Comprehensive Analysis of Sa Low-Cost Airline Industry
TABLE OF CONTENTS
QUESTION 1
1.1 Key Success Factors in the low-cost airline industry 3
1.2 Strategic group map example in the low-cost airline industry 5
QUESTION 2
2.0 Comprehensive analysis of SA low-cost airline industry 6
2.1 Buyer Power 10
2.2 Supplier Power 10
2.3 Substitutes 10
2.4 Rivalry 10
2.5 New Entrants 11
2.5.1 Government Policy barriers 11
2.5.2 Capital Requirements 11
2.5.3 Economies of Scale 11
2.6 Competitive Advantage 12
2.7 SWOT analysis 13
2.8 Conclusion 14 References 16
Question 1
1.1 Key success factors in the low-cost airline industries
The low-cost airline industry has undergone cold season since terrorist attack in 2001 thus requiring strategies to be put in place in order to gain or maintain competitive advantage. The global economic recession, terrorist attack, increases in jet fuel are among the growing threat keeping the industry on its toes.
Major players in the industry, namely 1time Airline, Interlink Airline, Mango Airline and South Africa Airlines (SAA) are kulula.com competitors tailored in the past years survival strategies in order to upset the market share to their favour.
The key success factors (KSF) as outlined in the case study “kulula.com: Now Anyone can fly” are the minimal requirements customers expect in respect of characteristics of products or services (such as safe air transport from one location to another at a relatively low price) provided by any airline carrier. In order to be successful, they have to carry out their business from a certain value-based perspective within the identified market constraints (such as threat to existing competitors, structural difficulties, load factors barriers, non-availability of enough secondary airports/capacities to deal with the expected volume of low-cost passengers trend and reduced budget (advertisement) and concentrate their attention on the
QUESTION 1
1.1 Key Success Factors in the low-cost airline industry 3
1.2 Strategic group map example in the low-cost airline industry 5
QUESTION 2
2.0 Comprehensive analysis of SA low-cost airline industry 6
2.1 Buyer Power 10
2.2 Supplier Power 10
2.3 Substitutes 10
2.4 Rivalry 10
2.5 New Entrants 11
2.5.1 Government Policy barriers 11
2.5.2 Capital Requirements 11
2.5.3 Economies of Scale 11
2.6 Competitive Advantage 12
2.7 SWOT analysis 13
2.8 Conclusion 14 References 16
Question 1
1.1 Key success factors in the low-cost airline industries
The low-cost airline industry has undergone cold season since terrorist attack in 2001 thus requiring strategies to be put in place in order to gain or maintain competitive advantage. The global economic recession, terrorist attack, increases in jet fuel are among the growing threat keeping the industry on its toes.
Major players in the industry, namely 1time Airline, Interlink Airline, Mango Airline and South Africa Airlines (SAA) are kulula.com competitors tailored in the past years survival strategies in order to upset the market share to their favour.
The key success factors (KSF) as outlined in the case study “kulula.com: Now Anyone can fly” are the minimal requirements customers expect in respect of characteristics of products or services (such as safe air transport from one location to another at a relatively low price) provided by any airline carrier. In order to be successful, they have to carry out their business from a certain value-based perspective within the identified market constraints (such as threat to existing competitors, structural difficulties, load factors barriers, non-availability of enough secondary airports/capacities to deal with the expected volume of low-cost passengers trend and reduced budget (advertisement) and concentrate their attention on the
References: Continental 4.1 -.336 8.40 779 Table 1: Domestic Sector Financial & Operating Data for U.S Major Airlines, 1993