Strategy Formation on BONZA Airlines

This report discusses the strategy formation of BONZA Airlines, an upcoming Australian low-cost airline. It explores Porter's generic strategy and Miles and Snow strategic models, strategic initiatives, marketing, and safe framework. The report suggests that the company can implement three strategies through the model of Porter's generic strategies i.e. Cost leadership, differentiation, and Focus. The report also recommends the company to apply Porter’s generic strategic model as it helps in providing a roadmap for achieving the objectives of the company. The report concludes by highlighting the importance of strategy formation in establishing organizational goals and creating opportunities for employment.

Strategy Formation on BONZA
airlines

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Porter's generic strategy and Miles and Snow strategic models of Bonza Airline.....................3
Strategic initiative........................................................................................................................4
Marketing...........................................................................................................................5
Safe framework............................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Strategy formation help to formation of new business in order to exploration and carry it
formation for improving product and services. Present report is based on Bonza that is upcoming
Australian low cost airline which is founded by former virgin blue administrator Tim Jordan.
Also, Report will discuss on strategy made my company in order gain competitive advantages
and support with with porter five forces and miles and snow strategic models of Bonza Airline.
MAIN BODY
Porter's generic strategy and Miles and Snow strategic models of Bonza Airline
Bonza airline is the upcoming low cost airline that was founded by Virgin Blue
administrator Tim Jordon. The company has planned to state its operation in 2022. The airline
company is funded and backed by 777 partners.
In order take competitive advantage the company can implement three strategies through
the model of Porter's generic strategies i.e. Cost leadership , differentiation and Focus.
 Cost leadership: Under the cost leadership strategy , company sets out to become one of
the low cost service provider in their industry. Low Cost Provider Company sell the
standard services and lay emphasis on gaining cost advantage form all the sources. The
primary purpose of using this strategy is that it helps in preserving the market leadership
by maintaining effective supply chain management(Tavalaei, and Santalo, 2019). This
strategy helps the company expand its market share by targeting the middle income
class .It is observed that middle class group lays emphasis on pricing factor and this is
considered as effective strategy to cater to the demands of the customers
 Differentiation: .It emphasize on increasing the customer base by adding more and
additional features. For example offering low prices can be the effective strategy in order
to balance the losses due to covid-19 on the industry. Being the new brand that offers low
prices can be a unique factor for the business.
 Focus strategy: The focus strategy is effective both on terms of low cost and offering
best value. The low cost focus strategy is adopted by serving the niche market segment
on the other hand best value focus strategy by understanding the needs and requirements
of the customers.
Miles and Snow strategies

It has been analysed that in order to succeed it is necessary for the company to develop
effective strategies that will help the industry to grow and expand its business. It is an
effective which help the company to create effective strategies in order to achieve the goals
and objectives of the company(Yanes-Estévez, and et.al., 2018) .The strategic tool includes
the Prospector, defender, analyser and reactor. With the help of this model , organisation will
help to analyse the stage in which the company falls , then it will becomes easier for the
company can make structure of their operation and plan to conduct the activities
accordingly.
Bonza airline is not well established company as compared to other airline companies so
it is necessary for the company to evaluate various elements before implementing any new
feature. The aim of this company is to increase the employment opportunities to those people
affected due to Covid-19. In order to accomplish the goals, it is necessary to implement
effective strategies with the use of effective models. It is recommended to the company to
apply Porter’s generic strategic model as it helps in providing roadmap for achieving the
objectives of the company(Halpern, 2018). Furthermore, Bonza airline being a low cost
airline can easily enter the new market and can take competitive advantage and for this it
need to make effective strategies services but on the other hand it does not include the
expensive features which is offered by other companies. One of the new and unique features
of the company is that it lays emphasis on providing job opportunities for the airline staff. It
is suggested to the company to take leverage of the low prices offered by the company for
their services and evaluate the market and plan strategies accordingly. In addition to this with
the help of using this model, the company can make modification in their strategies regularly
in order to provide quality services to its passengers.
Strategic initiative
The Bonza company has various opportunity to acquire success in the domestic as well as
international marketplace. with the assistance of strategic initiative the company can defeat the
competitor in the marketplace. in order to increase the awareness and attract large numbers of
customers the organisation will take various action as per the planning of being successive in the
marketplace for the long period of time. With the strategic initiative the organisation will
elaborate the vision and mission of the organisation to the employees and customer in order to

satisfy them with the services of the company (Mitchell,2018). The initiative the company will
use are mentioned as follow:
Marketing
Marketing is one of the most appropriate process of increasing the business and promote the
product and services. With the assistance of marketing the organisation can maintain the
relationship with the customers and suppliers. It will help in bringing the interaction among the
people and accomplish the goal of the company. Due to the marketing the organisation deliver
the information to the people about the airline facilities the company is offering to the customers.
The marketing is the essential plan of action the company should use which includes online as
well as offline modes of advertisement. In the online mode the organisation promote the business
on the Facebook, Instagram, google, snapchat, chrome, Pinterest, safari, yahoo etc. Due to that
the company is able able to target the right customers from the right marketplace (Tabesh,
Mousavidin, and Hasani, 2019). the indicative of social media or online marketing deliver
satisfaction to the customer by offering variety of facilities and values in effective as well as
efficient manner. Through this the organisation deliver transparency to the customer and
employees. The organisation provide information about the changing schedule of flights and
ticket booking process in order to keep the customer up to date with the airlines services.
The airline organisation Bonza will create the videos and post on the various platforms to help
out in booking the tickets through the various platforms. Moreover the company is able to
provide guidelines to the customers that also includes the important measures related to the
safety and security of the customer as per the policy programme of the organisation. In context
to that the organisation will utilized the advance technology that allow the organisation to focus
on potential and existing buyers of the organisation (Saunders, Mann, and Smith, 2008).
Furthermore the organisation can used the power full element of advance technology that is
influencers. The influencers are those who can easily communicate and conveniences the people
in adequate manner. furthermore it will result in increasing the sales of the company and allow
the organisation to approachable the potential customers of the organisation.
Apart from that the company has the opportunity to deliver its own loyalty program to reaching
out the customers in effective as well as efficient manner. due to that the airline is able to boost
the retaining of the existing customers. in loyalty programme the organisation will offer various

reward bonuses and specific points. It will increase the reputation or brand value of the company
in domestic as well as international marketplace. due to that the company is able to resolve the
issues of customer as soon as possible.
Safe framework
The safe framework will help the organisation in increasing the value of the company in
effective as well as efficient manner. according to the analysation the strategic initiative will be
suitable for the organisation as it is in demand and in trend. The large numbers of the customers
are depend on the technology and the various social media platform fulling their needs and wants
in effective as well as efficient manner. along with that it is suitable and acceptable because the
large numbers of the people or the buyer consider this plan of action in the process of decision
making. It is easily approachable by different variety of the customer who belongs to different
market that also includes international customers. it will improve the standard and the quality of
work. It will impower the business but on the other hand the organisation can face forthcoming
challenges or threats (Piccoli, Rodriguez, and Grover, 2020). For instance the constantly
increasing the numbers of the competitor in the marketplace will be disadvantages for the
organisation. The competitors are using the same strategies in effective manner which also
decrease the value of the company and can approach the other brands. Along with that the
chance of the cyber crime will be increased that also create trouble for the customer. The
possibility will be created due to the social media procedure as it determine the profile of the
customer in order to detect the taste and preferences of the customers. it create the security issue
Abd sometimes the the possibility of law suit will be increased. That also affect the brand value
of the organisation. In context to that the company need to take some important measure in
effective as well as efficient manner. in order to provide security to the customer the organisation
should asked for the permission of the customer weather they are willing to share the information
with the organisation or not. Along with that the organisation will focus on the technical issue
for the welfare of the company. apart from that the company need to collaborate with the
information technology special team to resolve the issues of thew customer (Akbar, and Ahsan,
2020).
CONCLUSION
It has been concluded that strategy formation helped company to established the organisational
goals that is help for stand with the competitive advantages. Also, on the basis of porter strategic

model company can deal with different situation and get the advantage of it. This is also help to
create the opportunity for employment in order to external analysis of the company. Present
study covered on the basis of cognitive conceptualisation skills, critical thinking analysis skill
and creative application skills.

REFERENCES
Books and journals
Akbar, S. and Ahsan, K., 2020. Investigation of the challenges of implementing social
sustainability initiatives: a case study of the apparel industry. Social Responsibility
Journal.
Halpern, N., 2018. Airport business strategy. The Routledge companion to air transport
management, pp.154-170.
Mitchell, D., 2018. To monitor or intervene? City managers and the implementation of strategic
initiatives. Public Administration, 96(1), pp.200-217.
Piccoli, G., Rodriguez, J. and Grover, V., 2020. Strategic initiatives and digital resources:
construct definition and future research directions.
Saunders, M., Mann, R. and Smith, R., 2008. Implementing strategic initiatives: a framework of
leading practices. International Journal of Operations & Production Management.
Tabesh, P., Mousavidin, E. and Hasani, S., 2019. Implementing big data strategies: A managerial
perspective. Business Horizons, 62(3), pp.347-358.
Tavalaei, M.M. and Santalo, J., 2019. Pure versus hybrid competitive strategies in the airport
industry. Transportation Research Part A: Policy and Practice. 124. pp.444-455.
Yanes-Estévez, and et.al., 2018. The strategic behaviour of SMEs. Administrative Sciences. 8(4).
p.61.
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