war for the sky analysis by giri

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

war for the sky analysis by giri

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