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Business Strategy College - Case Study Example

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Business strategy is a never ending complicated risk -based business scene. Business strategy is the direction and scope of an organization over a long period of time. Its main goal is to achieve a clear advantage over its competitors set in a volatile environment…
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Business Strategy College Case Study
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Download file to see previous pages The OAG official airline guide data taken from the website shows a startling low cast data. Its study of low cost budget airline data released its report dated September 19, 2007 shows startling facts. The data indicates that that budget airline capacity has doubled in the last four years. The low cost growth of the same industry has increased by twenty percent. The study also shows that Europe, which includes the United Kingdom, is leading the world in the low cost /network balance scheme. Clearly, the OAG data shows a startling low cast data.
The same OAG study covers a wide airline passenger seat sector. The study covers eleven million extra seats in over sixty six thousand more flights operated by the low cost sector. The industry shows a year on year increase of twenty four percent and twenty percent respectively. The financial data shows that the 2007 low cost flights comprise a higher sixteen percent of the total available airline seats in Europe for the prior accounting period. The prior period only generated a fourteen percent low cost comparative figure. In addition, the 2007 financial data also shows that twenty percent of the total worldwide airline covers is given to low cost flights. This is higher than the seventeen percent financial data of the prior year, 2006. Evidently, the OAG study covers a wide airline passenger seat sector. ...
Three of the major forces in the European, Low -cost, budget airline sector are rivalry among competing sellers in the air travel industry, market attempts of companies in other industries to win customers and the potential entry of new air travel competitors.

Rivalry among competing sellers in the air travel industry. There is s strong rivalry among the competing sellers in the low cost budget airline sectors. The air transportation industry is changing fundamentally. Low cost air passenger carriers are now slowly killing the competition. This long term trend has undermined the industry's prior structure, procedures, business models and these changes have consequences for airport access. Airlines and airports now have neither the money nor the appetite for grandiose projects. While massive airport buildings around the world planned many years ago are still being inaugurated. These inaugurated airports include Heathrow airport in London, Suvarnabhumi airport in Bangkok, Barajas airport in Madrid, a Singapore airport and a Toronto airport. The current trend in the airline industry is to focus on low -cost airport buildings and facilities. Boston had built a $ 400 million passenger building to Delta air's specifications. It was opened shortly before the airline went bankrupt. As Delta air buckles under the pressure of shrinking its network and services, another competitor must be entertained to take over the leased airport spaces vacated by Delta Air. Low cost airline companies easily fit this description. Undoubtedly, there is strong rivalry among the competing sellers in the low cost budget airline sectors (De Neufville 2006).

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