Using multiple correspondence cluster analysis to map the competitive position of airlines

Abstract

Airlines can use market positioning to identify the major strengths and weaknesses of their services. The empirical analysis examines the international airlines operating on the Taipei–Tokyo and Taipei–Osaka routes. The multiple correspondence analysis results illustrate the relative positions of airlines, service attributes, and travelers’ characteristics in a perceptual map. The cluster analysis clearly identifies two groups of airlines that compete on particular services. The findings suggest that each airline can simultaneously adopt strategies to maintain and enhance its current strengths and to strengthen attributes in which it is lacking.