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Xiamen Airlines: Bracing for Impact

Wiefen Zhuang ; Yongquan Lan ; Zhaowei Miao ; Kersi Antia ; Moeen Butt

Reference: IVEY-9B15A015-E
Year: 2014
Number of pages: 10
Geographic Setting: China
Publication Date: Sep 10, 2015
Fecha de edición: Sep 10, 2015
Source: Ivey Business School (Canada)
Type of Document: Case
Industry Setting: Transportation and Warehousing;

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Description

On March 31, 2014, the vice-president of Sales & Marketing at Xiamen Airlines Co. Ltd. (XiamenAir) was reviewing the minutes of the month-end meeting with his team. The meeting had focused mainly on the rapid spread of high-speed rail in China, especially along the popular and profitable routes served by his company. The new train service might become an indirect, albeit potent source of competition, redirecting existing passenger volume from airlines to a much cheaper travel option. How would its growth affect the positioning of XiamenAir as a premium service, high-priced airline? How should the company respond to this development?

Learning Objective

This case may be used in marketing management or competition-related courses at undergraduate, MBA and executive MBA levels. Its objectives are: ·To identify direct and indirect sources of competition. ·To identify the bases for competition. ·To anticipate and react to competitors' moves.

Keywords

airlines China Competition identifying competitors