AIR DECCAN – Case Study on BLUE OCEAN STRATEGY

By: Amit ShethGagan Pareek

Sainatth Wagh Samir Daddikar

Features of Blue Ocean Strategy

Create uncontested market space. Make the competition irrelevant. Create and Capture new demand. Align the whole system of the

company’s activities in pursuit of differentiation and low cost.

How did Air Deccan create uncontested market space.

Existing players (I A, Jet Airways, Sahara)

Low Cost business model is based on following three policies:

Low operational cost. Appropriate Positioning No frills service

Making competition irrelevant

Targeting the unsatisfied customer. Introduction of “Dynafare”.

Create and Capture new demand

Inspite of 150 million middle class, 3-4 millions travelled because of price affordability.

50 million rail travelers, approx 2 lakh travelled in the air condition coaches.

Defined the target as Upper Class but marketed aggressively on lower middle class.

Product Differentiation & Low Cost

Targeted Tier-2 cities. Ventured into new cities using new

routes.

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