What Management Is
What Management Is
Question 1
An ‘External Orientation’ rather than an ‘Inward Focus’ is useful in understanding the concept of value. Describe ‘Value Creation’ from the context of Low-Cost Airlines (No-Frill airlines). Compare it with how the Indian Railways creates value.
Answer 1
Value creation is a term which cannot be defined / quantified specifically and measured accurately or attributed a particular definition. It has a distinct and broad view and originates from the customers point of view rather than monetary value which originates from the organizations financials. An external orientation is important and useful to understand value rather than an inward focus.
Value Creation from the context of low-cost airlines in India
Customers Define Value:
India is one of the fastest growing aviation industries in the world. Because of the introduction of liberalization policy and deregulation policy in the Indian aviation sector, the industry has witnessed a vast difference with the entry of the privately owned full service airlines and low cost carriers. Besides, there was significant increase in the number of domestic air travel passengers. Some of the factors that have resulted in higher demand for air transport in India include the growing purchasing power of middle class, low airfares offered by low cost carriers and the growth of the tourism industry in India.
Now focus is towards customers. Today there are new segments of travelers; the leisure customers and the first time travelers apart from the earlier Business travellers.
Low Cost:
Earlier domestic flying in India was as costly as international flights. The main airlines back then were Air India and Indian Airlines. But today, there are multiple airlines operating in the domestic routes, thereby giving Indian travellers competitive prices. Till the early years of the 21st century, trains were the best means (price wise) for the lower and middle income groups in India had for travelling inside
Question 1
An ‘External Orientation’ rather than an ‘Inward Focus’ is useful in understanding the concept of value. Describe ‘Value Creation’ from the context of Low-Cost Airlines (No-Frill airlines). Compare it with how the Indian Railways creates value.
Answer 1
Value creation is a term which cannot be defined / quantified specifically and measured accurately or attributed a particular definition. It has a distinct and broad view and originates from the customers point of view rather than monetary value which originates from the organizations financials. An external orientation is important and useful to understand value rather than an inward focus.
Value Creation from the context of low-cost airlines in India
Customers Define Value:
India is one of the fastest growing aviation industries in the world. Because of the introduction of liberalization policy and deregulation policy in the Indian aviation sector, the industry has witnessed a vast difference with the entry of the privately owned full service airlines and low cost carriers. Besides, there was significant increase in the number of domestic air travel passengers. Some of the factors that have resulted in higher demand for air transport in India include the growing purchasing power of middle class, low airfares offered by low cost carriers and the growth of the tourism industry in India.
Now focus is towards customers. Today there are new segments of travelers; the leisure customers and the first time travelers apart from the earlier Business travellers.
Low Cost:
Earlier domestic flying in India was as costly as international flights. The main airlines back then were Air India and Indian Airlines. But today, there are multiple airlines operating in the domestic routes, thereby giving Indian travellers competitive prices. Till the early years of the 21st century, trains were the best means (price wise) for the lower and middle income groups in India had for travelling inside