Aviation Strategy

Table of Contents

Critical factors
Development of Alternatives

Clear sky Airways discovered a new avenue of revenue increase by launch of its new In flight Entertainment   product with capabilities to include internet connectivity via WiFi into the global internet segment. The strategy needs to be redefined in view of the latest announcement by competitor DarkSwordAir about entering into a pact with Surfshop LLC-the principal vendor and proposed supplier for the WIFI application. There has been a major setback to the plans of taking the “First Mover Advantage” by this announcement. The Clear sky Airways has to deal with the new threat and define the best way forward. As it is found that company is facing the problem with change in customer’s preferences, by its competitor launching new services very soon, to sustain the market share, face the competition effectively and enable growth of the business it’s important to study the problem and take required steps as soon as possible.

The main problem is the sudden announcement of DarkSwordAir of acquisition of a controlling interest in Surfshop LLC, which was in talks with Clear sky Airways to provide the internet product with compatibility for Panasonic IFE system. DarkSwordAir intends to limit the product of Surfshop LLC to its own aircrafts for first two years. The company therefore faces a threat to its first mover advantage in the launch of internet enabled IFE (Inflight Entertainment) system as well as of losing an opportunity of increasing its revenue by around 45%. It may also cause a decline in the company’s revenue by the shifting of customers, wanting to experience the flight borne facility, from our client base to that of DarkSwordAir. The urgent call is to confront this new threat, need is to develop strategic options and deal in the best possible manner.

Critical factors:
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