Empirical Validation of Blue Ocean Strategy Sustainability in an International Environment

Abstract This article investigates the applicability of blue ocean strategy in regard to low-cost airlines in the civil airline industry. To do so, the commercial offers of selected airlines were compared to validate any attempts to apply the blue ocean strategy concept. This is followed by examining the time limitation of the concept in a competitive environment and is illustrated by the changes in the industry for the past 30 years and a comparison of offers from similar companies. The third issue is the evaluation of the further contribution of blue ocean strategy when it is recognized as time-limited. The importance of first-mover advantage, which could be based on the ability to capture an economy of scale and advantageously shape the market, is also discussed.

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The low fee entry strategy and first mover advantage in the ETF market

Investment Management and Financial Innovations ◽

10.21511/imfi.16(2).2019.24 ◽

2019 ◽

Vol 16 (2) ◽

pp. 281-294

Author(s):

Mina Glambosky ◽

Kimberly Gleason ◽

Chun Lee ◽

Maryna Murdock

Keyword(s):

Mutual Funds ◽

Low Cost ◽

Investor Behavior ◽

Fund Flows ◽

Exchange Traded Funds ◽

Academic Literature ◽

The Past ◽

First Mover Advantage ◽

Distinct Features ◽

First Mover

Academic literature struggles to explain investors’ attitude towards fees and expenses charged by mutual funds. In general, investors have been found to exhibit a puzzling lack of interest in this non-trivial component of their total return, raising questions of rationality of real-world investor behavior. An emergence of exchange-traded funds (ETFs), their rapid proliferation in the past decades and distinct features, such as more simple expense structure, present a valuable opportunity to contribute to the debate surrounding the pricing of funds. To better understand the expense policy/fund flows dynamics, the authors first test a conjecture that later entrants in the ETF markets face a disadvantage in competition for fund flows. Then, they test whether competitive pressure can be successfully overcome by lowering expenses charged to ETF investors. The results suggest that, though it is not necessary to be a first entrant in a fund category to enjoy competitive advantage, an earlier market entry is beneficial for attracting fund flows. It is also found that later entrants’ to the ETF market successfully use the strategy of reducing their expense ratios. Firms with lower net expense ratios obtain greater investment, as evidenced by greater capitalization and market share, supporting our intuition that investors may acknowledge the merits of low-cost ETFs.

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Climbing the Capitoline Hill

10.1093/oso/9780190492274.003.0002 ◽

2017 ◽

Author(s):

Jason Moralee

Keyword(s):

Fourth Century ◽

Sixth Century ◽

The Third ◽

The Past ◽

Traditional Uses ◽

The Hill ◽

Do So ◽

High Politics ◽

Late Roman

Chapter 1 introduces the transformations of the traditional uses of the hill from the third to the sixth century, in particular when emperors climbed the Capitoline Hill, when they chose not to do so, and the dynamics that eventually led to the abandonment of the Capitoline Hill. By the end of the fourth century, Christian rulers and administrators began to treat Rome as pilgrims did, thus terminating processions not at the Capitoline Hill, as they had in the past, but instead at St. Peter’s, the Lateran Palace, or the Forum of Trajan. Far from signaling the end of the hill’s history, the absence from the hill of emperors and their ritual power lifts the hill from the shadow of late Roman high politics and allows us to see how the hill functioned in other ways.

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Europe's airlines will see more restructuring

Emerald Expert Briefings ◽

10.1108/oxan-db211426 ◽

2016 ◽

Keyword(s):

Airline Industry ◽

Low Cost ◽

Terrorist Attacks ◽

Content Type ◽

Underlying Condition ◽

The Past ◽

Low Cost Carrier ◽

The Eu

Subject Europe's airline industry. Significance Despite good performance over the past year, the underlying condition of the European airline industry has not changed. Major carriers are still facing competitive challenges from long-haul airlines based in the Gulf, especially Emirates, Qatar Airways and Etihad Airways, and from the European low-cost carrier (LCC) sector. Impacts The fallout from recent terrorist attacks could hit the industry's fragile recovery. Labour unrest in France will affect Air France, as its pilots voted on May 30 to go on strike over pay conditions. A UK exit from the EU would force its airlines, some of the most efficient in Europe, to reconsider the focus of their operations. New opportunities may arise from the Commission's efforts to negotiate aviation agreements with such countries as Brazil as well as ASEAN.

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Thoughts on the Dilemma of When to Introduce the Euro in Hungary

Financial and Economic Review ◽

10.33893/fer.20.3.110126 ◽

2021 ◽

Vol 20 (3) ◽

pp. 110-126

Author(s):

Péter Gottfried

Keyword(s):

Economic Policies ◽

Yield Spreads ◽

Know How ◽

The Past ◽

International Environment ◽

Government Deficit ◽

The Common ◽

The Government ◽

Development Paths ◽

Do So

In its EU accession treaty, Hungary committed to introducing the euro without a legally binding deadline. The question is therefore not whether the country will introduce the common currency, but when it will do so, and what factors play a role in the decision. Developments in recent years have confirmed that the euro system is able to weather a crisis, but also highlight that the euro does not in itself guarantee sustainable convergence. In addition to accession, members’ rights and obligations have also changed considerably, and these changes have not been completed. There are examples for successful economic policies without the euro and also for frustrated growth with the euro. Only one area has been identified where the advantages of membership are indisputable: yield spreads. In today’s international environment, this is much less important than in the past, but it is impossible to know how long this situation will last. Accordingly, the Hungarian strategy should target sustainable convergence, rather than the introduction of the euro. If the country can substantially reverse the increase in the government deficit and debt and keep them low, it would be worth waiting until the development paths related to the euro are outlined more clearly, while continuing with convergence. If this is not possible, the option to join the euro area as soon as possible should be preferred, which offers greater security but less room for autonomous manoeuvre.

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A REVIEW OF RECENT TRENDS IN AIRLINE ANCILLARY REVENUES

EMC Review - Časopis za ekonomiju - APEIRON ◽

10.7251/emc1901132s ◽

2019 ◽

Vol 17 (1) ◽

Author(s):

Ružica Škurla Babić ◽

Maja Ozmec Ban ◽

Jasmin Bajić

Keyword(s):

Airline Industry ◽

Distribution Systems ◽

Low Cost ◽

Total Revenue ◽

The Past ◽

Travel Experience ◽

Transportation Service ◽

Profit Performance ◽

Recent Trends ◽

Revenue Streams

Airline ancillary revenue which refers to non-ticket revenue sold directly to passengers or indirectly as part of their travel experience, has become a mandatory component for the revenue mix of all airlines as well as a key reason for the improved financial performance of the airline industry in the recent years. It is generated by a large amount of activities that include „a la carte” services such as fees for checked bags, frequent flying miles to airline partners, miscellaneous sources like advertising and commission-based products such as inflight retail, and car rentals - virtually any service added to the core transportation service. Contribution of ancillary services to the total revenue streams of airlines has been increasing substantially over the past decade. In 2007, the top ten airlines, as rated by total ancillary revenue, generated $2.1 billion, while ten years later, the top ten airline total has reached $29.7 billion. The paper explores the recent growth and trends in ancillary revenue in the airline industry, particularly within in the last ten years and identifies significant differences in ancillary sources with regard to carrier type. Low-cost carriers pioneered the practice of charging for supplementary services that were previously provided free of charge by seeking revenue from checked bags, assigned seats and extra leg room seating. Traditional airlines moved from all-inclusive booking arrangement and started to adopt add-on bundling practice when selling flight tickets taking advantage of low headline price. Their ancillary revenue mostly comes from the use of frequent flyer program, a mix of baggage fees and premium seats. Top airlines in overall ancillary revenue performance measured as total revenue, a percent of revenue, or on a per passenger basis are determined in the paper and new trends in creating ancillaries are elaborated. In order to improve profit performance, the airline revenue management and distribution systems should consider total revenue from each passenger, by linking his ticket value and his ancillary revenue potential.

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Familiarity and Use of Veterinary Services by US Resident Dog and Cat Owners

Animals ◽

10.3390/ani10030483 ◽

2020 ◽

Vol 10 (3) ◽

pp. 483

Author(s):

Courtney Bir ◽

Mario Ortez ◽

Nicole J. Olynk Widmar ◽

Christopher A. Wolf ◽

Charlotte Hansen ◽

...

Keyword(s):

Low Cost ◽

Pet Ownership ◽

Veterinary Services ◽

The Past ◽

Pet Owners ◽

Dog Owners ◽

Nationally Representative ◽

Clinic Practice ◽

The Relationship ◽

Do So

Pet ownership, veterinary use, and beliefs regarding veterinary care were elicited through the use of a nationally representative survey of 997 U.S. residents. Fifty-one percent of respondents have or had a dog in the past five years and 37% have or had a cat in the past five years. Over ninety percent of cat and dog owners had visited a veterinarian at any time, but only about 40% visited a veterinarian annually. With the rise of options in veterinary medicine, including low-cost options for vaccines and spay/neuter, further study and analysis of pet-owners use of veterinary care is warranted. Fifty-four percent of dog owners and 40% of cat owners who went to a low-cost spay/neuter clinic also went to a veterinarian/clinic/practice. This finding suggests that pet-owners who use low-cost options do so in a manner that supplements rather than replaces traditional veterinary care. Logit models were employed to evaluate the relationship between dog and cat owner demographics and visiting a veterinarian. The probability of visiting a veterinarian increased with age and income for dog owners.

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TRANSNATIONAL REPRESENTATION BY EUROPEAN WORKS COUNCILS IN THE PASSENGER AIRLINE INDUSTRY

Journal of Air Transport Studies ◽

10.38008/jats.v11i1.151 ◽

2020 ◽

Vol 11 (1) ◽

pp. 1-10

Author(s):

Stephen Havlovic

Keyword(s):

Mergers And Acquisitions ◽

Airline Industry ◽

Low Cost ◽

Strategic Decision ◽

Strategic Decision Making ◽

Works Councils ◽

The Past ◽

Start Up ◽

Subject Areas ◽

International Airlines

Mergers and acquisitions have reduced the number of European Works Councils (EWCs) in the airline industry over the past two decades. In addition, start-up low-cost airlines have been reluctant to form EWCs. Only 5 of the 11 eligible transnational passenger airlines have established EWCs. This limited number of airline EWCs reduces airline employees' opportunity to be involved in strategic decision making in areas such as tourism. All of the available EWC agreements provide the opportunity for management and employee member consultation, the offering of opinions, and providing information related to European transnational operations. The Lufthansa Group and the International Airlines Group EWC agreements contain more subject areas for discussion than the Air France-KLM agreement. Only the Lufthansa Group EWC agreement includes the topic of environmental protection.

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The Low Cost Carrier Revolution Continues: Evidence From The US Airline Industry

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v10i1.6732 ◽

2011 ◽

Vol 10 (1) ◽

pp. 37

Author(s):

Bogdan Daraban

Keyword(s):

Airline Industry ◽

Business Models ◽

Low Cost ◽

Font Size ◽

The Core ◽

The Past ◽

Considerable Cost ◽

The Us ◽

Low Cost Carrier ◽

Competing Models

Over the past twenty years the US airline industry has been marked by the intense competition between the Low-Cost Carriers (LCCs) and the Full-Service Carrier (FSCs). The fundamental differences between the two business models are reflected in considerable cost advantages of the LCCs. In this paper, I use a set of model specific metrics to investigate whether the competitive process has led to convergence in some of the key features of the competing models. I conclude that despite some evidence of convergence along certain dimensions, the LCCs are not ready to abandon the core LCC model.

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An Analysis of the Influence of Competitive and Institutional Pressures on Corporate Sponsorship Decisions

Journal of Sport Management ◽

10.1123/jsm.13.2.114 ◽

1999 ◽

Vol 13 (2) ◽

pp. 114-138 ◽

Cited By ~ 18

Author(s):

Tim Berrett ◽

Trevor Slack

Keyword(s):

Geographic Area ◽

Decision Makers ◽

Competitive Environment ◽

Institutional Pressures ◽

Corporate Sponsorship ◽

Occupational Training ◽

Sport Sponsorship ◽

First Mover Advantage ◽

Institutional Forces ◽

First Mover

Sport sponsorship is frequently described as a strategic activity, and thus, it is influenced by both competitive and institutional forces. Using a sample of 28 Canadian companies, this study explores the influence of competitive and institutional pressures on those individuals who make decisions about their company's sport sponsorship initiatives. The results show that the sponsorship activities of rival companies were influential in a company's sponsorship choices. This was particularly the case in highly concentrated industries. We also show some evidence of a first-mover advantage in sponsorship decision-making but found preemptive strategies to yield little competitive advantage. In addition to these pressures from the competitive environment, institutional pressures from companies in the same geographic area, in the form of mimetic activity, in the form of involvement in social networks, and through the occupational training of the decision makers—all played a role in the choices made about what activities to sponsor.

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WestJet Airlines: hybrid but profitable

Strategic Direction ◽

10.1108/sd-07-2015-0106 ◽

2015 ◽

Vol 31 (8) ◽

pp. 23-25

Author(s):

Mark Thomas

Keyword(s):

Airline Industry ◽

Design Methodology ◽

Low Cost ◽

Strategic Positioning ◽

Hybrid Strategy ◽

Content Type ◽

The Past ◽

Low Cost Carrier ◽

One Year

Purpose – The article looks at a Canadian airline, WestJet, that began as a low-cost carrier and is now adopting a more hybrid strategy. It analyses the difficulty of such a strategy and makes the comparison with Singapore Airlines (SIA) which has attempted to do the same. Design/methodology/approach – The article is a case study primarily of WestJet, but also of SIA. Findings – The airline industry is notorious for its low profits in the good years and appalling losses in the bad ones. The Canadian airline, WestJet, is one of the few companies that has defied this trend over the past decade. Indeed, it has reported positive net incomes for all but one year since it was created in 1996. In doing so, the Alberta-based firm is bucking not just the trend on profitability but also on strategic positioning.

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