All Nippon Airways: Are Dual Business Models Sustainable?
(8 pages of text)
Case (Pub Mat)
In 2012, All Nippon Airways diversified into Japan’s emerging low-cost carrier market by launching two new low-cost carriers: Peach Aviation and AirAsia Japan. After one year, Peach Aviation experienced financial losses and operations failures; after two years, the company announced cancellation of many flights. The second carrier, AirAsia Japan, ended its operations in 2013, and was later restructured as Vanilla Air, a wholly owned subsidiary of All Nippon Airways. Why was a highly successful flag and legacy carrier unable to successfully run a low-cost carrier in Japan?
This case is suitable for use in senior undergraduate and graduate courses covering business model innovation, turnaround strategy, strategic management, and international market entry. After completion of the case, students will be able to:
- Understand business model innovation, management, and evaluation.
- Identify opportunities for synergy creation within an alliance.
- Appreciate the challenges of market entry and competition in an industry that is undergoing deregulation.
- Understand competition in so-called good enough markets of developed countries.
Transportation and Warehousing
Japan, Large, 2014
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