Kety Success Factors in the Airline Industry

KalulaQUESTION 1

Key Success Factors Within The Low Cost Airline Industry

FROM: Deon Schrenk – Student No. 72404671

COURSE: MBA 5921 – TMA 1

DATE: 14/08/2010

WORD LIMIT: 3000 WORDS

CONTENTS

1. Introduction

2. What do Customers Want?

3. How to survive the Competition

4. Key Success Factors

5. Strategic Group Map

6. References and Bibliography

1. Introduction

Customers expect all organizations to meet their minimum requirements in respect of the characteristics of the products or services provided.

These requirements can be viewed as the basic requirements to succeed within a given industry. The requirements could be based around considerations of functionality, quality, safety, delivery, benefits and price. It is these requirements that determine our key success factors.

Identifying the key success factors within the airline industry requires that we start by asking two questions.

* What to customers want?

* What does the airline need to do to survive the competition?

Firstly, to do this, some research is required regarding the customers of the airline. Who are these customers? What makes up the customer decision tree? And what are their needs? Once these questions have been answered it is possible to indentify the demand side Key Success Factors. Secondly, the questions about the competition need to be addressed. What drives the competition? How intense is the competition? What are the main dimensions of the competition? And how can we obtain a superior competitive position. Once the analysis of the competition has been completed, we can identify the Key Success Factors that are needed to support the answers to the original two questions.

2. What do Customers Want?

Research was conducted as to what customers wanted. The research focused on passengers flexibility, passengers expectations about comfort, the purpose of the flight as well as who was responsible for the payment of...