Comprehensive Analysis of Sa Low-Cost Airline Industry

2861 words 12 pages

1.1 Key Success Factors in the low-cost airline industry 3
1.2 Strategic group map example in the low-cost airline industry 5

2.0 Comprehensive analysis of SA low-cost airline industry 6
2.1 Buyer Power 10
2.2 Supplier Power 10
2.3 Substitutes 10
2.4 Rivalry 10
2.5 New Entrants 11
2.5.1 Government Policy barriers 11
2.5.2 Capital Requirements 11
2.5.3 Economies of Scale 11
2.6 Competitive Advantage 12
2.7 SWOT analysis 13
2.8 Conclusion 14 References 16

Question 1

1.1 Key success factors in the low-cost airline industries

The low-cost airline industry has undergone cold season since terrorist attack in
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The findings reflect the costs associated with the big three’s approach to quality differentiation as they all provide significant amenities beyond flight service and have invested heavily in the development of expansive domestic and international operations to differentiate themselves in the minds of the flyers by presenting themselves as quality oriented service provider.
The three firms group which appear to be pursing low-cost strategies: (Southwest, America West and Continental). Consistent with Porter, Continental and America West’s quality ratings are commensurately low.

The airline industry sustainability depends on a variety of economic and non-economic factors such as cost and quality and its future performance is difficult to predict. The example given above is not based on a complex economic model, but it is intended as a rough guide to the direction in which the market is likely to move. This example is based on a correlation between different groups that exist within the industry such as quality differentiation group, cost leadership and focus strategy.

2.0 Comprehensive analysis of SA low-cost airline industry

The key players in the industry are: South Africa Airlines (SAA),, Nationwide Airlines, Intensive Airlines, Mango Airline, Interlink Airline to mention but a few. The low-cost carrier market in


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