China Airlines Marketing Strategy
Marketing Strategy China Airlines on Guam
CASE SYNOPSIS:
This is a case study about how a foreign carrier, China Airlines, adapts it strategy competing in the Guam-based airline industry. The case traces the company’s history on Guam from setting up its regular flight schedule between Guam and Taipei, through a pricing competition with its main competitor Continental Micronesia, to today where it occupies the sole market share of flights between these locations. In addition, the study explains China Airlines approach to its customers through partnerships with hotels and tourism companies in both Taiwan and on Guam; how this business has been affected by immigration regulations; and how it has become a successful carrier on Guam, in spite of failing to reach its initial goal for even being on Guam.
Business Background on Guam
China Airlines is a foreign aviation corporation with headquarters in Taipei Taiwan. Before 2000, China Airlines only flew charter flights to Guam, with the market here being limited by the requirement that Taiwanese hold American visas to enter Guam. These charter flights, or irregularly scheduled flights specially arranged according to the needs of customers, were more expensive than normal flights, and were held at peak travel times, such as Chinese New Year (which usually is in January or February and lasts about fifteen days), a golden travel time period throughout Asia. In March 2000, the United States passed a visa waiver policy, allowing Taiwanese to come to Guam directly from Taiwan with only a Taiwanese passport and a Taiwanese identification card. The stay period was only valid for 15 days. With this policy in place, more Taiwanese came to Guam for vacation. With this growing tourist market in mind, China Airlines set up regularly scheduled flights between Taipei and Guam twice a week with a capacity of about 150 passengers per flight.
When China Airlines began regular flights, its goal was to develop its
CASE SYNOPSIS:
This is a case study about how a foreign carrier, China Airlines, adapts it strategy competing in the Guam-based airline industry. The case traces the company’s history on Guam from setting up its regular flight schedule between Guam and Taipei, through a pricing competition with its main competitor Continental Micronesia, to today where it occupies the sole market share of flights between these locations. In addition, the study explains China Airlines approach to its customers through partnerships with hotels and tourism companies in both Taiwan and on Guam; how this business has been affected by immigration regulations; and how it has become a successful carrier on Guam, in spite of failing to reach its initial goal for even being on Guam.
Business Background on Guam
China Airlines is a foreign aviation corporation with headquarters in Taipei Taiwan. Before 2000, China Airlines only flew charter flights to Guam, with the market here being limited by the requirement that Taiwanese hold American visas to enter Guam. These charter flights, or irregularly scheduled flights specially arranged according to the needs of customers, were more expensive than normal flights, and were held at peak travel times, such as Chinese New Year (which usually is in January or February and lasts about fifteen days), a golden travel time period throughout Asia. In March 2000, the United States passed a visa waiver policy, allowing Taiwanese to come to Guam directly from Taiwan with only a Taiwanese passport and a Taiwanese identification card. The stay period was only valid for 15 days. With this policy in place, more Taiwanese came to Guam for vacation. With this growing tourist market in mind, China Airlines set up regularly scheduled flights between Taipei and Guam twice a week with a capacity of about 150 passengers per flight.
When China Airlines began regular flights, its goal was to develop its