war for the sky analysis by giri
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7/24/2019 War for the Sky Analysis by Giri
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SERVICES MARKETING
STUDY OF THE CASE AND ANALYSIS: WAR FOR THE SKY
Group:
Ajay Kumar S002
Giri K S023
Shrish Khare N062
Sunil Mathews N065
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BRIEF BACKGROUND
The case is about the cometiti!e strate"y an# challen"es $ace# in
the Air transortation %n#ustry o$ %n#ia& The era o$ liberali'ation an# ro-
cometition re"ime in the nineties saw the monooly o$ the national
carrier "ettin" thrashe# an# !arious ri!ate layers enterin" the %n#ustry&
(owe!er) insu$$icient in$rastructure) lac* o$ e+erience an# other "litches
$orce# these layers to ,uit the mar*et& A new hase starte# in the year
200) where $ew layers resorte# to a""ressi!e rice-#ri!en strate"y
an# romotions to cature the mar*et share& The case #iscusses the
#ri!in" strate"y o$ Tactics an# short-term success in Air South an# Sice
Air& The case also brin"s out the way Air .eccan o$$ere# cheaer air
tra!el by re#ucin" the $rills associate#) thereby $ocusin" on the
mar*etin" strate"y $ormulation $ramewor* an# alyin" strate"ic ser!ice
!ision concets&
THE INDUSTRY
The #omestic Air tra!el mar*et is "rowin" at /-01 er annum&
The economic) cultural an# sycholo"ical chan"es emer"in" in the
country ha!e create# a $a!ourable con#ition $or "rowth o$ the in#ustry&
The three bi" layers who #ominate the in#ustry an# the analysis o$ their
stren"ths an# wea*nesses can be tabulate# as $ollows-
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Airline n! i"#
$re!en"ilS"ren%"& We'ne##
B&r" Airline#
Go!ernment owne#
i""est layer in the
in#ustry&
(as the latest $leet o$
aircra$t
%ncrease# number o$
$li"hts 4 #estinations& i#est connections&
re,uency
Traine# manower
7+erience o$ $lyin"
%ma"e crisis) #ue to it
bein" a ublic sector
un#erta*in"&
8ac* o$ suerior ser!ice
,uality&
Se" Air()#
9hallen"e# the
monooly&
(as the latest $leet o$aircra$t
Secialises on the :;oy
o$ $lyin"
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The year 2003 also saw the arri!al o$ Air .eccan into the low cost
airline mar*et) which was no more than a oint to oint $erry) thus
enablin" cheaer air $ares to assen"ers& Air .eccan also resorte# to
201 more seats er aircra$t by cuttin" #own "allery sace to hol# $oot
trays&
STRATEGIC SERVICE VISION OF AIR DECCAN
The @ision o$ Air .eccan is to :Empower every Indian to fly& %ts
mission is :To demystify air travel in India by providing reliable, low cost
and safe travel to the common man by constantly driving down the air
fares as an ongoing mission& The tar"et mar*et $or Air .eccan has
been :Ber mi##le class $or short term an# lower mi##le class
a""ressi!ely in lon" term
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C#D No $ree caterin" on boar#
CeD Alternati!e re!enue channels
C$D 001 web enable# boo*in"s e tic*etin"
C"D 7nhance# cash $low mana"ement
Strate"ies Mo#el a#ote# by Air .eccan& Three strate"ic mo#els
ha!e been a#ote# by Air .eccan& The #etails are as un#er-
CaD 9ost 8ea#ershi Strate"y-
CiD Sin"le Air (ostess er $li"ht&
CiiD / seater aircra$t to lower maintenance an# ser!ice $ee&
CiiiD Bni,ue Jnline ?eser!ation system&
Ci!D No rills airline but $oo# be!era"e can be bou"ht insi#e
the aircra$t&
C!D =rices are almost 501 lower than the $ull ser!ice airlines&
CbD .i$$erentiation Strate"y-
CiD Sin"le =assen"er class system
CiiD Tie us with 9a$e 9o$$ee .ay) (=98 an# ?eliance eb
orl#
CiiiD =ro!i#es $li"hts e!en to the hinterlan#
Ci!D Allocation o$ rices to !arious ercenta"e o$ seats
CcD ocus Strate"y-
CiD re,uent business tra!elers
CiiD A9 train tra!elers
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BUILD SUSTAINABLE COM*ETITIVE ADVANTAGE + VALUE CHAIN
%n or#er to enable buil#in" a sustainable cometiti!e a#!anta"e)
the comany un#er too* the $ollowin" measures-
CaD ?enamin" $rom :Air .eccan< to :.eccan
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