Rolls-Royce Aviation and the Development of TotalCare Case Study

Rolls-Royce Aviation and the Development of TotalCare - Case Study Example As the paper outlines over a period of just a few years, Rolls-Royce managed to be a compliant supplier to American Airlines and found significant business success and profitability in the process. However, Rolls-Royce maintained a strong thirst for extra profit and began to assume more risk than they originally thought they could handle. Such total care packages, as that of American Airlines, required significant internal investment into labour, facilities management and even technical support in order to provide this new extended service and maintenance contract philosophy. Realising that Rolls-Royce had found success, their largest competitors began to change their own business models to reflect similar total care packages to the B2B customers. This eroded the short-term competitive advantage which had been recently held by Rolls-Royce and threatened their market share. Added to this the costs of maintaining maintenance workshops, Rolls-Royce required a new competitive advantage i n order to remain an engine sales leader in this airline industry. This paper discusses that Rolls-Royce has focused the majority of its efforts into innovating actual service delivery to its customers, but has failed to create a marketing strategy which appeals to the psychographic characteristics of its clients. The company does not understand how to utilise promotion effectively to make the sales agreements more of a client relationship which provides mutual value to both businesses. Thus, the business has lost its previous competitive edge.