SIM336
Identify Strategic group in Thailand Airline Industry by using the Porter Model
And evaluate what kind of strategies can be used in the future
Table of Contents
Introduction 3
Characteristics of FSA in Thailand
Characteristics of LCC in Thailand
Data and Methodology 4
Findings 4
Socioeconomic Area
Characteristics of Journey
Porter’s Generic Strategies 8
Low Cost Leader
Differentiation
Focus
Conclusions and Recommendations 11
Related Integration for Thai Airways
Product development for Air Asia
Horizontal Integration for Nok Air
Strategy for Low cost Airline- Product Development & Market Penetration
Strategy for Full service Airline- Joint Venture
Bibliography 14
Introduction
There is a traditional full service airline based in Thailand, Thai Airways. It is the national carrier of the Kingdom of Thailand operating commercial flights domestically and internationally. Since the low cost carriers (LCC), which are Air Asia and Nok Air, started operating in Thailand on 2004, there are some impacts to Thai Airways. According to Travel Distribution Summit Asia 2008, the penetration rate for LCC just around 10 percent of the total market share. However the domestic air travel with LCCs has been increasing continuously. In this assignment we are going to use Porter Generic Strategies to analysis and evaluate the success of both full service airline and low cost carrier and suggest different suitable strategies for both Full service airline and low cost carriers.
(Source: Kittchai, 2010)
Characteristics of Full Service Airline (FSA) in Thailand
There are more classes of service provided by Thai Airway when compare with the other two LCC. The seat, meal and service in business class are greatly different from the economy class. Since there is one more distribution channel, the travel agencies, the pricing structure is more complicated. Thai Airway is an international airline has connection with other international
And evaluate what kind of strategies can be used in the future
Table of Contents
Introduction 3
Characteristics of FSA in Thailand
Characteristics of LCC in Thailand
Data and Methodology 4
Findings 4
Socioeconomic Area
Characteristics of Journey
Porter’s Generic Strategies 8
Low Cost Leader
Differentiation
Focus
Conclusions and Recommendations 11
Related Integration for Thai Airways
Product development for Air Asia
Horizontal Integration for Nok Air
Strategy for Low cost Airline- Product Development & Market Penetration
Strategy for Full service Airline- Joint Venture
Bibliography 14
Introduction
There is a traditional full service airline based in Thailand, Thai Airways. It is the national carrier of the Kingdom of Thailand operating commercial flights domestically and internationally. Since the low cost carriers (LCC), which are Air Asia and Nok Air, started operating in Thailand on 2004, there are some impacts to Thai Airways. According to Travel Distribution Summit Asia 2008, the penetration rate for LCC just around 10 percent of the total market share. However the domestic air travel with LCCs has been increasing continuously. In this assignment we are going to use Porter Generic Strategies to analysis and evaluate the success of both full service airline and low cost carrier and suggest different suitable strategies for both Full service airline and low cost carriers.
(Source: Kittchai, 2010)
Characteristics of Full Service Airline (FSA) in Thailand
There are more classes of service provided by Thai Airway when compare with the other two LCC. The seat, meal and service in business class are greatly different from the economy class. Since there is one more distribution channel, the travel agencies, the pricing structure is more complicated. Thai Airway is an international airline has connection with other international
Bibliography: Stephenson, Frederick J.Fox, Richard J. 2010, Corporate Strategies for Frequent- Flier Programs, Transportation Journal (American Society of Transportation & Logistics Inc). Fall92, Vol. 32 Issue 1, p38-50. 13p.