Individual Assignment 8 - Linear Air PDF

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Linear Air Case Study...

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BUSI 411 Mod 3 2019

Student Name Individual Assignment 8: Linear Air Name five (5) key participants the air taxi industry needs in order to “take off.” For each, evaluate whether or not there exist incentives to participate. In other words, does it seem beneficial for them? VLJ Manufacturers: these manufacturers are the main players. They had skin in the game to sell as many VLJ’s as possible to drive sales and make profit. They would initially be creating the business, for the air taxi industry to take off. Individual using Air Taxis: According to the case air taxis would be beneficial for many customers. Benefits like time savings, comfort, productivity are expected to attract these individuals. Corporations that uses Air Taxis: Corporations have a huge customer base. And like individuals air taxis can create a better travel experience for their customers. It will also help them to cut costs and avoid booking expensive flights at the last minute. Experienced Staff and Pilots: In order to help this industry, take off, it would be beneficial to bring an experienced management team and pilots. These can be seen as air taxis’ core competencies and will add to business’ capabilities. Also, will help with gaining customers trusts. Small Regional Airports: Regional Airports don’t have a lot of traffic and mostly always available. Air taxi will help make them more profitable, and put them in good use. Without regional airlines in my eyes, this industry will have a lot of trouble taking off, since air taxi would have to fight with commercial and big airlines to use bigger airports. Compare the “visions” or “views” of the industry from DayJet and Linear Air. What are the strengths and weaknesses (for the firm) of each model? Strengths: DayJet’s viewed the industry per-seat, on demand service between specific airports rather than an air taxi service. This model helped them target individuals not groups. They also used a software system to forecast their sales/demand and the dayjet community action kit to help drive sales. Linear Air viewed this industry as an opportunity to connect people who live and work near major metro areas and provide them with comfortable and convenient flight. They could sell a whole flight to corporate clients and make profit out of these groups. Weaknesses: Since Day Jet were catering the individuals they could have empty seats on flights and lose money on a flight. According to the article Linear Air’s weakness might be the cost. No matter how convenient and useful it is comparing to commercial flights cost of the service might still drive customers away. How can Bill Herp shape the air taxi industry towards his view? List three actions, and why they would help. Be specific. 1)To secure a loyal and safe customer base, Herp can partner with corporate clients and give them incentives like lower rates, contracts. Corporate clients would be a great market to go after to get consistent revenue. 2)Following what DayJet did good would be wise example for Herb. Forming good strategic relationships is essential for air taxi’s success, regional airports have a lot expertise and can help Herb shape his main goal/view. 3)According to the case, considering the struggles of regional airports investing in GPS supplemented by augmented signals for their air-taxis can help take the stress of regional airports and help air-taxi grow. Which expansion strategy (northeast, southeast, CA) should Bill Herp choose for Linear Air? Why? I think Herp should choose to expand in northeast. Expanding northeast initially will help to keep operational costs down since the airports and necessary equipment will be all close together and in one area. Also, according to the Exhibit 13, Northeast has the largest potential market size. Launching in northeast would be wiser call considering the information in hand: bigger potential customer base, low operational costs....