Nok Air has two major hubs located in Don Mueang international airport, which is a central domestic airport, and in Chiang Mai. A key competitive advantage that leads Nok Air to be the top budget domestic airline and to gain higher market share is using the product differentiation. Nok Air differentiates itself from other competitors in terms of routes and periods. The firm offers a variety of routes and periods to passengers to enjoy with Nok Air compared to other competitors in the market of low-cost airline. Expanding flying route is one of the firm’s strategies to serve more passengers.
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
In the same time, our company is moving towards a performance management system as other organization. Hence, I recommend new strategy that call “new world” strategy. Since our company is doing on low-cost airfare and high quality facilities to make passengers satisfy and also increase the popularization of status. Our company also makes available a service which can provide customer to make privilege card at our company in order to collect privilege points to redeem the flight ticket in the following flight booking. While customer needs to get this free privilege card they need to purchase our company airfare RM300 above.
Competition is essential in any market as it avoids a high market concentration which consequently almost leads to higher ticket prices to be cheaper and always causes prices to increase and consumer surplus which is defined as the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay to decrease. Economic issues arise in a massive merger like in the US Airways and American Airlines merger. The question that I will attempt to answer is whether or not the antitrust laws that were out in place by the US government were effective in avoiding a monopoly and gaining consumer welfare in the airline market. In January 2012 U.S. Airways Group expressed interest in merging with AMR Corporation. This merger would add 1.5 billion dollars in revenue, reduce competition in various cities and create one of the largest airlines in
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
Brand name has made the customers stick to Ryanair as it fulfills all their needs and wants. Even though this company has suffered severe financial crisis in 1990, after restructuring in which they adopted the Southwest Airlines business model, Ryanair became the pioneer of the low-fares model in Europe. On the other hand, another strength that can be highlighted from this airline is that they are charging for ancillary services. Ryanair also has been categorized as the “Ancillary Revenue Champs’ by the 2010 Amadeus Guide to Ancillary Revenue. Although they charged for the services, these attract more customers as they are available at single platform.
For domestic airlines, they cannot compete directly with Malaysia Airline, but there are a few international airlines are threatening the development of Malaysia Airline. In particular, Air France is the airline company is expanding routes to South East Asia and are highly service and quality, as well as providing exclusive personalized service at the airport to help passengers comfortable while fly processing. (asie_2015.01-en.pdf). Barging Power of Suppliers (High) Fuel prices are ever increasing affecting the cost so the supplier power is high. The Asian airline industry is very optimistic about the growth potential of the Asian aviation industry so is placing huge aircraft orders thereby increasing the bargaining power of the suppliers again The civil aircraft industry is monopolized by two major aircrafts
“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
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.