Strategic Management
3rd Edition
ISBN: 9781259420474
Author: Frank T. Rothaermel The Nancy and Russell McDonough Chair; Professor of Strategy and Sloan Industry Studies Fellow
Publisher: McGraw-Hill Education
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Chapter 6.6, Problem 1CC
Summary Introduction
Case summary:
The case deals with finding a new blue ocean strategy for J airways. In 2000, J airways were founded by Person DN. Person DN would like to set up a blue ocean strategy which would use value-innovation to combine cost-leadership and differentiation activities. In 1993, Company M is the lowest-fare airline that has many cost-saving practices, which was purchased by Company S. The primary goal of Person DN is to provide service with even lower cost than Company S.
Company J has lowered its operating cost and enhanced its differential appeal. The features of Company J airways are satellite radio, free programming and movie, leather seats, high-speed Wi-Fi, friendly onboard service, and free bag checking. The challenges incurred were profit and market share. Hence, Company J could not able to sustain a blue ocean strategy.
To determine: Why Company J could not able to sustain a blue ocean strategy.
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