BATAAN PENINSULA STATE UNIVERSITY

MAIN CAMPUS
Capitol Compound, Tenejero, City of Balanga 2100 Bataan
GRADUATE SCHOOL
P Phone Number: (047) 237-6658 www.bpsu.edu.ph

I. Statement of the Problems

 Should we adjust prices in relation to other airlines` fluctuating pricing strategy?

II. Objectives

 Strengthen the overall game plan which underlies the pricing strategy to keep up with the

dynamic prices offered by competitors

III. Strength, Weaknesses, Opportunities, Threats (SWOT)

Strength

 Being able to pioneer price increase means we have the leverage to set competition

in prices

Weaknesses

 The increase in price may affect market share if competitors do not implement hike

Opportunities

 Other things held constant, if the airfare increase, the income also increases

Threat

 Other companies mal follow the trend and decrease their price, too

Our Vision  Our Mission 

A leading university in the Philippines recognized for its proactive To develop competitive graduates and empowered community members by providing relevant, innovative
contribution to Sustainable Development through equitable and inclusive and transformative knowledge, research, extension and production programs and services through
programs and services by 2030. progressive enhancement of its human resources capabilities and institutional mechanism.
 BATAAN PENINSULA STATE UNIVERSITY
MAIN CAMPUS
Capitol Compound, Tenejero, City of Balanga 2100 Bataan
GRADUATE SCHOOL
P Phone Number: (047) 237-6658 www.bpsu.edu.ph

IV. Assumptions:

 The change in pricing strategy of one entity affects those the competitor

 These airlines companies may enter into cartel to set and regulate the prices

 There is a barrier to entry in the market they are in

 The companies are interdependent with each other, thus a single act of one influence

others

V. Alternative Courses of Action:

 Identify areas of operation which are non-value added to eliminate unnecessary costs

 Enter into a collusion with other players in the market to stabilize the price

 Always do benchmarking to compare fluctuations in prices

VI. Analysis

Alternative Course of Advantages Disadvantages

Action
Identify areas of  The company may
operation which are non- ensure all that areas of
value added to eliminate operation add value to
unnecessary costs the service
 The prices may be cut
substantially which will
give the company a
competitive edge
 Expense will also be
reduced to reflect only
those which are
necessary
 The company needs
intensive monitoring to
detect non-value-added
processes and practices
 The burden of judgement
if one operation can be
dissolve lies within the
top management

Our Vision  Our Mission 

A leading university in the Philippines recognized for its proactive To develop competitive graduates and empowered community members by providing relevant, innovative
contribution to Sustainable Development through equitable and inclusive and transformative knowledge, research, extension and production programs and services through
programs and services by 2030. progressive enhancement of its human resources capabilities and institutional mechanism.
 BATAAN PENINSULA STATE UNIVERSITY
MAIN CAMPUS
Capitol Compound, Tenejero, City of Balanga 2100 Bataan
GRADUATE SCHOOL
P Phone Number: (047) 237-6658 www.bpsu.edu.ph

Enter into a collusion with  Prices will be stabilized  Cartel can be considered
other players in the and maintained at a as illegal per se
market to stabilize the rate which provides  The companied are
price significant margin under obligation to keep
 Competitions among their stipulations intact, a
competitors will be disregard of one member
restricted may in still to all
companies

Always do benchmarking  We will be able to  We may give more focus

to compare fluctuations compare and contrast in comparing our
in prices our strategy with other standing to other
companies with the companies and may lose
same situation as ours sight of what really
 If benchmarking is needs to be done in our
done correctly, we company
may use this in
adjusting and
amending strategies to
compete better

VII. Conclusion and Plan of Action

Airline industry display promising future to its players, but not be deceived with the promise it

brings for it may lead you to disaster.

To enter into airline is not easy. If entering is so is maintaining your market share.

Our Vision  Our Mission 

A leading university in the Philippines recognized for its proactive To develop competitive graduates and empowered community members by providing relevant, innovative
contribution to Sustainable Development through equitable and inclusive and transformative knowledge, research, extension and production programs and services through
programs and services by 2030. progressive enhancement of its human resources capabilities and institutional mechanism.
 BATAAN PENINSULA STATE UNIVERSITY
MAIN CAMPUS
Capitol Compound, Tenejero, City of Balanga 2100 Bataan
GRADUATE SCHOOL
P Phone Number: (047) 237-6658 www.bpsu.edu.ph

In doing so, entering a cartel may be a big help. These are the steps to enter a cartel:

1. Give notice to the prospective members

2. Explain the agenda of the meeting

3. Persuade businessmen to enter into cartel

4. Signing of contract to make the agreement formal

Our Vision  Our Mission 

A leading university in the Philippines recognized for its proactive To develop competitive graduates and empowered community members by providing relevant, innovative
contribution to Sustainable Development through equitable and inclusive and transformative knowledge, research, extension and production programs and services through
programs and services by 2030. progressive enhancement of its human resources capabilities and institutional mechanism.