Strategic group map of the low cost airline industry

Customers — Customers include mostly individual travelers and organizations. This change consisted of adding additional cities outside of Texas. A sullen workforce can drive customers away to rivals. For an airline company, aircrafts are costly and vital pieces of equipment. It was also the leading carrier in California, Texas and Florida.

From the leaps and bounds that technology has brought on, through the terrorist attacks inthere are many challenges that the air transportation industry has faced. People enjoyed the light atmosphere; it would help to reduce the anxiety of nervous flyers. With such a large pool of separate customers, little power is exerted by the buyers as a cohesive group.

Characteristics of the Airline Industry — The Airlines are grouped in many ways, including their size and what they transport. Within the European Union, air services were fully deregulated and liberalised by the early s.

Airlines need to offer routes between markets that are desired and utilized by customers.

Industry Description Hartley Grimm A. In the case of Southwest Airlines, as a new company, they had to evaluate the market.

Added to this is the unpredictable nature of fluctuating oil prices.

Three of which have a priority on cargo transportation. It has 1, daily departures to over destinations in 23 countries and 2 U.

On June 18,the airline started service. The limited nature of this industry gives these aircraft suppliers greater power in setting prices. Competitors Jesse Coad A. Continental also provides service to 31 cities in Mexico and Central America.

Key Factors for Competitive Success Locations that an airline services — The servicing of particular geographical markets are essential in the nature of the airline industry.

Those airlines that are able to control these elements are said to provide better service to the customer, and thus offer more reliable service. Plus, they had 10 minute rapid turns at the gate with all stewardesses pitching in to help clean the plane.

Inpapers were filed to incorporate the new airline. Company Description Kristen Barson A. A Pleasant workforce can encourage repeat business.While implementing strategic group mapping for the U.S.

domestic airline industry, two strategic groups become apparent: low-cost, point-to-point airlines (Virgin Atlantic, Alaska Airlines, JetBlue, and Southwest Airlines) versus differentiated airlines using a hub-and-spoke system (American, Delta, and United).

Specifically, this article seeks to identify strategic groups within the U.S. airline industry using the well-established competitive strategy model of Michael Porter.(3) According to Porter, a strategic group consists of rival firms with similar competitive approaches and positions within the market.(4).

Low-cost Competition – The rise of the low-cost carriers has forced a change in the competitive environment of the air travel industry.

Southwest, JetBlue, and Airtran, among others, operate off of low-cost strategies that allow them to offer relatively low airfares. hypothetical scenarios and try to stay ahead of problems that may occur.

3. Create a Strategic Group map of industry (but not the airline industry) using two broad characteristics- price and product-line. Use at least eight firms in this analysis%(26).

Strategic group model of the European airline industry

GROUP REPORT The competitive analysis of easyJet Summary The concept of 'low-cost' airline appeared in in the United States with the launching of Southwest (Southwest Airlines Co.).

Moreover, equipment linked with the airline industry are also expensive. That is why new entrants are restricted. Also, regulations are strict and.

Key Success Factors in the low-cost airline industry 3 Strategic group map example in the low-cost airline industry 5 QUESTION 2 Comprehensive analysis of SA low-cost airline industry 6 Buyer Power 10 Supplier Power 10 Substitutes 10 Rivalry 10 New Entrants

Strategic group map of the low cost airline industry
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