Mali Flybaboo

3) Flybaboo’s founders observed as an initial stage of idea recognition pretty well because he followed every rule of entrepreneurship and economy. There are four rules for making an idea real. These are economic, social, technological and political environment.

First of all if we look at the econimic issues, flybaboofounders found severalventure capitals to invest their ideas. This made them have an economic power. With the help of money they had the chance to make their wishes turn to life. Pricing was like this:

Secondly if we look at the social issues, communication strategy was one of the most important thing for them in the social issues. Their Networks was very big and qualified. Cook used billboards and newspapers to make people know about the company.

Thirdly if we look at the technological issues, technology means fuel saving and cheap flight for an aircraft company. Also putting more destinations in the routs is a point of technology. By the time flybaboo increased the destination routes to 20 places. İt seems like they are going to increase it more. Also because of the tech they had the chance to fly upper than 20000 feet thats why they could go faster.

2) If we analyze the airline industry by using porters five forces firstly we should know the 5 forces; -threat of new entrants –threat of substitute products or services – barganing power of customers –bargaining power of suppliers-intensity of competitive rivalry.

- threat of new entrants: in these days most of the airline companies have the same planes and same technology thats why a company who offers a good price will get the customers thats why wehn a new company enters the competitive race the threat of the other companies will increase.

- barganing power of customers: bargaining power of customer is not effective because prices are not flexable. Thats why its not that important

- bargaining power of suppliers: this is very important because producing an airplane is very expensive and...