Strategic Management Scenario Project (GEA 2)

Strategic Management Scenario: Assume you work for the Chief Executive Officer (CEO) of a moderate size US airline with strong balance sheet. As a strategic analyst, you have been assigned thetask of assessing a new market. Currently your company utilizes a best-cost competitive strategy utilizing moderate-to-low airfare pricing while still providing some of the basics not included with all airlines (one free checked bag, free snack and non-alcoholic beverage, etc.). As part of your firm's growth strategy, the CEO would like you to assess expanding into the charter airline industry based on the seemingly popular trend of private air travel. Because this is a potential new market for your company, you will need to consider many strategic issues.

For example, is this an attractive market to enter? If you enter the new market, what competitive strategy should your company use to compete in this new industry? Related to that, you will need to consider whether a new brand name is needed for this potential product division. Also, how would you market and sell the service? These and many other factors will require research and consideration.

Pre-Report Analysis 1) Using cross discipline knowledge you have gained from prior courses, analyze the charter airline industry and describe what is required to compete successfully. This should include discussing the overall growth of the market, the varying segments of the market (based on sales or volume), top companies and strategies used, and if available, the demographics of the buyers in the passenger segment, etc..