Case 3 Oasis
Case 3 Oasis
Case 3 Oasis
Opportunity Threat
Pest Analysis
Influence by oil price that effect on the ticket
price, plane, price, and price that related to
Economics
Airport
Threat of Bargaining
Industrial New
Entrants
Power of
Buyer
analysis
Rivalry Among
Existing Competitors
High
Bargaining
Threat of
Power of
Substitutes
Suppliers
High High
There are only land and sea There are only two suppliers
transportation which take long for commercial plane such as
time to reach destinations Airbus and Boeing
Internal Environment
Resources
Capabilities & Core
Competencies,
Value Chain Analysis
Financial Have funding investment from Raymond Lee and his wife
Resources Priscilla (property developer), Allan Wong (chairman and
CEO of VTech Holdings), and Richard K. Lee (founder of
Trinity Textiles)
Offered low-cost carrier
Resources
Operating long-haul flights would give Oasis a low operating
unit cost
Tangible
Physical Use secondary airports such as Gatwick (instead of Heathrow) and
Resources Oakland (instead of San Francisco).
Oasis offered standard upgraded meals with complementary drinks
and lounge access (would be available at an additional cost)
Oasis adopted traditional carriers model and relied on brick-and-
mortar travel agents to sell tickets.
Technological Have two Boeing 747-400s were configured for 81 business-class
Resources seats and 278 economy-class seats.
esources
tangible
Resources
Innovation Oasis as the only long-haul, low-fare airline operating out of
Hong Kong
Reputational Oasis had competitive price compared with the other airline
for both economy class and business class
Capability & Core Competencies
Tangible Valuable Rare Costly-to- Nonsubstitutable Competitive consequences
Resources imitate
1. Procurement:
Had purchased two Boeing 747-400s from Singapore
Airlines
2. Technological Development:
2 Boeing 747-412
3 Boeing 747-481
3. Human Resource Management:
Had roughly 700 crew in total by 2008
4. Firm Infrastructure:
The airline operated on two routes, from Hong Kong to
London Gatwick Airport & Vancouver International Airport
Porter
Generic
Strategy
Porter Generic Strategy Low
Cost
Another are
Oasis would
costs was
airport landi
parking fees
the airline
would use s
airports suc
Gatwick inst
of Heathrow
and Oakland
of San
Francisco in
Porter Generic Strategy Low
Cost
Another area where Oasis would save on costs was airport landing and parking fees
because the airline would use secondary airports such as Gatwick instead of Heathrow
in London and Oakland instead of San Francisco in California.