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PASSENGER AIR
TRANSPORTINDUSTRYA REPORT BY
MARY GRAZIELLYNN J. DE [email protected]
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STRATEGIC SEGMENTATION
SHORT &MEDIUM HAUL
LEISUREFLIGHT
SHORT &MEDIUM HAUL
BUSINESSFLIGHT
LONG HAULLEISUREFLIGHT
LONG HAULBUSINESS
FLIGHT
C U S T O M E R V
A R I A T I O N
LENGTH OF JOURNEY
SHORT &MEDIUM HAUL
LONGHAUL
L E I S U R E
F L Y E R
B U S
I N E S S
F L
Y E R
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STRATEGIC SEGMENTATION
2MAIN POINTS
CUSTOMER
VARIATION
LENGTH OF
JOURNEY
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STRATEGIC SEGMENTATION
CUSTOMER VARIATION LENGTH OF JOURNEY
BUSINESS VS LEISURE
MAIN DIFFERENCE BEINGIN THEIR ATTITUDE TOWARDS PRICE
SHORT & MEDIUM HAULVS LONG HAUL
DIFFERENT SERVICESOFFERED DEPENDING ON THE DURATION OF THE
FLIGHT SUCH AS IN-
FLIGHT FOOD &AMENITIES, AIRCRAFT TYPE, ETC.
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TRADITIONAL VS LOW COST TRADITIONAL
AIRLINES
LOW COST
AIRLINES
MAKES USE OF GLOBALDISTRIBUTION SYSTEMS
(HIGH COSTS FORDISTRIBUTION
USUALLY UNIONIZED ANDUSED TO BE FREE FROM
COMPETITION WITH OTHER TRADITIONAL CARRIERS
SELLS WITH THEIR PREMIUMIMAGE
MAKES USE MAINLY OF TELEPHONE AND INTERNET
COMMUNICATION FORDISTRIBUTION
SELLS WITH THEIR LOWPRICING
HAS LOWER COSTSCOMAPRED TO CARRIERS(MORE ON SHORT HAUL,
COST-EFFICIENTSYSTEMS,ETC.
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TRADITIONAL VS LOW COST TRADITIONAL
AIRLINES
LOW COST
AIRLINES
USED TO HOLD THE
INDUSTRY TO THEMSELVES
TARGETS BOTH LEISUREAND BUSINESS TRAVELLERS
OFFERS SHORT, MEDIUM,
AND LONG HAUL FLIGHTS
GETS PROFIT FROMBUSINESS CLASS FLIGHTS
NEWCOMERS TO THE INDUSTRY(DUE TO THE DEREGULATIONA
CT
TARGETS LEISURE TRAVELLERS(THOSE THAT ARE MORE COSTCONSCIOUS THAN BUSINESS
TRAVELLERS
USUALLY OFFERS SHORT ANDMEDIUM HAUL FLIGHTS ONLY
PROFITS FROM E!TRA CHARGESFROM SMALL SERVICES USED BY
THE CUSTOMER
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INDUSTRY ANALYSIS
SHORT HAUL
WESTERN EUROPEANFLIGHTS
LEISURE SEGMENT
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PORTER"S # FORCES
SUPPLIERS
ENTRANTS
CUSTOMERS
SUBSTITUTES
COMPETITIVERIVALRY
ENVIRONMEN
T
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COMPETITIVE RIVALRYC$%'))$* +%$* $+* *'/ +0'1 )
)*31'+)*. T4' 1''*3' $56$4 $/ 3$ 3+11)'1 +*%7)' %+8$1 3+11)'131'+' + '*'
+%$4'1'.
B$4 9)* $5 3+11)'1 $:'14) 9)* $5 ;)4.
<
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ENTRANTS T4' 31'+)$* $5 4'D'1'7+)$* A3
+$/' 5$1 '+)'1'*1+*3' )*$ 4')*710. H$/'='1,
3+)+ ) >7)' 47'+* ) 3$*)'1' $ 6'+ 47' 6+11)'1 $ '*10.
?
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CUSTOMERSC$-3$*3)$7 1+=''1 +1'$$9)* 5$1 1)3'
3$%'))='*'.W4)' 4' 67)*' 1+=''1'@'3 )*-;)4 7@710 + 4'0$ *$ +0 5$1 4')1 ;)4.
E+' $5 7' )* )1)67)$*34+**' ) + 7. L)9' 4+=)*1''*3' )* )*'1*' 1+=')', '3.
?
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SUBSTITUTESS76)7' +1' 4)4'' 1+)* +*
$%')%' 4' 67.H$/'='1 4'' %$'$5 1+*$1+)$* +1'
)%' 3$*7%)* +6'))*'@'*)='.
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SUPPLIERS T4'1' +1' $*0 /$ 7)'1 5$14' %+)* +)1+*' %$' +*>7)' + 5'/ 5$1 '*)*'. P1)3)* )
77+0 )' /)4 4' 3$%+*)'+* $ 4'1' ) *$ %734 $5 +1$6'%.
A)1$1 $ +1' )40 '
+33')6' 3$*)'1)* 4')*31'+' )* 3$%'))$*.
F7' 4+ $ 6' 4'' )* $1'1 $1'7+' 3$.
2
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ENVIRONMENT T4' E71$'+* U*)$* ) + 9'0+0'1 + $ /40 4'1' +1'
%$1' +)1)*' $+0. T4')1D'1'7+)$* A3 6+' $*4+ $5 4' U*)' S+'"+$/' 5$1 4' '*10 $5 4''
*'/ L$/ C$ C+11)'1. S$%'7$1 /+ $:'1' $ 4'%+* 1'1)3)$* /'1'''*'.
?
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PORTER"S # FORCES
2 SUPPLIERS
? ENTRANTS
? CUSTOMERS
SUBSTITUTES
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VALUE CHAIN
INBOUNDLOGISTICS
OPERATIONSOUTBOUNDLOGISTCS
MARKETING& SALES SERVICES
PROCUREMENT
RESEARCH & DEVELOPMENT
HUMAN RESOURCES MANAGEMENT
FIRM INFRASTRUCTURE
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FIRM
INFRASTRUCTURE
• T4' )*710 /$19/)4 + ' $5
+'*'1 +)131+51'+0 5$1 7'
• F)4 31'/ +* +:
• C$%%7*)3+)$*
0'% 5$17134+)* )39'
HUMAN RESOURCES
•
B$+1 $5 D)1'3$1• CEO, CFO, COO
• S+:
• I*-F)4 31'/
•
S+' +:
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RESEARCH & DEV
• T4' +)1)*' $ *$ $
4' 1''+134 5$1 4'+)131+5 %+*75+371)*.O*0 5$1 7'.
• B+)3 '34 0'%
7' 5$1 %+)*+)*)*4' ;)4 ++6+' +*)39' %+*+'%'*.
PROCUREMENT
• M$ )'% 1'>7)1'5$1 $'1+)$* ) $*'
/)4 $* )%'+1*'1.
• C+'1)* +* )*-;)4+%'*))' +1' 77+0
51$% )'1 3$%+*)'.• F7' ) 4)40
%+*+' 7' $ )'*))=)0
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INBOUND LOGISTICS
• M+9' 7' $5 0)'
%+*+'%'*($)%))* 1'='*7''1 ;)4 60 +87)*1)3'
•
M+)*'*+*3' $5 +*'• S+' & )39' ++
1+39)*
OPERATIONS
• F)4 1''1=+)$* $1
7134+'• F)4 6$+1)* +*
1$'1
• S$%')%' /)4
+))$*+ '1=)3' )9'1+=' $7*' +5'1;)
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OUTBOUND LOGISTICS
• B++' ')='10
• A5'1 ;)4 +)+*3'51$% +:
• A)131+5 34'39 +5'1;)4
MARKETING &SALES
• D'+ /)4 1''1=+)$*+* +'
• T+9' )*$3$*)'1+)$* 0)'%+*+'%'*.
SERVICES
• O:'1 '3$*$%0 +*67)*' 3+ '+
• S'1=)3' +* '1=)3'>7+)0 ''* $*3+
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FOCUS & OUTSOURCING
• C$*)'1)* 4' 4)4 3$711$7*)* 4' )*710,P1$371'%'* ) 4)40 '*))=' +*
+ 734 %7 6' 4+*' /)4 7%$3+1'
• M+19')* & S+' +* R&D 3+* 6'
$7$713' + ) %+0 3$ $$ %73451$% 4' 1% $ 4)1' +* 1+)*'3)+) $* 4' +1'+
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WHAT TO DO FOR MAJORS
• T4' %+8$1 +)1)*' +1' )* '' 1$76' )5 4'0$ *$ +1 *)* /+0 $ )**$=+' 4')13711'* $'1+)$*. P1)3' '*))=' 37$%'1
+1' %$ )9'0 $ /)34 $ LCC" + >7+)0$5 '1=)3' ) *$ $* 4' $ $5 4')1 ).
• T4' ''*'*3' $* 4' 67)*' 3+ 5$11'='*7' %+0 471 4' %+8$1 )* 4' $* 17*
'')* 4+ $%' 3$%+*)' +1' +$ 3$37)* 4')1 '%$0'' 67)*' 1+='.
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WHAT TO DO FOR MAJORS
• H)4'1 '3)'*30 )* +*' 1'+1+)$*3+* 6' $*' )* $1'1 $ )*31'+'$'1+)$* 4$71
• S0'% 3+* 6' )%)', ''3)+0/)4 4' '%'1'*3' $5 4' )*'1*' 4' 3$ )* 4' $6+ )1)67)$*
0'% 3+* 6' 37 $/0 +* 1'+3'/)4 + %$1' 1+3)3+ ++ 1+*5'1$7)$*
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