Monday, October 8, 2007
Plane Wreck-Question # 2 - Sandra Adams
The budget airlines are in definitely in a different strategic group than the major network airlines. The budget airlines are a more recent and up to date group that provide direct flights with little accommodations and cheap prices. This is very appealing to customers because many people are looking to get from A to B as fast as possible and as cheap as possible. The major networks have not transformed to keep up to date with the times. The major airlines are still catering to customers with old technology, high prices, many perks during the flights because they are very long, and extremely high prices. It is no surprise that the budget companies are making a profit and the major networks are not because of the different strategies they are using.
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Plane Wreck-Question #5 - Ronnie Vajdak
The budget airline companies have a strategy that is clearly more appealing to travelers than the older major network airlines. Customers' wants and needs change with time and the major airlines have to adapt to those changes. They have to analyze what these budget airlines are doing different, how they are advertising and what services they offer and don't offer. For example I like to travel on Jet Blue because each seat comes equipped with its own television set. I choose what I want to watch and it makes the flight a lot more entertaining and for some a little less stressful. I would also prefer to save a few bucks and not have food served on the plane.
By cutting operating costs the major airlines are heading in the right direction but they have not yet established any sort of competative advantage over their competition.
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