Strategies to fight low-cost rivals.

The encouragements of Turkish government for aviation industry in 2003 have paved the way for private airlines to enter the market. Through the increasing number of airlines and the rivalry between them, especially low-cost carriers have started to give transportation service with cheaper ticket prices. According to The International Air Transportation Association (IATA) estimates, the number of passengers travelling with airlines around the world will reach to 3.8 billion passengers in 2020 and low-cost carriers’ flight networks and numbers especially in developing countries as Turkey will continue to gain momentum. When considering the increased passenger traffic in Turkish travel industry, providing the passenger loyalty for Turkish low-cost carriers has also become obligatory for these companies’ survival in the longrun. In this study, determinants of passengers’ loyalty as perceived value and trust have been searched. For this purpose, 350 questionnaires were applied to the passengers travelling with low-cost carriers at Hatay and Adana Airports in Turkey, 311 of which were analyzed after eliminating invalid ones. Structural equation modelling was applied for data analysis. According to the analysis results, perceived value and trust were identified as the important determinants of passenger loyalty.

Marketing strategy and planning

The Effect of LCCs’ e-Business and e-Management Strategies by Investigating Determinants on Southern Taiwan

Proces globalizacije znacajno je ubrzan tokom prethodne dve decenije. Njegova glavna karakteristika je nastanak novog poslovnog okruženja. Novo poslovno okruženje se sa jedne strane odlikuje obiljem poslovnih prilika, usled dostupnosti novih tržista, a sa druge obiljem opasnosti, usled izloženosti globalnoj konkurenciji. Kompanije su na promenjen poslovni ambijent reagovale internacionalizacijom poslovanja, a sve u cilju koriscenja mogucnosti koje su se otvorile i adekvatnog upravljanja rizikom poslovanja. U ovom periodu investicione strategije internacionalizacije, a narocito medunarodna preuzimanja, dobila su na svojoj atraktivnosti i znacaju. Liberalizacijom regulative koja se odnosi na inostrane investicije, narocito kroz masovne privatizacije, državni organi bivsih socijalistickih zemalja, ukljucujuci i Srbiju, kreirali su pretpostavke za dinamican razvoj medunarodnih preuzimanja. Usled neefikasnog institucionalnog i specificnog poslovnog ambijenta u tranzicionim zemljama, inace složen proces medunarodnih preuzimanja postaje jos kompleksniji. U okviru disertacije bice izložen strategijski model planiranja i implementacije medunarodnih preuzimanja cija bi primena trebalo da doprinese kreiranju vrednosti za vlasnike. Nakon toga bice analizirani efekti medunarodnih preuzimanja u Srbiji na nacionalni izvoz kao i izvoz preuzetih kompanija, razvoj finansijskog položaja preuzetih kompanija i konacno efekti transferisanja medunarodnih standarda poslovanja kao izuzetno znacajne imovine nematerijalnog karaktera.

Strategic Responses to Multiple Dimensions of Low-Cost-Country Competition

Abstract In this article, we examine competitive moves by which firms achieve superior performance. In contrast to prior work that has focused on moves and the related competitive advantages of large firms, we draw attention to entrepreneurial firms. Based on 32 runs of a multi‐round experiential simulation and in‐depth participant interviews, we find that entrepreneurial firms require competitive strategies that are different from those of a control group of comparable large firms. Entrepreneurial firms that stay below the radar in established markets and are quick to explore in new markets perform better. They succeed in established markets with a strategy that works around large firm competition but ultimately surprises them, and in new markets with a strategy that sets the standards of competition swiftly by continuously creating and destroying new strongholds ahead of large firms. Overall, successful entrepreneurs use a combination of selective, invisible, and asynchronous strategies that vary depending on whether the market is established or new. Our findings contribute to literatures on evolutionary learning, exploration and exploitation, and competitive dynamics. Copyright © 2012 Strategic Management Society.