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Pet Airways Ppt V1
 

Pet Airways Ppt V1

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  • http://www.americanpetproducts.org/press_industrytrends.asp
  • Guerrero, D. (2010) Pet Travel Statistics & Pet Travel Trends. Ark Animals. Retrieved from http://www.arkanimals.com/ark/pets_travel_statistics_trends.html
  • http://www.petrelocation.com/summer-pet-travel-survey
  • Bennet, L. (2010, January 14). Pet Industry Trends for 2010. Small Business Trends. Retrieved from http://smallbiztrends.com/2010/01/pet-industry-trends-for-2010.html
  • Guerrero, D. (2010) Pet Travel Statistics & Pet Travel Trends. Ark Animals. Retrieved from http://www.arkanimals.com/ark/pets_travel_statistics_trends.html
  • Adams, G. (2010, August 30). Four-Legged Friends, Five Star Treatment. The Independent. Retrieved November 7, 2010 from http://www.independent.co.uk/news/world/americas/fourlegged-friends-fivestar-treatment-2065496.html
  • http://spaz.ca/?p=175
  • Pug-nosed animals, such as Pekingese, Bulldogs or Persians, cannot travel in the cargo holds. Their short nasal passages make them especially vulnerable to oxygen deprivation and heat stroke.
  • Guerrero, D.L. (2008, December 4). Pet Airways: Pet Travel Reaches New Heights. Retrieved: http://www.arkanimals.com/2008/12/24/pet-airways-pet-travel-reaches-new-heights/
  • Kondro, W. (2010). Transport agency to examine airline pet travel policies. Canadian Medical Association Journal, 182 (6),E267-E268.Stanbrook, M.B., Kovesi, T., &Hébert, P.C. (2010). Pets in airplane cabins: an unnecessary allergic hazard. Canadian Medical Association Journal, 182 (5). Retrieved on November 7, 2010 from http://www.cmaj.ca/cgi/content/full/182/5/421?maxtoshow=&hits=10&RESULTFORMAT=1&title=Pets+in+airplane+cabins&andorexacttitle=and&andorexacttitleabs=and&andorexactfulltext=and&searchid=1&FIRSTINDEX=0&sortspec=date&fdate=1/1/2010&resourcetype=HWCIT,HWELTR
  • Yonan, J. (2010, October 22). Cargo Might Not Be Best Bet for your Pet. Star Tribune. Retrieved from http://www.startribune.com/lifestyle/105542183.html?page=1&c=y“American Airlines: Heat 'may have been a factor' in puppy deaths”. (2010, August 18).New York Daily News. Retrieved on November 7, 2010 from http://www.nydailynews.com/lifestyle/2010/08/18/2010-08-18_american_airlines_admits_that_heat_may_have_been_a_factor_in_seven_puppy_deaths.html
  • http://www.thirdamendment.com/animals.html
  • Sukanya, S. (2009, May 12). 2 pugs die on flight, owner to sue airline. The Times of India. Retrieved from http://timesofindia.indiatimes.com/city/delhi/2-pugs-die-on-flight-owner-to-sue-airline/articleshow/4511917.cms
  • Phillips, M. (2008, December 2008). Traveling with Your Bulldog? Airline Death Stats Show Pups at Risk. The Wall Street Journal Blogs. Retrieved from http://blogs.wsj.com/middleseat/2008/12/11/traveling-with-your-bulldog-airline-death-stats-show-pups-at-risk/
  • Mutzabaugh, B. (2010, August 5). Pet Safety Back in the News after 7 Puppies Die on American Flight. USA Today. Retrieved on November 7, 2010 from http://travel.usatoday.com/flights/post/2010/08/puppy-deaths-airline-flight/104317/1American Airlines: Heat 'may have been a factor' in puppy deaths. (2010, August 18) . New York Daily News. Retrieved on November 7, 2010 from http://www.nydailynews.com/lifestyle/2010/08/18/2010-08-18_american_airlines_admits_that_heat_may_have_been_a_factor_in_seven_puppy_deaths.html
  • Cat found hungry after 3 weeks in cargo hold. (2007, January 22). MSNNBC.com. Retrieved from http://www.msnbc.msn.com/id/16692478/ns/health-pet_health
  • Phillips, M. (2008, December 2008). Traveling with Your Bulldog? Airline Death Stats Show Pups at Risk. The Wall Street Journal Blogs. Retrieved from http://blogs.wsj.com/middleseat/2008/12/11/traveling-with-your-bulldog-airline-death-stats-show-pups-at-risk/
  • Itchmo: News For Dogs & Cats (2007, July 24). Atlanta airport employees still searching for missing cat. Retrieved from http://www.itchmo.com/atlanta-airport-employees-still-searching-for-missing-cat-1837
  • Pet Airways. (2010, August 13). SEC Filing Form 8-K. Retrieved November 5, 2010 from http://www.sec.gov/Archives/edgar/data/1346973/000114420410045178/v194402_8k.htm
  • Pet Airways. (2010, August 13). SEC Filing Form 8-K. Retrieved November 5, 2010 from http://www.sec.gov/Archives/edgar/data/1346973/000114420410045178/v194402_8k.htmReverse Acquisitionhttp://www.businessfinance.com/reverse-acquisition.htma private company purchases a company which is already traded publicly
  • Pet Airways. (2010, August 13). SEC Filing Form 8-K. Retrieved November 5, 2010 from http://www.sec.gov/Archives/edgar/data/1346973/000114420410045178/v194402_8k.htm
  • Samanta, A. (2009, July 12). Pet Airways – Taking Off in the Growing Pet Industry Vertical. Retrieved from http://www.stratelysis.com/2009/07/case-study-11-pet-airways-taking-off-in.html
  • US Departmentof Agriculture
  • Pet Airways (2010). How Pet Airways Flies Your Pet. Retrieved from http://petairways.com/content/how-pet-airways-flies-your-pet
  • Pet Airways (2010). Pet Airways Air Fares. Retrieved from http://petairways.com/content/pet-airways-air-fares
  • Guerrero, D.L. (2008, December 4). Pet Airways: Pet Travel Reaches New Heights. Retrieved: http://www.arkanimals.com/2008/12/24/pet-airways-pet-travel-reaches-new-heights/
  • American kennel clubCat fanciers association
  • Dickson, D. (2009, December 1). Home for the Holidays. Best Friends News. Retrieved on November 7, 2010 from http://news.bestfriends.org/index.cfm?page=news&mode=entry&entry=4C61C7B7-9E60-3AE8-6EC51BAE82B9F040
  • Pet Airways. (2010, August 13). SEC Filing Form 8-K. Retrieved November 5, 2010 from http://www.sec.gov/Archives/edgar/data/1346973/000114420410045178/v194402_8k.htm
  • Bogner, L. (2010, October 11). Pet Airways : Poised for a Fast Takeoff. In Corporate Profile Reports. Retrieved November 7, 2010, from http://www.cpreports.com/?p=570President, Bogner Business Associates LLC, Wall Street analyst and management consultant
  • Continental Airlines (2010).Traveling with Animals. Retrieved November 7, 2010 from http://www.continental.com/web/en-US/content/travel/animals/default.aspx
  • JetBlue Airways. (2010). AboutJetPaws. Retrieved on November 7, 2010 from http://www.jetblue.com/jetpaws/about.asp
  • Yonan, J. (2010, October 15). Pet Airways Tries for ‘A Better Way‘. The Washington Post. Retrieved on November 7, 2010 from http://www.washingtonpost.com/wp-dyn/content/article/2010/10/15/AR2010101502809.html
  • a well established company with a large customer's base and air fleet could be more efficient in their performance and therefore in a certain way realize economies of scale. This is a huge barrier for any company interested in entering this market as large investments into aircraft should be expected. You also need to find trained staff, fully equip all the planes, rent hangars, etc. This is a real threat as the customers are not forced to be loyal to the brand. They can choose from various providers by just-a-click-away change and do not hesitate to try another, new provider. There are no limitations in air transportation concerning intellectual property and therefore this results in no barriers for new entrants. The main distribution channel from airlines to customers is the Internet and therefore anyone can access and no control is performed. The other channels are individual and again of no restriction or limitation. So the power of this aspect is strong. increase the switching cost by loyalty programsBeginning in 1993, startups were eventually consolidated and incorporated into the major airline companies. “Eight of the 11 major airlinesdominating the industry in 1978 ended up filing for bankruptcy, merging with other carriers, or simply disappearing from the radar screen,”
  • many airlines providing similar service to their customers and therefore the customers could choose among them easily. With introduction of e-tickets choosing the company to fly with is a matter of 5minutes This is a high threat as the core of the product it the same for all the competitors: transport via air. However, we try to differentiate by additional services and providing high comfort to all segments of our customers. There are many substitutes to air travel but not with equal value to customers (more in the substitutes section). Switching to an alternative product (i.e. other ways of transportation - ground, water) is easy and requires no financial costs at all. But it could bring increased costs of time, money or comfort of travelling. And this rises with the distance travelled. Therefore this aspect is not of high influence. For long-distance travelling flying is the top means of transportation as it's the fastest and most comfortable way to reach the desired destination. Therefore it is of strategic importance because without air transport a lot of places would remain almost unreachable to the customer. But as for the close destinations, other means of transport could be considered.
  • Few airplanes (and airplanes parts) producers and therefore they could have strong power to control the air travel industry There are more than 200 airlines all over the world and despite some alliance organizations (such as IATA) we are all potential competitors. The power of this element is relatively high as the suppliers could afford losing one customer but the customer can't afford loosing the critical supplier (e.g. Boeing). Switching costs in air transport industry are mainly related to the fact of limited airplanes producers and to the machine a company already owns.
  • There is no actual substitute for air travelling in global scope but alternative means of transportation (trains, trucks, ships, cars etc.) could be used to provide similar service. These substitutes could be more convenient for local or near transportation but for overseas or holiday travelling as well as for fast cargo transportation air is the best option. The price might vary but customers don't evaluate the whole service just in terms of actual price paid but also in terms of implicit costs such as time saved, comfort of travelling etc.
  • There is not an easy way to differentiate from competition in this industry and the strategies of the competitors are very similar. They all use loyalty programs, they all conclude long-term contracts with travel agencies, online check-inAll the investments into aircraft and staff might make it difficult to leave the industry but it might get also very expensive to stay in the area when being unprofitable. In addition, planes are machines which are not company-specific and could be sold and further used by other airlines.
  • Samanta, A. (2009, July 12). Pet Airways – Taking Off in the Growing Pet Industry Vertical. Retrieved from http://www.stratelysis.com/2009/07/case-study-11-pet-airways-taking-off-in.html
  • Cannot pursue differentiation and low cost at the same time.Break the value-cost trade-off = creating new best-practice rulesValue-Cost Trade-off is the conventional belief that companies can either create greater value to customers at a higher cost, or create reasonable value at a lower cost. Here strategy is seen as making a choice between differentiation and low cost. In contrast, those who seek to create blue oceans pursue differentiation and low cost simultaneously. This enables them to create a dramatic leap in value for buyers and the company itself
  • 4 key questions to challenge an industry’s strategic logic and business model to create a new value curve
  • Supplementary analytic to the four actions frameworkPushes companies not only to ask all four questions but also to act on all four to create a new value curve
  • Pattern for creating blue oceansSix basic approaches to remaking market boundaries
  • Pet Travel. (2010). Pet Public Transportation. Retrieved from http://www.pettravel.com/passports_pubtrans.cfm
  • Normally, the meter clicks off at a rate of $2 a mile in the city, but cabbies and passengers are supposed to negotiate a fair price for trips outside the five boroughs.At the standard rate, the trip to Sedona would cost about $5,000 - plus another $5,000 for the return, said David Pollack, who puts out the Taxi Insider newspaper and is executive director of the Committee for Taxi Safety.Donohue, P.(2007, April 8). Take us to Arizona. NY Daily News. Retrieved from http://www.nydailynews.com/news/2007/04/08/2007-04-08_take_us_to_arizona.htmlhttp://tucsoncitizen.com/morgue/2007/04/16/48456-couple-two-cats-complete-2-500-mile-cab-ride/
  • A Match Made in the Sky: Pet Transport Soars to New Heightshttp://finance.yahoo.com/news/A-Match-Made-in-the-Sky-Pet-prnews-2570611050.html?x=0&.v=1
  • Bennet, L. (2010, January 14). Pet Industry Trends for 2010. Small Business Trends. Retrieved from http://smallbiztrends.com/2010/01/pet-industry-trends-for-2010.htmlAmerican Pet Products Association. (2010). Industry Statistics and Trends. Retrieved from http://www.americanpetproducts.org/press_industrytrends.asp

Pet Airways Ppt V1 Pet Airways Ppt V1 Presentation Transcript

  • According to the 2009/2010 National Pet Owners Survey, 62% of U.S. households own a pet, which equates to 71.4 millions homes
    Pet Ownership
    Number of U.S. Households that Own a Pet (millions)
    Bird 6.0Cat 38.2Dog 45.6Equine 3.9Freshwater Fish 13.3Saltwater Fish 0.7Reptile 4.7Small Animal                 5.3
  • People consider pets as part of the family
    Dogs are the most popular travel companions
    Pet travel increases during the summer, more families travel on vacation (Vehicle 76%, RVs 10%, Air 6%)
    Stay with friends/relatives 32%; pet-friendly hotels 29%
    Pet Travel Industry
  • Survey of 6,000 pet owners worldwide
    61% of pet owners choose to travel with their dogs
    33% of pet owners choose to travel with their cats
  • Daycare, sitting services, pet photography, etc.
    WebMD known for online human health information
    Expanding Services to Include Pets
  • Breakaway Adventures, a tour company that specializes in relaxed overseas getaways, invites people and their pooches on several different walking tours in France
    Expanding Services to Include Pets
  • Paradise Ranch – an upmarket resort which caters exclusively for extremely pampered canines
    Swimming lessons, surf boards
    Owners can log on to website to look at CCTV footage
    Petweds.com – animal matrimony specialists; “puptials”
    Pet-a-Porter – Harrods' Fashion Show for four-legged fashionistas
    Creating Services for Pets
  • Pet Passport Scheme (PETS) allows animals to travel easily between member countries without quarantine
    Originated in the UK and spread to other EU countries.
    Participating include the US, Canada, Australia and NZ
    Creating Services for Pets
  • Purchase your pet carrier a month in advance so your pet can get used to it
    A little pre-flight walking will keep your pet calm
    Always include contact info on your pet’s tag
    Use direct flights, travel on the same flight
    Pug-nosed animals cannot travel in the cargo holds. (oxygen deprivation and heat stroke)
    Small pets may travel with their owners only if stowed under the seat.
    Pets too big to fit under the seat are relegated to cargo and are treated as such.
    Air Travel Tips for Pets
  • Most airlines will only accept one or two pets per flight so if you don’t book early your pet might not be one of those animals.
    Cargo pet travel is not available when outside temperatures are below 45 degrees or above 85 degrees.
    Due to the lack of oxygen and temperature control in cargo holds, the most common causes of death to pets transported that way are suffocation and heat prostration.
    Several airlines (including Southwest, USA Air and Continental) have announced they will no longer accept pets on board
    Even if cargo is climate-controlled, when the cargo door closes, not humans to monitor your pet
    Use of tranquilizers is possible in some cases
    Air Travel Issues for Pets
  • One in ten people suffer an allergy to animals
    According to Canadian Transportation Agency: people with allergy to household pets can be considered persons with disabilities
    Such pet allergies constitute a disability under the World Health Organization’s International Classification of Functioning, Disability and Health
    CTA decision favouring 3 applicants:
    experience an allergic reaction that is significant enough to result in an inherent difficulty in executing a task or action (such as impaired breathing)
    The result of the applicant’s activity limitation (i.e., allergic reactions) when exposed to cats, he/she cannot travel in the same manner as passengers without cat allergies.”
    Air Travel Issues for Pets
  • According to US Dept of Transportation
    2 million pets travel by air each year
    1.65 million shipped in cargo holds
    Air Travel Issues for Pets
  • May 2005 to
    Aug 2010 Pet incidents
  • Jimmy and Batnu, healthy pugs 4 and 3 years old
    Jet Airways - Mumbai to Delhi, dogs dead upon arrival
    doctor confirmed that lack of oxygen could have caused the death; Jet Airways denied negligence
    2 pugs die on flight, owner to sue airline [Delhi]
    international advisories for shipping dogs clearly say that pug-nosed breeds like bulldogs, boxers and pugs should not travel by air as they have a breathing problems even on the ground and breathing becomes a little more difficult in flights.
  • Bradley, an English bulldog
    Travelling with his owners
    From LA to Honolulu
    The dog “was discovered deceased upon arrival of aircraft. No signs of distress on the animal and kennel was intact,”
    United Airlines
  • 14 Puppies travelling in the cargo hold from Tulsa (Oklahoma) to Chicago
    1 hour delay due to storms in Chicago
    Temperature already 86°F (30°C) and forecast to surpass 100°F in Tulsa that day
    7 puppies died after landing in Chicago
    Necropsies were inconclusive
    heat may have been a factor
    readings "at loading, pushback, take-off and arrival" were within the 85-degree limit
    Prior health problems
    Seven Puppies Die on American Airways
  • Seven Puppies Die on American Airways
  • Pumpkin escaped from her kennel
    Trapped in the cargo hold for 3 weeks, plane travelled to Asia, Germany, and all over the US
    United Airlines plans to fly 12-year-old "Pumpkin" back home — on the lap of an employee.
    United Airlines
  • Katya, a cat who managed to escape from her kennel
    “Passenger checked four cats in four kennels. On arrival one kennel was empty. Cat was found later same day at SEA airport and returned to owner next day 7Aug2008. Owner reported Katya had cut lip, chipped tooth and grease on back.”
    Northwest
  • Tiger’s cage fell from loading platform and the door opened. Cat bolted and wasn’t seen again
    The airline offered Tiger’s owner $1,520 in cash and $500 in travel vouchers for losing the Siberian mix
    Delta
  • Zoe – Jack Russell Terrier
    Dan Wiesel and Alysa Binder – Owners
    Weekend getaways had to be close to home
    She’s not a big dog, but a little too big to fit under the seat
    Loaded into the plane’s cargo hold
    “She's a very happy-go-lucky dog. But when she came out, she was shocked--not herself."
    What travel solution suits her perfectly?
    Can we convince airlines to treat pets better?
    Zoe’s Story
  • WELCOME THE NEW BREED OF
    PAWSENGERS
    Welcome to the first pet-only airline, where your pet travels in the cabin and receives personalized attention every 15 minutes. There’s restroom breaks, exercise, and even little packets of treats.
  • Pet Airways
  • airline carrier specifically designed for the comfortable, efficient transportation of pets
    founded in 2005 as Panther Air Cargo, LLC. a Florida Limited Partnership doing business as Pet Airways.
    researched the market, developed the business plan, and held preliminary discussions with airports, commercial airlines, numerous vendors and potential marketing partners
    Confirmed there is demand, created financial models, cost and pricing structure, developed website, reservations system and operational procedures
    Pet Airways: History
  • Commenced flight operations April 16, 2009
    Launch was covered by nearly every major broadcast media outlet: CNN, Fox & Friends, Good Morning America, The Today Show, Animal Planet
    Story covered by print media: USA Today, Cosmo, Entrepreneur, Shape, NY Times, LA Times
    Social and viral marketing: 22,000 Facebook members, over 5,000 Twitter followers, and over 140,000 views of the video commercial on YouTube
    August 13, 2010 Pet Airways became public through a reverse acquisition with American Antiquities Inc. (AAQS), name change effective Oct 26, 2010 (PAWS)
    Pet Airways: History
  • Currently, Pet Airways flies to
    New York (NJ,CT & Philadelphia)Washington DC/Baltimore AreaChicagoOmahaDenverPhoenixLos AngelesFt. LauderdaleAtlanta
    Destinations
  • Destinations
    DC
  • Hub Strategy - lease a plane from Suburban Air Freight, Inc. instead of a specially designed for pets (currently carries 40 pawsengers per flight)
    subcontract with Suburban Air Freight, Inc of Omaha NE. Pet Airways is not a Certified Air Carrier, but Suburban Air Freight is
    In-Flight Strategy – veterinary technicians add credibility; in-flight cabin is designed for maximum creature comfort.
    Pricing Strategy - high enough to generate sizeable margins, but reasonable based on the sensitivities of the company’s target customers.
    Pet Airways
  • Beechcraft 1900 is a twin turbo-prop
    Cabins specially equipped to ensure the safety and comfort
    Pets travel in individual carriers which are secured using proprietary safety system
    Hub Strategy
  • Pet attendants monitors pawsengers every 15 minutes
    No need to purchase a pet carrier. A USDA pet carrier is included in the fare
    Well-lit, temperature controlled, pressurized
    Administers special medication if required
    Special feeding arrangements if required (drinking and eating not recommended)
    Potty breaks
    In-Flight Strategy
  • Pet Airways Pawsenger Process
  • Pricing Strategy
  • As of July 31, 2010, total of 11 full time employees
    Executive Management: 3
    Managers: 2
    Pet Attendants: 6
    Veterinarians – 1 on corporate level + contract with local vets in each location
    Pet Attendants – Certified Veterinary Technicians. One on board each flight
    Customer Care Concierges – experienced in customer care and/or the hospitality industry.
    Employees
  • Pawprints - tracking system that allows pet parents to make reservations and track their pet’s travel via the web
    MyPawsClub -furry flyer bonus program; get discounts off purchases of pet supplies, pet medicines, pet health insurance, pet-friendly hotel stays, pet foods, and more.
    Pet Rescue – rescue pets adoption paper 15% discount
    Pet Airways Promos
  • Breeders
    For breeders or parents-to-be
    provide proof of litter, puppy or kitten registration with the AKC or CFA
    20% discount
    Agility Competitors
    Coming soon
    Search and Rescue Dogs
    Coming soon
    Pet Airways Promos
  • Partnership with Best Friends Animal Society
    No More Homeless Pets Campaign
    When space and scheduling allows they ask Best Friends if they have any animals who could use a lift
    For anybody who has ever looked longingly at the adoptable dogs/ cats on the Best Friends website, but couldn’t figure out how to bring them home
    Pet Airways Marketing and PR
  • in addition to the capital necessary, substantial planning, purchasing of assets, leasing of space, training of personnel, and licensing from several different governmental agencies
    Strong brand identity
    Fluctuating fuel costs
    Economic downturns in airline industry
    Adverse weather
    For the year ended December 31, 2009 Pet Airways incurred a loss of $1,218,707, and has incurred cumulative losses totalling $2,009,104 since inception
    Business Risks
  • Expand cities and flight frequencies
    Door-to-door limo service
    Lodging facilities for rest and relaxation before or after travel at airport
    Grooming, before or after travel.
    Veterinarian services to handle travel documentation requirements and other medical needs
    becomes an Advertising Platform for all types of Pet Products and Travel Products, with the ability to generate incremental advertising dollars.
    Future Prospects
  • Poised for significant expansion
    revenues growing by more than 50%/year during 2011-2015, with earnings increasing by more than 200%/year
    Stock price 50% appreciation from current levels
    AAQS ($2.40)—OTCBB6-12 MONTH PRICE TARGET: $3.50-$4.0018-24 MONTH UPSIDE POTENTIAL: $4.75-$5.00
    PET has a “specialty orientation”
    1.5-2.0 million pets fly in cargo holds each year in the U.S
    Potential outweighs the risks
    Analyst Report
  • Average Seat Mile (ASM) is a measure of an airline flight’s passenger carrying capacity
    Baltimore Washington International (BWI) to Republic Airport, Farming Dale, NY (FRG) would take 203 miles
    Key Ratios
  • Cost per Available Seat Mile (CASM) is expressed in cents; cost to operate each seat mile offered
    Key Ratios
    • Cost for each seat for Baltimore to New York would be
  • Revenue per Available Seat Mile expressed in cents received for each seat mile offered
    Key Ratios
  • Currently, no airline for pets
    Door-to-door ground transport for pets, such as Feathers and Fur Van Lines and Pro-Pet Transports (both based in Oregon), which make large, slow loops across the country, with trips that can last up to 10 days.
    Pet shippers – travel agents for pet owners, making all the flight arrangements for pets in the cargo holds of commercial airlines
    Competition
  • Cats, dogs, rabbits, birds
    Big animals travel as cargo
    PetSafepet program
    24-hour Live Animal Desk
    Online tracking
    Earn Miles with PetPass
    Weather conditions monitored
    Climate-controlled cargo
    Climate-controlled vehicles during transport
    Continental Airlines
  • Launched just after Pet Airways was launched
    Accepts only small cats and dogs in cabin
    Only 4 pets per flight, first come first serve
    Pet + carrier = max 20 pounds
    No online bookings, call only
    Counts as one carry on item
    JetPaws pet program – tips and tools
    Bag tag
    Travel Petiquette
    Mileage points
    Welcome email
    JetBlue Airways
  • Cosmopolitan includes Pet Airways in a list of "8 Awesome New Jobs.“
    As a pet attendant, you’ll take charge of animals at the pet lounges, dole out belly rubs and ear massages en route, and deliver them safely to their owners at the end of the trip
    Other jobs include Professional Tweeter, Speed Decorator
    Pet Airways in the News
  • Pet Airways in the News
  • Travel editor Joe Yonan and his dog Red went undercover if Pet Airways is indeed as good as it claims to be.
    Joe had poured over the sites FAQs, and a staff member called him days earlier to go over procedures: health certificate, accurate measurement (for crate selection purposes), discussion of Red's demeanor and crate training.
    The pilot himself gave a friendly greeting to Red and the lounge manager took Red to sniff around the lounge while Joe filled out paperwork
    When Red arrived a staff called up Joe to let him know that Red landed safely and can be picked up anytime
    Flight attendant was walking Red around when Joe arrived
    Staff asked for ID before releasing Red
    Pet Airways in the News
  • Behind the scenes tour after landing
    Flight attendant reads the notes next on crate, with weight, destination, and personality comments
    Went over which pets needed medication
    Took the dogs out to feed, water, and walk
    Made sure they had their “luggage” (bag of treats, food, T-shirt or pillowcase many owners had left so their scent could be put into the crate with their pet)
    Pet Airways in the News
  • Airline Deregulation Act [H]
    Highly saturated [L]
    Economies of scale (for profitable operations) [L]
    High initial investments and fixed costs [L]
    Low brand loyalty of customers [H]
    Protected intellectual property like patents, licenses etc. [H]
    Distribution channels easily accesible[H]
    High switching costs for customers [H]
    Little threat of new entrants surviving in the airline industry.
    Threat of New Entrants
  • The airline industry comprises a large number of small operators [H]
    The product is undifferentiated and can be replaced by substitutes [H]
    Switching to an alternative product is relatively simple and is not related to high costs [L]
    The product is of strategic importance for the customer [L]
    Power of Buyers
  • Fuel supply fluctuates
    Airframe source: Few – mainly Boeing and Airbus [H]
    The suppliers' customers are fragmented, so suppliers could afford losing one customer
    The switching costs from one supplier to another are high
    Power of Suppliers
  • Low brand loyalty of customers [H]
    High switching costs to other airline for customers [H]
    Switching costs between air travel and its substitutes are fairly low [L]
    will change according to the route, reason for travel and the customer-type.
    The relative price for performance of substitutes [M]
    Threat of Substitutes
  • There are many players providing same product [H]
    Players have similar strategies [H]
    Not much differentiation between players & their products, hence, there is much price competition [M]
    Low market growth rates (growth of a particular company is possible only at the expense of a competitor) [M]
    Barriers for exit are high [M]
    Mergers and acquisitions
    Rivalry of Existing Firms
  • target markets based on their current size and growth projections
    Large market = stable growth = high competition = consistent stream of customers
    entrepreneur in the growing pet industry, it is best to focus on a niche category segment, but execute a differentiated offering within that category segment
    The Market
  • Instead of competing with rivals in existing market, create unique offerings = Value Innovation
    Blue Ocean
    No-agreed on industry name
    Not directly competing with other airlines
    Pets travel with owners
    Create new best-practice rules
  • Strategy Canvas
    Jet Blue
    Pet Airways
  • The Four Actions Framework
  • Eliminate-Reduce-Raise-Create Grid
  • Six Paths Framework
  • Alternatives : bus, car, or train
    Substitutes: pet sitters; pet resorts
    Space between alternative industries provide opportunities for value creation
    Why do customers trade across them?
    Focus on key factors that lead buyers to trade across alternative industries
    Path 1: Look Across Alternative Industries
  • Amtrak does not allow pets except for service animals at the present time.
    Service animals are allowed on all trains and buses by law.
    Small dogs in enclosed carriers are allowed on the buses and light rail. You must be able to transport your dog and the carrier by yourself, and you need to hold the carrier on your lap. Noise or odor may give cause for refusal to transport the animal.
    Pet Public Transportation
  • Bob and Betty Matas did not want to transport their cats in an airplane cargo hold on the trip to their new home so instead hailed a cab for the trip 2,500 mile taxi cab ride from New York to Arizona
    Drove 10 hours a day for a $3,000 flat rate plus gas, meals and lodging
    Cleo the cat
  • Change the definition of pet travel
    People who like to travel with their pet
    People with large pets have to send their pets to cargo
    People with small pets can carry them in main cabin
    People who leave their pets at home
    Which factors determine customer’s decisions to trade up or down from one group or another
    Path 2: Look Across Strategic Groups Within Industries
  • Purchasers: pet owner, agility competitors
    Users: pets
    Influencers: pet products (PetMate, pet carrier maker), non-profit organizations, animal societies
    Shifting buyer groups can unlock new value
    Path 3: Look Across the Chain of Buyers
  • Untapped value is often hidden in complementary products or services
    More and more pet-friendly hotels add a perceived value
    Affects demand for their business
    What about a pet airline with a travel package?
    Path 4: Look Across Complementary Product and Service Offerings
  • Challenge the functional-emotional orientation of the industry to find new market space
    What elements can you strip out to make it functional
    What elements can be added to make it emotional
    Functional – move pet from point A to point B
    Emotional – safe and guilt-free
    Path 5: Look Across Functional or Emotional Appeal to Buyers
  • Looking at trends and how they impact the industry
    pet-related spending is recession proof
    Path6: Look Across Time
    Total U.S. Pet Industry Expenditures
    Year                 Billion
    2010                 $47.7 Est.
    2009                 $45.5
    2008                 $43.2
    2007                 $41.22006                 $38.5 2005                 $36.32004                 $34.42003                 $32.42002                 $29.52001                 $28.51998                 $231996                 $211994                 $17  
    Growth in the following:
    • pet products and supplies
    • pet services: grooming, lifestyle, day care
    • health, veterinary services
    • pet insurance
    • pet businesses and non-profits (PetsitUSA, pet relocation, pet resorts, pet fashion, etc)
    • Pet related blogs
  • Focus
    emphasizes on three factors: allowing animals in the main cabin, in-flight service, and safety.
    Divergence
    differentiate their profile from the industry’s average profile
    Compelling Tag Line
    First pet-only airline, where pets fly in the main cabin – not in cargo
    Qualities of a Blue Ocean Strategy