Case Study On New York Air Case
The strategy of NYA is to provide the airline services to the customers at the lowest prices as compared to the dominating airlines of the specific routes. This tactic or the business strategy is known as the low price strategy to increase the market share of the business. According to the scenario, the purchase of more airplane shows that the strategy is working on the routes.
The strategy of Eastern Airline is to provide the best possible services to their customers as compared to the NYA. Their prices are higher that NYA and Eastern Airline is providing the best services possible and can be classified as the ‘broad focus’ business strategy. The strategy of People Express is to capture the market share from the alternative destinations such as small airports near the main cities like New York and Washington. Their prices are low and they charge for the meals and drinks as per the order of customers. This business tactic can be classified as the ‘differentiation’ tactic because it is different from other aviation services.
The main strength of NYA is that their main source of finance is their parent company that is investing heavily in NYA for the leasing of airplanes. Another main strength of NYA is that at lower costs they are capturing the market share from the larger aviation companies. The main disadvantage of the NYA is that the NYA is paying pilots lower than the other aviation companies. Similarly, the other staff members are trained to perform different duties at the same time. Therefore, it is highly probable that in the future the turnover rate of employees will increase in the NYA.
The competitors of NYA must maintain their prices higher than the NYA because their main finance source is their parent company. It is highly probable that the weaknesses in NYA will cause problems in the near future to NYA.