Competitive Pricing Strategies of Low Cost Airlines in the Perspective of Game theory
Lim Seng Poh+ and Mohd. Ghazali bin Mohayidin
Open University Malaysia
Abstract. Price is the weapon of choice for many low cost airlines in the competition for market share. Regional low cost airlines’ pricing strategy for market stimulation is issuing free tickets and competing in ticket prices setting. It has been assumed as an effective strategy in influencing customers’ purchasing decision. This study has documented the differences in price setting dynamics across low cost airlines operating on one of the biggest regional market and six domestic routes. A total sample of 7883 fare quotes for nonstop travel from Kuala Lumpur to Singapore and 6 domestic routes have been examined. The employment of Granger Causality Test attempts to mathematically capture the competitive behaviour in price setting. The data evidence revealed the reality of price competitiveness among the low cost airlines and game theory suggests that price cooperative should be implemented by low cost airlines for long term sustainability.
Keywords: Low cost airlines, Pricing Strategies, Game theory
Gwo-Hshiung Tzeng
National Distinguished Chair Professor; Graduate Institute of Management of Technology, National Chiao Tung University; and Kainan University; E-mail: ghtzeng@cc.nctu.edu.tw;
Tel: +886-3-5712121#57505; Fax: +886-3-5753926
1. Introduction
Since Zadeh originally proposed fuzzy set theory (1965), and Bellman and Zadeh (1970) subsequently described the decision-making methods in fuzzy environments, growth of applications of fuzzy set theory and relevant approaches cope with uncertain fuzzy problems. Basically, the elements of decision-making problems consist of goal/objective goal, criteria/factors alternatives/actions, and so on. Usually, there have many criteria, either quantitative or qualitative or mixed, within processing of analytic and evaluating for decision-making problems. Moreover, it is not unusual for many conflicting criteria to be used, how to evaluate the importance (weight) of listed criteria and how to aggregate which parameters with performance of alternatives (or actions) is the important challenge for the decision maker.
In the past, there are many approaches proposed to deal with multiple criteria decision-making problems. Through this article we will pay attention to the methods for decision making in fuzzy environment. We give the basic concept of decision making in fuzzy environment in next section. We will take apart these MCDM problems into two phases to discuss. In section 3, we focus on the topic of fuzzy multiple attribute decision-making, we will review many methods or techniques and their applications for this field. In section 4, we will describe some concepts and models development of fuzzy multiple objective decision making. We also demonstrate relevant techniques and process for group decision-making topic in section 5. Some numerical and practical examples including this chapter will more appropriate to help you to understand the context of theory and the meaning of the applications.
2. Full text : تمام متن
Michael Porter didn't get to be a giant in the field of competition and strategy by hunting small game."
Joan Magretta begins her new book on Harvard Business School's Michael Porter's work by noting that, from the start of his career, Porter has been asking a big question when it comes to understanding everything from the free enterprise system to the individual motivations of managers.
Why are some companies more profitable than others?
In this excerpt from an interview between Porter and Magretta, Porter discusses the importance of strategy in delivering competitive advantage.
Book excerpt from Understanding Michael Porter: The Essential Guide to Competition and Strategy.
ادامه مطلب ...Title: A Practical Framework for Documentation of Experience and Knowledge Acquisition of Experts in Organiza
Authors: Ruhollah Tavallaee & Mohammad Mehdi Rashidi
Source: ICBER 2010, Kuala Lumpur, Malaysia, ISI Proceeding
Preparation: Scientific Database Management Journal Articles www.SYSTEM.parsiblog.com
Abstract: Now a day one of the main concerns of organizations is the issue of high experienced managers and experts who are transferring from their company imposes a big loss on organization. while effective performance of an organization in a competitive situation depends highly on awareness of past mistakes and learning from them .Documenting intangible experience of the expert paves the way for organizational learning and consequently better performance of organization.
In order to acquisition, documentation and codification, transfer, share and use of the organizational experience, we need to have a suitable and practical model with high validity. This article offers a practical framework to acquisition and document knowledge from experience of the experts in the organizations. This model has experimentally been used by institute for international energy studies (IIES) for acquisition and documenting experience of 45 experts and managers of Islamic Republic of Iran’s petroleum industry and necessary modifications of the model have been done based on obtained results. this model includes five main stages: 1 - recognition, 2 –training, 3 - knowledge acquisition, 4–knowledge editing, 5 – knowledge management data base designing and knowledge electronic packaging.
Keywords: Knowledge, experience, knowledge acquisition, knowledge management, documentation, petroleum industry, I.R.Iran.
How did strategic planning help
during the economic crisis?
by James W. Wilson and Soren Eilertsen
During July 2009, 190 line managers and staff professionals
responded to a survey designed to assess the role that strategic
planning played during the recent financial crisis. The findings
show that organizations that used strategic planning
were better prepared, more confident, and better able to pursue
growth opportunities.
Source: AllBusiness.com
By Jonathan Farrington, AllBusiness.com.
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The focus of all modern management thinking, and strategic business practice, has to be the customer. Keep your customers happy and your sales will continue to soar. Neglect them, or take them for granted, and your bottom line will suffer accordingly.
When responding to a customer who has a complaint, keep these six rules firmly in mind:
1-Listen with understanding and sympathy: This defuses anger and demonstrates your concern. Tell the customer something like "I am sorry you have been inconvenienced. Tell me what happened so I can help you.” It is vital to show a sincere interest and willingness to help. The customer's first impression of you is all important in gaining cooperation.
2-Take responsibility: No matter what or who caused the problem, never, ever blame or make excuses. Instead take full responsibility and the initiative to do whatever you can to solve the problem as quickly as possible.
3-Paraphrase and repeat: Whenever you hear an important point from the customer, say "Let me make sure I understand. You were promised delivery on the 10th and you did not receive the product until the first of the following month. Is that correct?”
4-Find out what the customer wants: Is it a refund, a credit, a discount, or a replacement? The customer is complaining because of a problem that he or she wants solved as quickly as possible. Find out what the problem is so you can work toward solving it and not toward a solution the customer doesn’t want.
Foundations of a network approach to governance
Erik-Hans Klijn and
Joop F. M. Koppenjan
E. H. Klijn
Department of Public
Administration
Abstract
In this article we address the elaboration of the central concepts of a theory of networks and of network management. We suggest that the network approach builds on several theoretical traditions. After this we clarify the theoretical concepts and axioms of the policy network approach and argue that this framework has important explanatory power both on the level of strategic interaction processes as well as on the level of institutional relations. We argue that government’s special resources and its unique legitimacy as representative of the common interest make it the outstanding candidate for fulfilling the
role of network manager, a role which means arranging and facilitating interaction processes within networks in such a way that problems of under or non representation are properly addressed and interests are articulated and dealt with in an open, transparent and balanced manner.
What"s Your Strategy for Managing Knowledge
Authors: Hansen, Morten T., Nohria, Nitin, Tierney, Thomas
Subject: Knowledge management
Publish: 1999
Abstract: The rise of the computer and the increasing importance of intellectual assets have compelled executives to examine the knowledge underlying their businesses and how it is used. Because knowledge management as a conscious practice is so young, however, executives have lacked models to use as guides. To help fill that gap, the authors recently studied knowledge management practices at management consulting firms, health care providers, and computer manufacturers. They found two very different knowledge management strategies in place. In companies that sell relatively standardized products that fill common needs, knowledge is carefully codified and stored in databases, where it can be accessed and used - over and over again - by anyone in this organization. The authors call this the codification strategy. In companies that provide highly customized solutions to unique problems, knowledge is shared mainly through person-to-person contacts; the chief purpose of computers is to help people communicate. They call this the personalization strategy. A company"s choice of knowledge management strategy is not arbitrary - it must be driven by the company"s competitive strategy. Emphasizing the wrong approach or trying to pursue both can quickly undermine a business. The authors warn that knowledge management should not be isolated in a functional department like HR or IT. They emphasize that the benefits are greatest - to both the company and its customers - when a CEO and other general managers actively choose one of the approaches as a primary strategy.
Portfolio Management is about making sure your organisation makes the right investments and gets the returns it needs for organisational growth and delivery of its Mission. This infoKit is part of a series of linked resources for senior managers and decision makers
.
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