...there are several airlines operating in South Africa. Previous years the domestic airlines consisted of SAA, Comair, Nationwide and Sunair. They charged high prices and customers didn’t have much of a choice but to fly with one of these airlines which makes Kulula’s arrival a welcome new alternative. Larger rivals (SAA) were threatened by Kulula’s arrival and did not want to lose market share. They immediately countered the threat posed by Kulula by launching their “red-eye” campaign which was quickly countered by Kulula’s red-eye campaign and to date a there is a low-intensity price war between SAA and Kulula. Kulula aggressively compete with other airlines through offering the cheapest flights possible in South Africa via their online booking system. No unwanted extras, no free food or drinks in an effort to grab more customers than other competitors. They have to keep their flights more than 80% full in order to turn a profit a very tall order if one consider that other low cost carriers have folded under the cost pressure. Kulula was also one of the first airlines to offer flights to Cape Town and Durban from Lanseria airport and this has secured them a huge percentage of these routes business. Threat of New Entrants: Airline Industry is a business which requires huge setup costs, thus large investment. Previously this industry might have very little threat of new entrants but today...
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...Table of contents Kulula.com, having embarked in the airlines industry since 2001 as a low cost carrier and with its strategic planning had determined and maintained the airlines profitability and good relationship with the customers, which is the main reason behind their success. Mission Simple, Honest, Great Fun and Inspirational being The Mission of Kulula.com has contributed to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride and company spirit. (Source : Jowell (2002); VOL 1 NO1|emerald emerging markets case studies|pg 19) Strategy Marketing strategies developed by Kulula.com has developed product differentiation and this creation has intimated a good relationship with the customers and has led to quality service at affordable price. Policies The policies of Kulula.com were formulated, keeping in mind to attain customer loyalty of present and potential customers and has successfully established its image in both the corporate and the commercial world, which has resulted with achieving 10% - 15% of the domestic market share in the aviation industry of South Africa. Philosophy Kulula.com’s committed philosophy of ‘Now anyone can fly in South Africa’ to achieve its goals and objectives and ensure uncompromising standards of safety, comfort, reliability & service to its valued Customer & partners. PESTEL (International, Demographical) Analysis As airline industry is a large and growing industry, “PESTEL Framework...
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...EXAM: MARKETING MANAGEMENT NO OF QUESTION: 2 DUE DATE: 5:00 p.m. 24th FEB 2013 TOTAL MARKS: 30 MARKS CASE STUDY: FLY MANGO | | |SPECIFIC INSTRUCTIONS: | |Read the attached case study: Fly Mango – affordable flying. This exam is based on the South African airline market and the position and | |role of low cost airlines in the market. You are welcome to gather additional information from relevant websites and industry sources. | . Fly Mango – affordable flying BACKGROUND Mango's first flight took to the skies on 15 November 2006 - 15 days after it was launched as the first true low-cost airline in South Africa. It was obviously what people had been waiting for, as during the first ten minutes of going live, the company's website recorded a record-breaking 15 000 booking requests, making it one of the biggest e-commerce events in South Africa's history. Living up to its mandate to make air travel more accessible to the millions of South Africans who have never been able to fly, the airline has entrenched its leadership status by pioneering a number of innovative special offers such as a R1 fare and successful daily lunchtime Happy Hour during June, among others. In fact, since its first flight, Mango has become...
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...Fastjet Airlines Words: Keith Mwanalushi Headwinds over South Africa In the past few years the South African domestic market has had a bumpy ride. The local airline industry has witnessed the demise of 10 out of 11 independent private airlines since deregulation in 1990. This raises the question as to how new entrants will survive. 22 FlightCom Magazine Fastjet; entering South African domestic market. A consistent theme across the global airline industry is one of poor return on investments; protected competition; low barriers to entry and the high status associated with owning an airline; an industry that is a soft target for taxes; volatile costs; labour issues as well as increased regulation. South Africa is no exception. “Airlines operating in the domestic South African market face both demand and cost pressures,” says Carlos Ozores, Principal at aviation consultants ICF SH&E. “On one hand, South Africa’s economy is growing very slowly by emerging market locally the industry is challenged by a small market; inexperienced new competitors with inadequate equipment distorting the market; regulatory oversight; monopoly suppliers; state-funded competition; challenges with fuel supply, as well as skill shortages. “The weak economy and poor consumer spend; high oil prices, excessive supplier charges and the weakening local currency all threaten the growth of local air travel. Controlling costs and increasing business ...
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...1: Routes to take in starting an internet travel company 1.1 The survival-base strategic route This route puts heavy emphasis on organisations being able to survive a hostile and highly competitive context. It does this through an emergent process, seeking out opportunities in strategy content as they occur. ”Lynch 5th edition p416 STRATEGIC MANAGEMENT” As explained by Brent Hobermanin the case study that this is a scale game and you’re always facing global competitions. The real success Is to attract enough customers more than your competitors to generate more sufficient business. And with small internet business the fixed costs of operations in the early days are small no expensive office premises, no major colour printers and brochure costs, direct contact with potential customers, etc. They are two mechanisms in operation 1 adaption to the environment 2 selections among those present for survival 1.2 Network base strategic route The network based strategic route forward explores the links and degree of co-operations present in related organisations and industries and places a value upon that degree of co-operation. ”Lynch 5th edition p429 STRATEGIC MANAGEMENT” They are two major aspects of networks from strategy perspective covered * Network Externalities Network externalities-these arises when an organisation is part of an external network that is seeking to standardise some aspect of operations across the industry. The key moment...
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...AirAsia - Low-cost concept http://www.airasia.com/my/en/corporate/irwhatislowcost.page Country Malaysia Language English Sign up / Login Web check-in Manage my booking AskAirAsia Search AirAsia Go Introduction Company overview Financial & statistics Whistleblowing Channel Analyst resources Airline 101 Bursa announcement IR FAQs How do I..? AskAirAsia Contact Us Pick A Seat Supersize my baggage Pre-book meals Self Check-In Earn BIGGIES What is low cost? In this section, we address the following subjects: History of the LCC How LCC can offer such low fares? Why can’t the full service carriers match LCC fares? How low cost fares are structured Common misconceptions on LCC History of the Low Cost Carrier (LCC) back to top The LCC boom began about 36 years ago when Southwest Airlines roam the skies of USA. Rollin King and Herb Kelleher got together and decided to start a different kind of airline with four set of principles: fly one type of aircraft to keep down engineering costs; keep overheads down; turnaround aircraft as quickly as possible; and abandon loyalty or air miles schemes. They began with one simple notion: “If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares and make darn sure they have a good time in doing so, people will fly your airline.” And you know what? They were right. Southwest Airlines is now the third largest airline in the world in terms of number...
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...1. Political a)Uniform of hostess: UMNO members wanted it to be more "Islamic" b)Some decisions are made by the govt (landing rights,services to certain routes,equity ownership); take the case of Subang for example, Airasia applied to use Subang as their hub, was turned down by the govt. Now the govt has allowed Firefly (a subsdiary of MAS) to operate from Subang. c)Political influence could also affect the HR policies of Airasia - recruitment and selection of staff do not necessarily be based on merits but also on the racial composition.. etc etc 2. Economics a)The rising cost of oil - impacts on operating costs b)Competition - more new low-cost airlines now c)Availability of funds - are financial institutions willing to provide financing for Airasia's investments. etc etc 3. Social a)The standards of living of people in destinations served by Airasia - they have the ability to pay for air travel b)Tastes and lifestyles of people - are they willing to fly on low-cost airlines? c)The nature of its workforce - will they be able to cope with the changes implemented in Airasia? Some of the staff are former employees of other full-service airlines; some of the old habits/norms are still with them.. etc etc 4. Technology a) Most of the bookings for Airasia is made through the internet.. The technology depends on the effectiveness of overall IT...
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