Management Case Solution for Indonesian Airlines to Compete Global
Service ManagementGarry 022.08.0004Dwitya 022.08.0011Primasatria 022.08.0037Fendy Ferdinand 022.08.0162
Difficultword = - Kind of task = strategy task Kind of method = 5W 1H Main problem = Indonesian’s airliner can’t compete well with foreign airliner
Analyze problem =1. What should the national airlines do to compete with foreigner?2. Why does the performance of the national airliners bad?3. Which competitive strategies should be implemented?4. When the airlines can be classified as a good airliner?5. Who are the target markets of national airlines?6. How national airliners improve their service strategy in order to compete with foreign airliner
Learning Objective = Describe the competitive strategy Formulate the new strategic service for the national airlines Describe the criteria of good airlines Understand how to develop barriers by national airlines
Competitive strategy Criteria of good airlines Formulating new strategic service vision for national airlines Barrier to our competitor to compete to our company
How a company competes in a particular business? Competitive strategy is concerned with how a company can gain a competitive advantage through a distinctive way of competing. Competitive strategy of airlines in Indonesia is the fact that the price is far cheaper than foreign airline companies.
Good Aircraft Utilization:1. Discipline in time scheduling for departure and arrival2. Discipline in time available for flying3. The price is appropriate for its service because it will relate with costumer perspective about the comperation between cost and price4. Type of service that given on the flight like hospitality, type of meals, drinks and snack, and also about the manner of the flight staff.5. The level of safety in the consumer’s baggage6. Good service managed by the administration in ticketing, flight schedules, and good service at the airport7. Have good high quality management control
Market segment Demography -> Middle and upper income. traveler, business people, holiday family Psychographic -> feeling more comfortable in using airlines service than other services.
Service Concept 1. Safety and trusty flight, discipline time scheduling, and good hospitality in service 2. Good arrangement in database system of booking and plotting of customer seat 3. Online/OTA method booking directly connected in whole country. We also give complete and clear information about our flight (fares, flight schedule, etc). 4. High technology and also with complete and good quality of supporting goods and facility on our plane.
Operating Strategy Our management will focus on operation management, and human resource management. aircraft maintenance (before flight, daily, weekly, monthly), of supporting goods and facilities, time scheduling in flight, and the booking and the payment system stewardess and steward serve as SOP, pilot inform flight situation large media to expose our service to inform to public about our high quality service. Word of mouth is the best way to build image of our Company in the marketplace (Tell a friend program/referral coupon). Financial plan quarterly, concern about maintenance and fuel cost
Service Delivery System To deliver our service to our costumer we need high quality of labor (job specification) and also high quality of technology (online booking and using new generation Oracle software as database for management information system). Provide extra flight to tourism spot at the high season (Idul Fitri, Summer and End year holiday).
The effective way to make a barrier to enter The industry is using differentiation because if using low cost strategy it to difficult because in airlines industry the expanse of our operational process is very high so if we need a high profit never fighting in low price because it will reduce our quality in airlines service and low cost airlines often un-trusted by customers.