FlyBaboo: How High Can It Fly?

Value Chain and Strategic Innovation

Case Discussion
1. Please provide Five Forces Analysis of the European airlines
industry?

2. What are the key elements of the FlyBaboo value systems

(FlyBaboo Value Chain)?

3. What are the key elements of FlyBaboos strategic innovation?

4. Which customer segment is FlyBaboo serving? What perceived

value are FlyBaboo aiming for?

5. How could the upstart airline build sustainable competitive

advantage and what strategy should it pursue to ensure long-
term growth and profitability?
FlyBaboo Value Chain
Purchasing Operations Marketing Distribution

Leadership Culture Processes Infrastructure

FlyBaboo Strategic Innovation
Traditional EasyJet FlyBaboo

VALUED CUSTOMER Everyone, especially People who pay from

business class their own pockets
and some who dont
fly
VALUE PROPOSITION Flexible One-way fares
Full Service Refunds, if plane is
Worldwide Network late
High prices No seat choice
Low prices
No meals
VALUE CHAIN

Purchasing Integrated Outsourced

Operations Multiple planes for Short-haul routes

mix of short and Single type of plane
long haul travel Select destinations
Worldwide network
Marketing Segmented Treat all customers
customers the same
Varied meal services Focused
Frequent flyer
program