IMD-3-1526 © 2005
Leleux, Benoit F.; Constantinou, Dinos; Bourgeois, Henri
The story of Flybaboo; a specific niche airline company start-up in a congested market; supplies students with the chance to analyze subjects such as market entry; competitive method; item distinction and positioning; branding; and entrepreneurship. Flybaboo is an interesting example of a brand-new entrant in a fully grown market going through transformation; where the normal obstacles dealing with entrepreneurial activities are intensified by a complicated governing environment and prospective competitive risks from both a developed (however decreasing) competing and incumbent start-ups. The creator of the business skillfully integrated relatively reputable company practices into a brand-new consumer "value proposal" with high attract a service-minded customer specific niche.
Simply puts; the case supports the principle that an unique value proposal can be developed without "distinct" elements; with the viewed value coming primarily from a distinct mix of non-novel elements. The case acts as a perfect base for going over the problems such as: 1) performing a market analysis in a quickly altering environment; 2) comprehending the components of a consumer value proposal; 3) developing and keeping a competitive benefit.
Subjects: Start-up; Niche airline; Market entry; Competitive strategy; Customer value proposition; Product differentiation and positioning; Branding; Entrepreneurship
Settings: Switzerland; Europe; Airline; 2004 sales: CHF 11 million; 2003-2004
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