Pegasus Asia Airlines Case Study

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Figure 5.1 – Assessment of influence of factors of the external and internal environment on creation of new air carrier (Source: developed by author) As a result of the carried-out analysis it is possible make a conclusion that presently the recommended direction of strategic development corresponds to a state when it is necessary to implement the weakness - opportunity strategy (mini – maxi) directed on minimization of weaknesses of the enterprise and use of opportunities of the market of air transportation. Namely, strategic recommendation: to implement leader strategy in expenses (optimization of expenses and increase in number of the transported passengers) with the subsequent transition to realization of strategy of diversification and…show more content…
To deliver this value proposition in a profitable way, Pegasus Asia Airlines will use key processes like short and medium haul flights, a standard fleet, low commissions to travel agencies, contract management with supplying companies and neighboring communities, no free meals, tough negotiations, high-powered incentives, word of mouth advertising, an economies of scale. It will also use key resources such as a standardized fleet of B-737s, a non-unionized workforce and spartan headquarters. Competitive Edge The followings are the strategic steps, which will distinguish the new company from its competitor Some innovative schemes should be adopted to attract the increasing number of small & medium business travelers. This would definitely enhance the market share and build brand image. The new company should expand into medium haul routes, with the same “no-frills” formula, thus adopting an offensive strategy rather than a defensive one. This will keep the traditional players busy protecting their turf and restrict their encroachment into the LCC market. High employee morale is key to customer retention. The business philosophy of the new company should be ‘smile, charge and serve’. Employee satisfaction and customer loyalty are invaluable for any business to succeed in the long
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