspects of the business such as consumer desires. For example, an airline that already owns aircraft may want to purchase Boeing's newest aircraft in order to attract travelers, but this expense is not necessary because there are other options for success. The airline could use these millions to purchase a new plane to improve the airline's marketing, advertising and general image. This would promote the image of a brand that wants to reach its customers personally and is not just looking to impress them with new planes. According to the case study, the aviation industry is facing expensive fuel and increasing operating costs. This is due to high fuel prices across the board. It is becoming more and more expensive to run an airline as fuel prices are constantly changing and increasing. It is more efficient these days to own a fuel-efficient aircraft that will save the airline millions in fuel expenses. Singh, Sharma, and Srivastava (2018) argue that getting a brand new aircraft leads to an improvement in the airline's skills. Ensuring that the aircraft is well maintained for a period of time will significantly reduce fuel and maintenance costs. Now, increase profits by reducing costs and inefficiency. The only problem with acquiring these efficient planes is that they are much more expensive than regular planes. The airline must therefore be prepared to face the high maintenance and supply costs in order to significantly reduce its long-term expenses. Singh et al (2018) assume that costly measures taken by airlines to subsequently reduce costs – by introducing new aircraft – will be the cause of the major time lag problem. As new technologies are continually being developed, the airline will therefore constantly lag behind innovation in an attempt to keep up. The airline must decide whether it will grow through the acquisition of new technologies or whether it will strengthen its organization's customer centricity initiative internally in order to increase profits. The case study shows that costs can be saved and minimized through the implementation of an organizational structure. , an improvement in production costs and changes to the operating plan. As noted in the case study, it is observed that older airlines have complex systems that are more expensive to operate than smaller, low-cost airlines. Older airlines, as well as domestic airlines, should look to speed up their operational process so that it is quick and cheap and not complicated and expensive. In the case study, it was observed that low-cost airlines attempting to enter established markets may fail. This is due to the loyalty of existing customers which is difficult to change. Additionally, the difficulties faced by low-cost carriers can be attributed to their inability to properly understand themarket in which they operate and the costly nature of the business. As per the case study, the issues facing the aviation industry are numerous and complex. In light of this, the case study recommends that airlines continually pay attention to the innovative growth of their products, or risk continuing to see diminishing profits in the long term. The case study further recommends that airlines make customer needs a major factor in the success of this industry. (Hout, Porter and Rudden, 1982, p.98). For these reasons, airlines should view their strategic plan as a guide to improving the products and services offered. Most airlines (or LCCs) use global management strategies because they operate in the global market with the intention of increasing sales and making profits in all countries (Iftikhar, 2018). One overall strategy that the airline may intend to use is the localization strategy. Localization strategy focuses on creating customized products for a business to meet the wants and needs of consumers in that particular environment and make a profit (Nzonzo, 2019). Localization aims to increase local responses from customers in their home area. This involves ensuring that the products are made to measure, that the marketing plan is innovative and well thought out. Furthermore, the localization strategy must be fully integrated into the national environment in order to attract locals to the product and thus realize profits. Through research and development (R&D) of new products and innovations, the airline industry would be able to create personalized or specialized products and services tailored to the desires of local customers (Barrosoa, Giarratanab & Pasquini, p.13 2019). For example, an airline that does not take into account the cultural, religious or economic views of its passengers is likely to make serious mistakes in creating products, marketing and managing production systems for that region. particular. Localization implies that products meet consumer desires while creating innovative, profit-generating products. As such, consumers must be able to see the value of the new specialty product being offered in order to increase sales. Other disadvantages of this strategy would be that product customization sometimes restricts the sharing of information and skills that traditional airlines have compared to their smaller counterparts. This leads to wasted capital and increased costs. As the case study indicates, the airline industry is expensive to operate and suffers from low customer responsiveness in helping them understand the business better. For this reason, its profit margins are low. To be lucrative, the airline industry should resort to transnational strategy. It is a strategy that simultaneously strives to minimize costs, differentiating the product offering in different markets while adopting a flexible approach and sharing skills across the company's global arms, as outlined previously ((Nzonzo, 2019). The transnational strategy takes advantage of the vacancy of the world, by allowing brands and companies to extend their global impression in the offering of their products and services, while taking into account the disparities social and societal factors that shape customers in this particular local environment allows resources to be shared between countries, it allows less restricted coordination and finally, it.