E Commerce at Yunnan Lucky Air
E - Commerce at Yunnan Lucky Air:
Introduction:
Backed by the Hainan Airlines of the China, Yunnan Airlines was founded in 2004 as one of the most cost-effective domestic airline operating from its hub in Kunming, in the province of Yunnan. The limited route license added to the airline’s competitive advantage and maintained its monopoly within the region. Its major competitors include Air China and China Southern Airlines among others. As Yunnan is one of the most attractive tourist destinations of Southern China, the airline attracted a lot of customers and started producing profits within just three years of its inception.
This huge success was the result of a viable strategy of the company that included just one type of airplane to reduce maintenance and costs, short haul and point to point routes and just one seating arrangement. There was no in-flight entertainment as well but as the airline was dealing in just short trips, these factors did not adversely affect its revenues.
Presently, the company is facing a niche competition after the introduction of many new low-cost airline companies in the already saturated market and to keep itself ahead of the competition, Lucky Air needs to revisit its business strategy and come up with a plan of action that would help in its progress. This task is unduly challenging as it faces many competitors and any error or lapse of judgement may adversely affect the future of the company.
E-commerce in China:
According to (Kotler et al, 2012) ‘The digital revolution has created an Information Age that promises to lead to more accurate levels of production, more targeted communications and more relevant pricing’. In western countries e-commerce is not only a great asset in the business world, it is becoming the most dominant factor of gaining advantage and expanding their range within the sector. The internet usage in the China, however, is fairly limited and there is still a lot of potential for penetration inside the
Introduction:
Backed by the Hainan Airlines of the China, Yunnan Airlines was founded in 2004 as one of the most cost-effective domestic airline operating from its hub in Kunming, in the province of Yunnan. The limited route license added to the airline’s competitive advantage and maintained its monopoly within the region. Its major competitors include Air China and China Southern Airlines among others. As Yunnan is one of the most attractive tourist destinations of Southern China, the airline attracted a lot of customers and started producing profits within just three years of its inception.
This huge success was the result of a viable strategy of the company that included just one type of airplane to reduce maintenance and costs, short haul and point to point routes and just one seating arrangement. There was no in-flight entertainment as well but as the airline was dealing in just short trips, these factors did not adversely affect its revenues.
Presently, the company is facing a niche competition after the introduction of many new low-cost airline companies in the already saturated market and to keep itself ahead of the competition, Lucky Air needs to revisit its business strategy and come up with a plan of action that would help in its progress. This task is unduly challenging as it faces many competitors and any error or lapse of judgement may adversely affect the future of the company.
E-commerce in China:
According to (Kotler et al, 2012) ‘The digital revolution has created an Information Age that promises to lead to more accurate levels of production, more targeted communications and more relevant pricing’. In western countries e-commerce is not only a great asset in the business world, it is becoming the most dominant factor of gaining advantage and expanding their range within the sector. The internet usage in the China, however, is fairly limited and there is still a lot of potential for penetration inside the