Xiamen Airlines: Bracing for Impact
(5 pages of text)
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?
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.
Transportation and Warehousing
China, Large, 2014
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