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Transcript of IBSM FINAL
for Your Attention
Q & A
The entry barrier
The brand equity
The ability to control access
Buyer concentration to firm concentration ratio
Buyer switching costs relative to firm switching costs
Buyer information availability
The degree of bargaining leverage／backward integrate
Availability of existing substitute products
Buyer price sensitivity
Buyer propensity to substitute
Relative price performance of substitute
Buyer switching costs
In the degree of differentiation of raw material inputs :
Supplier concentration :
The degree of bargaining leverage／forward integrate :
The number of existing competitors:
Industry growth rate:
Exit barriers :
Brand equity :
The demand of advertising :
1. Have their
own IT systems
3. Do not provide
4. They just set up
>>> raise the amount of passenger load.
Aspects of hauling luggage
6. The mode of flight are all
Shorten boarding time
to increase flights of aircrafts
The doldrums' environment make development of low-cost airlines in future very promising.
corporate philosophy: “Now Everyone Can Fly.”
one of the award winning and largest low fare airlines in the Asia
AirAsia operates over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia
Net Profit Margin:
Every year: increasing the size of the company,
the number of passengers carried growing steadily
Outsourcing maintenance by third parties
Provide low-cost carrier model(LCC)
Web-based booking system
Direct sales by website and calls center
Cost leadership strategy
Quick turnaround of planes makes Airasia can get higher seat load factors
YMS and APS
and cost economies
Successfully enter the Indian market
The lots orders of planes make airports crowded and the competition between low-cost airlines become much fiercer.
If Airasia wants to expand in a rapid way and reduce its competitors…
Promote the concentration of the industries.
Reduce the competitors in the market.
Raise the market shares.
Become bigger and stronger to compete with other competitors.
won’t cause destruction to both sides
Not only reduces the competitors,
but also make itself stronger to compete other emerging airlines
1971, Established by Rollin King and Herb Kelleher and Set the headquarter in Texas.
1979, Set automates in ten airports
1995, the first airline company using the non-ticket system
From 1973, Southwest Airlines keep profits steadily and have the 86 million every average year
Net Profit decline 55% because of the fuel cost rising at the first quarter
Get stable profit and the load factor increase every year
Convenient way to buy ticket
3.Facebook , Twitter
1.Lower operation cost
2.Reduce human cost
1.Air ticket Revenue
Fuel cost raised in 2011
Ticket price increase 39%
Not promoting their low ticket price
1.Lower the price slightly to cater to their
2.Try to strategic alliance to provide more
3.Keep the brand image
Developing the long haul market
1.Merger with other airline
2. Increase the point-to point
3. Duplicate their advantage of cost-
one of the first civil aviation group in China.
the second civil aviation which have the international air route.
The chairman is Wang chang whua.
2005, the first plan of Spring airline took off.
“ making everybody both can take the plan”
Spring airline continuously make the profit in 2006-2008:
In 2005 occur
In 2006, profitability over
In 2007, total operating income reached
In 2008, revenue increased to
Spring Airlines is always still able to achieve profitability
In December 2008, Spring Airlines’ will cost 20 billion in human resources.
Spring Airlines has a powerful parent company
single type aircraft
Owned distribution and DOC
low selling cost
Controlling the cost
Single type aircraft
Owned distribution and DOC
Everyone can be able to fly
Grass - roots airlines
Early paid the ticket, customer can choose the seat
Official website Seat Control & Sales System
Ticket site at airport
Three customer's segment
Online order system
Own distribution & departure control
The in-flight marketing activities called "air-mall"
6.7% of the total amount
less operating experience and small scale
Civil aviation administration of china (CAAC)
high investment, high risk and low revenue
the financing pressure is high