Expanding flying route is one of the firm’s strategies to serve more passengers. As a result, Nok Air is often the first choice in customer’s mind. In addition, by reaching the destination where its competitors cannot, Nok Air can gain valuable benefits. Since there is no competitor in that destination, Nok Air is the monopoly in that specific area. As a consequence, the firm can compete in price and can set any level of price that Nok Air prefers.
In addition, the availability of information is really high and with the emergence of travel portals who guarantee that they can search for the lowest fares out of all the options available and book it for the client with just a click which even provides the ease of purchase, the bargaining power of the buyer is increasing Frequent flyer programme and online duty free purchase services can create customer loyalty and reduce the threat of customer switching over to other airlines to some extent. Low buyer concentration can also reduce the power of buyers. Competitive Rivalry (High
Although they charged for the services, these attract more customers as they are available at single platform. Ryanair knows that the more the customers, the lower the cost and no doubt that the profits would be high. Ancillary services include trip managements, hotel reservations, car rentals, priority boarding, food, infant equipment, sports and musical instruments. Apart from that, Ryanair has decided to use only a single aircraft model which is the Boeing 737-800 and this is the modern and low cost fleet aircraft. The jet is one of
The paper analysed the airline industry which resulted to be a very attractive industry to operate in. However, this does not mean that you cannot fail in this market. It depends also on the business’ performance, thus, if it follows a clear strategy and can gain from its competitive advantage. But due to the high profitability of the industry, it makes it a lot easier for businesses to be successful and to position
This is no different for Virgin, whilst they could get away we some quality issues as a low cost airline, when they became a full service airline expectation, quality and the consistency of that quality was paramount. Cost base competition will always be a key influence as it is the cost base that constantly needs to be manage Government policies will also be an influence some more than another’s, especially for Virgin which are in a highly regulated industry based on both government policy around the world but also the legal regulation this conditions along can impact service level from a people management process through to quality and maintenance of aircraft. For Apple this is not much different especially in the labour laws which has people and raw material coming in from many place to them be manufactured and shipped. Both
Serving the cities of Dallas, Houston and San Antonio the first advertisement of the airline was “make love not war”. The airline considered itself as a low cost, point to point carrier and took trains, buses and cars as its major competitors. In starting, Southwest aircrafts were flown to airports that were underutilized and close to a metropolitan area so that delays could be minimized and reduced total trip time. Soon, Southwest achieved quicker turnaround times and could offer multiple flights to particular route. The most important trick of the company was use of same type of aircraft i.e.
They can increase expenditure by advertising more or by executing promotions. Therefore existing airlines would innovate in order to maintain or increase their market share, such as encouraging loyalty by providing perks such as frequent flyer miles. Examples of positive reactions are such as: Mango airlines increasing their advertising expenditure in order to increase their market share Negatively: Whereby entities reduce their expenditure, airlines may reduce advertising and other operating expenses to become more efficient in order to reduce their prices in order to maintain or gain market share. The aviation industry requires huge amounts of capital, it’s for this reason that Velvet sky initially only had one leased plane. Knowing this, firms may try to restrict velvet sky from obtaining a market share by reducing prices and innovating ways in which to persuade customers to remain or join them.
Ryanair ensures that all the staff is well trained and experienced. This enables Ryanair to offer high quality services to the passengers (Grob and Schroeder, 2007) To sum up it is evident from this analysis that Ryanair have developed an effective value chain. This ensures that the company can charge less and still make a profit. This low cost approach has appealed to many customers and has allowed Ryanair to grow to become one of the biggest airlines in the world. 4.
“More for more” for Hibiscus Airline because it offer the best quality and service for a high price compared to other premium service in international market. “To high income people, airline companies who need to always produce good service, Hibiscus Airline is a good quality brand that give you the best service to travel across the best destination.” “To low income people, “Firefly” is a quality airline where you are going to travel in Asia at a cheap price.” If this strategy will work well, I recommend an international development of the company
Another factor is the amount of consumers that purchase airline tickets came from middle class income. Due to individual earning, they will tend to choose airlines that offer cheap and affordable ticket fees compared the one who sell it in expensive and indirectly it will lead to high bargaining power of buyers. Next, nowadays with the advancement of technology and social media make the consumers easily to access the current information regarding the tickets, package, promotion, discounts and others from airlines. They will keep getting the notification and will be alert regarding the airlines. Of course the power of buyer will be