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Reponse to Strategic Innovation

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IIdea: Response to Strategic Innovation
IExample: Jet Airways
In 2003, India’s first low cost carrier Deccan Air was launched to counter the Jet Airways (India’ largest and best-in class Full Service Carrier). Offering point-to-point service, no meals, hassle free check-ins and online booking, these carriers fast grabbed a big pie of the Indian airline market. Falling in the left-top quadrant of response matrix, Jet Airways thought it not be a viable business model even as LCC players made huge losses at the expense of market share. However, in 2007 even as most of the growth was coming from low fare segment, Jet decided to acquire Air Sahara and brand it as Jet Lite to compete as a low cost carrier. At this point, it adopted this business model innovation and created a separate internal business unit to counter the threat. However, this airline within an airline model didn’t work as it involved different cultures, processes, resources and capital investments. Finally, Jet launched its own LCC brand Jet Konnect to project it as a low cost brand alongside Jet Lite. Both the LCC brands have led to confused business operations and eventually leading to moral conflicts in employees. Recently, Jet has merged the two LCC brands under the name Jet Konnect. This case is a perfect example of how despite being the No. 1 player in the airline industry, Jet has not yet managed to successfully respond to a strategic business innovation by new

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