Case Study: Distribution Strategy Distribution strategies exist in three forms: exclusive distribution‚ selective distribution‚ and intensive distribution. Kotler and Keller (2009) define each of the distribution strategies as: exclusive distribution limits the number of intermediaries used; selective distribution depends on a limited number of intermediaries; and intensive distribution works with as many outlets as feasible. The distribution strategy of the airlines industry was not a part of
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Distribution Strategy WS5A4 Southwest Airlines - Case Study Operating under an intensely competitive environment‚ Southwest Airlines carefully projects its image so customers can differentiate its product from its competitors. Southwest positions itself in all its marketing communications as the only low-fare‚ short-haul‚ high-frequency‚ point-to-point carrier in America that is fun to fly (Cheng‚ 2010). Its low-priced fares are a brand equity which it "owns" in the mathematical sense of being the
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EXECUTIVE SUMMARY The report is about GMG airline. The first part of this report illustrates problem definition‚ scope‚ objective‚ methodology and limitations. Then the second part of the report which is the major one discusses about the industry first‚ then overview about GMG‚ their mission‚ vision‚ objective‚ policies‚ strategies and organizational structures. According to the data provided by Bangladesh Biman‚ in 1972 it flew nearly 337‚000 passengers in the domestic sector and 367‚000 passengers
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The Low Cost Airline: AirAsia A study of opportunities‚ challenges and critical success factors LGT 3007 Air Transport Logistics Introduction History of low cost airlines The low-cost concept became a moneymaker in the United States‚ where it was pioneered in the 1970s by Southwest Airlines‚ the model for budget carriers elsewhere like Ryanair and easyJet in Europe. Definition of low cost airlines A low cost airline generally has many features that differentiate it from the traditional
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Survival Of Low Cost Airlines In India Do We Need New Strategies?? Introduction The liberalization of aviation industry in India has precipitated the boom for domestic & international passenger carriers. The domestic passengers & cargo traffic recorded a growth rate of 20% & 8.5%. The Airport Authority of India manages total 119 airports in the country which includes 7 international airports‚ 94 airports & 28 civil enclaves. The four airports are under PPP Greenfield airports i.e. Delhi
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Low cost airlines History of low-cost airlines The idea of LCC originated in the US. Founded in Dallas Texas on June 18‚ 1971 by Herb Kelleher‚ Southwest Airlines offered tickets that worked out to be cheaper than a car or coach ride. It is the fourth largest US airline in terms of domestic customers carried annually. It has been profitable every year since 1973. Low cost airlines in India But a booming economy‚ a congested and crumbling train network and the emergence of low-cost carriers
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1 Summary Low-cost carriers have been established for many years. A model for a low-cost airline is described‚ derived from the operations of several such carriers. The models followed by the three main low-cost carriers in the UK‚ Ryanair‚ easyJet and Go are then outlined. The impact of the differences between these models is then assessed to see how they affect the cost base and productivity of the airlines. Finally‚ it is suggested that Ryanair’s model is most suited for the current conditions
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MODULE 1 AN INTRODUCTION TO STRATEGY & LEADERSHIP 1.7 – 1.14 What are the ways strategies can be developed? Approaches to understanding strategy: ❖ Rational - based on a model in which the conception and execution of strategy are treated as discrete‚ sequential activities. Chandler (1962) defined strategies as a straightforward process made up of two chronological activities. The following steps are typical of the method employed in this approach: 1. The establishment
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service (Rothaermel‚ 2017). A cost- leadership strategy creates the same or similar value for customers by delivering products and services at a lower cost than its competitors (Rothaermel‚ 2017). A cost leadership example would be Wal-Mart. Wal-Mart strategy is to provide a higher quality of products and services to its customers at a lower cost. Wal-Mart supply chain management is to engage with its suppliers to match products at the best affordable and lowest cost to meet the needs of its customers
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Best-Cost Strategy VS Low-Low Cost Strategy Q1: What is the difference between best-cost strategy and low-cost strategy? Best-cost strategy is when the company makes an upscale product at a lower price which in turn gives more value to customers in exchange of money. This means that the strategy involves focusing towards customers who are value-conscious and are willing to pay money in exchange of a good that has upscale features. Low-cost strategy focuses on niche customers. They sell their
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