Norwegian Air Shuttle Business Model
Added on 2020-12-30
10 Pages2795 Words76 Views
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BUSINESS MODEL OFNORWEGIAN
Table of ContentsINTRODUCTION...........................................................................................................................1Industry Overview..................................................................................................................1Introduction to Business Models............................................................................................1Historical background of Norwegian Air Shuttle Airlines (ASA).........................................2Cost Focus of of Norwegian...................................................................................................3Norwegian Business Model....................................................................................................5Norwegian Business strategy.................................................................................................5Financial Performance of Company.......................................................................................6CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
INTRODUCTIONAn airline is a business entity that provides air transport services for passengers orfreight. Airlines make use of aircraft to render these services and at times, may form alliancewith other competitive companies for codeshare agreement. The global airline industry isentering a stage where it faces huge competition from other international companies and haveslow market growth. Thus, airline companies apply business models to make money fromoperations. A business model represents a firm's mode of operations and strategy to sustain andearn in market. The present report is based upon Norwegian Air Shuttle ASA which is a highlysuccessful company and in modern context, is one of the largest European low-cost carrier(Klophaus, Conrady and Fichert, 2012). This report explores the way in which company appliesbusiness models so as to gain high stake in market and look at growth and expansionopportunities.Industry OverviewAirline industry in today's world is becoming highly competitive and gaining edge overmany other service sectors. In a world where globalisation is taking place at a fast pace, it is thatsector of economy that is highly associated with different parts of the world. It is a complexbusiness industry as its reach in terms of customers is very large. Due to its global presence, thissector of economy is highly required to be adaptive as well as possess effective skills to bringeffective strategical options for the business associations in this industry to sustain for a long run.At present, the airlines that have dominated the industry so far are ascertained to be network,legacy and carriers. At places where traffic volumes allow the growth, low cost carriers (LCCs)like Norwegian have also managed to plant roots and systematically function.Introduction to Business ModelsThe business model (BM) concept is a process adopted by companies that contains a setof elements and their relationships which tend to allow the expression of the business logic andstrategy of firm. In other words, in a prescribed manner, it is the value that company offers toindividuals or groups that represent themselves as customers or a specific target audience ofairline. It is a new concept in management that offers the investors a way that is practicallyaccessible, systematic, functional, logical and describes and evaluates the company at any givenpoint of time (Daft and Albers, 2015).1
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