Blue Ocean Strategic Sequencing for US Airways?

Blue Ocean Strategy > Forum Log in

Blue Ocean Strategic Sequencing for US Airways?
Max Burda, Other, United States

US Airways is in in a red ocean, they must determine there their 3 tiers of consumers. For them to work toward a Blue Ocean they need to think of non consumers first, commonalities before differences and then desegregation before pursuing segmentation.
Once they determine there strategy and answer those questions then they may move onto buyer utility and the blocks that may encompass this step.
US Airways has room for improvement, for example, one reason people beside business class individual are not flying is due to today economy (cost) due to fuel, why not purchase fuel in bulk at a fixed rate or move to smaller airports which could possible open those people that are on the edge or even the consumers that do not pick there service at all.
Then they can move onto the next step of price, cost and adoption in this sequence. Once all this has been completed then they can move onto the utility map to validate. Either way US Airways needs to re-look at their business model and make some changes. Thanks for your feedback.

Strategy versus Tactic
Tony Wasserman, Professor, United States
Nothing to see here, just move along. "US Airways has room for improvement". Ha ha. So does Aeroflot. Maybe you are unfamiliar with the airline industry.
Flying to smaller airports is an excellent formula for losing money. For many years, the US Government subsided flights into smaller airports since airlines could not make a profit on such flights, even with exorbitant fares and smaller planes. Now that their wealthy supporters don't have to fly commercial anymore, the US Congress has no interest in spending government funds on such subsidies. So flying commercial flights to smaller airports is a proven non-starter, but they could think about acquiring a company like Netjets whose wealthy passengers are less price sensitive.
Airlines routinely hedge their fuel costs by purchasing option contracts. That's much cheaper than buying in bulk, and avoids the risk and cost associated with storage. I would be surprised if US Airways were not already doing this.



    Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  

Special Interest Group Leader
Andrew Nelson

More on Blue Ocean Strategy
Best Practices

Expert Tips


About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2016 12manage - The Executive Fast Track. V14.1 - Last updated: 25-10-2016. All names tm by their owners.