This week there are 3 questions about the Kiwi Air case. Please pick one of the questions and answer it. The group's answers, will help you with this week’s mini-analysis assignment :) Aim to give an original answer or angle, or pick an question/area that others have not chosen. (See p.1 of the course notes for the case)
1. What features of the airline industry have affected KiwiAir’s competitive position?
There are two features which affected KIWI Airline’s competitive position. These are the deregulation of the skies and the introduction of cut price competitors.
ReplyDeleteThese features meant that KIWI Airlines were forced to change their competitive strategy. KIWI Airlines was no longer the leader of the industry as low cost competitors have taken the most profitable routes in domestic travel. In order to find a sustainable revenue stream KIWI Airline's had to find and change their competitive strategy to another competitve strategy that was not based on cost in order to once again be competitive.
(Even though the top of the blog says this blog belongs to Friday i am assuming because of the emails and annoucements on BB that this blog belongs to the Wednesday 11.30-12.30 RHG02 tut)
The features which have affected KiwiAir's competitive position in the airline industry include the deregulation of the skies, competitors offering a lower price seizing the opporuntiy on the most profitable routes, rising fuel prices, and the impact of the internet.
ReplyDeleteSince its inception in 1928 KIWI Airlines had been the largest and most preferred supplier of domestic airline travel in New Zealand. However the following factors contributed to KIWI Airline’s reduced market share. Deregulation of the industry caused new competitors to enter the market with a strategy of overall cost leadership as their competitive advantage. Increasing fuel costs also increased the airlines costs and made their size advantage somewhat of a liability. The impact of the internet on the airline industry also affected their competitive position.
ReplyDeleteFeatures of the airline industry that has affected Kiwi Airlines competitive postition is the deregulation of the airline industry, low cost competitors taking most profitable routes, shrinking domestic market, rising fuel prices and the impact of internet and market strategies of their cut price competitors.
ReplyDeleteThe four features that affected Kiwi Airline’s competitive position are
ReplyDelete• Deregulated Skies
• Cut prices competitors seizing advantage on the most profitable routes
• Rising Fuel Prices
• Impact of the internet
There were a few features of the airlines industry as to why Kiwi Airlines were affected. These include the deregulation of the airways and the cut-prices competitors making the most of the most profitable airways. The rising fuel prices and the uprising of the Internet also affected Kiwi Airlines.
ReplyDelete