AIR DECCAN – Case Study on BLUE OCEAN STRATEGY By: Amit Sheth Gagan Pareek Sainatth Wagh Samir Daddikar
Features of Blue Ocean Strategy Create uncontested market space. Make the competition irrelevant. Create and Capture new demand. Align the whole system of the company’s activities in pursuit of differentiation and low cost.
How did Air Deccan create uncontested market space. Existing players (I A, Jet Airways, Sahara) Low Cost business model is based on following three policies:
Making competition irrelevant Targeting the unsatisfied customer. Introduction of “Dynafare”.
Create and Capture new demand Inspite of 150 million middle class, 3-4 millions travelled because of price affordability. 50 million rail travelers, approx 2 lakh travelled in the air condition coaches. Defined the target as Upper Class but marketed aggressively on lower middle class.
Product Differentiation & Low Cost Targeted Tier-2 cities. Ventured into new cities using new routes.