In: Business and Management

Submitted By yogeshclotlikar
Words 4079
Pages 17
Indian Airline Industry

Indian aviation industry has been ruled by the two state airlines: Air India and Indian Airlines for quite a while. Till 1990 there were very strict rules for the new entrants on operating their air taxis. No private carrier was allowed to fly more than 700 Kms at a stretch. The government disapproved the privatisation of the state airlines despite the losses incurred by them. For 40 years the 2 airlines ruled the Indian aviation industry. It was only in 1990-1991 that the “open skies” policy was introduced were scheduling restrictions were lifted from private airlines. (Mhatre, 1993)

The liberalisation boosted a number of airlines in the market. Some of the early entrants were East West airlines, Modiluft, Jet airways, Air Sahara, Damania Airways etc. The private airline industry also got a boost because of the state airline pilot going on strike helped them gain customer base. In the middle of 1990s there was an opportunity for a huge expansion of air traffic in India. The government's economic survey predicted 12-14% growth. Unfortunately most of the airlines were unsuccessful either due to legal battles or a bad professional management. The two players who survived and sustained in the market were Jet Airways and Air Sahara. (Mhatre, 2000)

Since 1996 Jet Airways has strengthened its spot to become the No. 1 private carrier in India, giving state-owned Indian Airlines a run for its money. (Mhatre, 1997)
It continued to be the market leader with Indian airlines and Air Sahara behind. The market was slow and the airlines had ups and downs with regulations.

Changes in the industry over the years

➢ Deregulation and liberalisation: The state airlines controlled the market for 40 years but when they were not able to fulfil the desired demand of the customers and the continuously occurring losses to the government due to them…...

Similar Documents

Ebay's Strtegy in China

...Q1. EBAY’s choice of market entry strategy for china Advantages • Reducing risk – Acquiring 33% of the company for 30M$ allows a slow and gradual entrance to the Chinese market. –After assuring success, the value had grown by 2.5 times, with a market share of 85%, they acquired the rest of the company for 150M$. • Established domestic company – EachNet was a significant player in the Chinese online auction market and controlled more than 50% of the market share. EachNet was the Chinese EBAY, with sensitivity to differences between the US and Chinese market. • Using well founded company with hard resources in china – Warehouses, shipping company, contracts with local supplier Etc. This will let Ebay, a smoother entrance to the market. Disadvantages • Trust issues – The Chinese customers hadhard time trusting new foreign companies, changing the brand name to EBAY EachNet emphasis this fact. • Chinese/ US culture difference – The Americans executives had a hard time adjusting to Chinese way of doing things. For example: service that was offered to the customers was a DIY, where the Chinese expected a service hotline. • “be first of nothing”, EBAY’s usual strategy, was not implemented , they didn’t have the experience nor control they were used to. Q2. Potential benefits and risks of the joint venture with TOM online: Benefits • Connections – In china connections to officials are very important for business. TOM’s biggest shareholder was......

Words: 849 - Pages: 4


...- Collana Working Paper n. 1/2009 region. Benetton has no formal agreement with the franchisees, which does not need to pay any royalties (ICFAI, 2008). Benetton collects information about sales and customer preferences directly from its outlets and the agents, connected with franchisees. In this way the distorted impact of information from POS on upward supply chain is reduced with the risk of bullwhip effect (Steckel et al.). Fig. 6 - Benetton’s strategic map 400 contractors and subcontractors Other suppliers BENETTON Global Distribution Centres ( Agents (more than 80) ( Shops (around 6000) (Source: adapted from Jarillo, 2001) 3. Benetton’s position in the supply network and a critical review of its supply chain strtegy 3.1 Review of the literature Nowadays, firms are involved in broader and more interlinked networks of suppliers and customers often on a global scale and win their rivals more with a good supply network management rather than through marketing strategies (Steckel et al., 2004). The complexities of the supply chain network dynamics have been deeply analyzed by researchers, who defined the “Bullwhip effect” as its first law (Motwani et al., 1998). Order variability increases as orders move upstream along the supply chain (Kouvelis et al., 2006), generating cost inefficiencies due to alternated periods of inventory surpluses and stockouts. Lee et al. (1997) has divided Bullwhip effect causes in four categories: informational efficiencies;......

Words: 5604 - Pages: 23

Business Stratigies

...^18-What Are The New Product Pricing Stratigies ??? A-Price Skimming:1-Some Consumers Are Willing To Pay a High Price For An Innovative Product,Either Because Of Its Novelty Or Because Of The Prestige Or StatuS That Ownership Confers. Price Skimming Is The Strategy Of Charging The Highest-Possible Price For Product During The Introduction Stage Of Its Life Cycle 2- The Seller Essentially "Skims The Cream" Off The Markets Which Helps To Recover More Quickly The High Costs oF Research And Development 3-The Greatest Disadvantage Is That a Skimming Price May Make The Product Appear Lucreative To Potential Competitors,Who May Then Attempt To Enter That Market B-Penetration Pricing:1-At The Opposite Extreme,Penetration Pricing Is The Strtegy Of Setting a Low Price For a New Product 2-The Idea Is To Earn a Large Market Share For The Product Quickly. The Seller Hopes That This Approach Will Sell More Units During The Early Life-Cycle Stages And Thus Discourage Competitors From Entering The Market 3-A disadvantage Of Penetration Pricing Is That It Places A Firm In A Less Flexible Positin.It Is More Difficult To Raise Prices Significantly Than Its To Lower Them ^21-Define And Explain The Advertising Five Principal Media Of Advertising? Ans-Advertising Is The Process Of Communicating Persuasive Information About a Product To Target Markets By Mean Of The Written And Spoken Word,And By Visual Material By Definition The Process Excludes Personal Selling ......

Words: 337 - Pages: 2

External Factors in Organaization

...sector banks, government agencies and non-government institutions for extending their support in your company's growth and development. 4.2. potential options for strategy plan I thank your company's valued business stakeholders namely vendors, customers, strategic alliance partners and business associates for their exceptional support during difficult times, in accomplishing our business plans. Most importantly, I acknowledge the critical role played by the employees whose contribution to your company’s business growth has been paramount. On behalf of the Board, I would like to thank all the shareholders for their unstinted support in helping your company enhance its technological and business strengths and remain on the growth path. 4.3.strtegy plan includes resorce implication: n the API (Active Pharmaceutical Ingredients) segment, your company increased its cumulative US DMF filing count to 82. The break-up of the total filings is: 30 in the cephalosporin Segment, 39 in NPNC segment, 2 in the betalactam segment and 11 in the carbapenems segment. The cumulative filings of CoS (Certificate of Suitability) for the European market stood at 20 which includes 13 in cephalosporin segment, 6 in the NPNC segment and 1 in the betalactam segment. With a robust product development pipeline, your Company's filing and approval count is poised to increase in the coming months and quarters. 5.1. organizational Values: Most organisations are mostly driven by strategies. We are also......

Words: 2406 - Pages: 10

Sennheiser Viral Marketing Strategy

...VIRAL MARKETING STRATEGY ON SENNHEISER PREPARED BY HARSHAD MAHAJAN KETAN CHOUGULE LAVKUMAR SUTHAR Index 1. ABSTRACT 2. IMPETUS 3. DESCRIPTION OF A COMPANY 4. ACTUAL MARKETING CONCEPT 5. TARGET GROUP 6. VIRAL MARKETING STRTEGY 7. POSSIBLE POTENTIAL 8. MARKETING CHANNELS 9. RECOMMENDATIONS ABSTRACT Sennheiser is a German audio company, which produce headphones, microphones and other electronic accessories. They have a rich history and have maintained substantial position in market till now. Usage of effective marketing strategies has helped them to keep their market during recession period. People at Sennheiser say that ‘They are not obsessed with image, they are obsessed with sound’. This obsession has motivated them to be innovative in their respective field and provide premium quality products to their customers. As a result, they have a loyal customer base. Unique and funny content in their marketing methods creates interest in customers. Sennheiser arranges various marketing campaign, in which users can actively take part. This way they can make direct connection to customers and know customers demands. Social media is also important part of marketing. Sennheiser is also active on various social media sites, which is really helpful to target young people. In this report how Sennheiser can expand their customer base using effective viral marketing strategy and meet change in......

Words: 1995 - Pages: 8


...strategy. Airtel Bangladesh follows economy pricing strategy to attract the subscriber . Teltalk is offering country‟s lowest call charge which indicates that they are trying to take position in the market. They are following penetration pricing strategy. They also get the result of it. According to the data of last few months Teletalk has the highest growth in the market. Off- Net Tariff Rate per 10 seconds Grameenphone Banglalink Robi Airtel BD Citycell Teletalk Axiata Tariff 15 Paisa 14 Paisa 15 Paisa 13.1 Paisa 14 Paisa 16 Paisa Package Nishchinto Desh Goti 36 Kotha Citycell Projonmo One 3G Name Pricing Economic Economic Economic Penetration Economic Strtegy 51 | P a g e Comparative Analysis of Teletalk Bangladesh Limited Economic It can be seen that pricing for on-net and off-net packages are almost the same. This may be because operators are trying to simplify their packages and not overwhelm their customers with numbers. Here, except Airtel all the operators are using economic pricing strategy. Because, all of them want to increase their subscriber. But, Airtel is using penetration pricing to enter into the prepaid market. Basically, Airtel target youth segment. Normally, youth segment consider price before call. For this reason, Airtel is using penetration pricing strategy. Postpaid Although the operators have different pricing for different packages, I have compared...

Words: 12963 - Pages: 52