and also moving into existing markets for FSAs. Currently, there are more than 120 LCCs operating in the world and the number is expected to grow steadily in the near future. European LCCs have been growing at 6% annually since 2002 and the market share reached 35% in 2008. The situation in U.S is better – maintaining 26% growth rate since 2002. The demand for LCCs is also high in Asia. The
cost, airline companies should make an effort to differentiate themselves by increasing their asset value through high-quality services and improved branding. For example, many companies are trying to get qualifications for high-quality service, safety, strong brand name, and competitiveness based on lowcost. However, there is also a limit to increasing the quality or service unless the objectiv
and price occupy a lot of portion. Providing high information andlow price cannot coexist. In order to get high information, we should cost a lot of money. But Freemarkets ignores these things and sticks to Lower price, it makes Revenue Model become worse. So we have to pick one thing between Information and Price. Low price offers high benefits to buyers but it is always difficult to offer low
high quality material. In order to maintain high quality, SPAO uses only premium quality materials for its clothing such as wool made in Australia and the best quality cotton from Bangladesh and India. The third is color. SPAO carefully selects colors that well match the skin color of the Korean people. And the final value provided by SPAO is low price. The products of SPAO cost only 80-90% of it
iii. Potential Entrants (Threat of new entrants - high)
This industry doesn’t require high initial investments and startup (fixed) costs. This is not an industry which aims to achieve economy of scales as minimum size requirements for profitable operations are not high. The maintenance costs are also low. Moreover, distribution channels are not controlled by existing players as there are many