BIZ301: In-Flight Wi-Fi Venture Plan - Innovation, Market & Strategy

This report presents a venture plan focused on providing Wi-Fi services on airplanes, addressing the increasing demand for internet connectivity during flights. It identifies a market gap, particularly in regions with limited service providers, and analyzes opportunities arising from the growing use of smartphones and social media. The plan considers the challenges of high technology costs, dependence on airline industry standards, and competition from existing providers like Gogo. Strategies for customer segmentation, market positioning, and financial viability are discussed, emphasizing the need for high-quality service to attract and retain investors. The report also explores potential risks and uncertainties associated with the venture, highlighting the importance of adaptability and continuous improvement to ensure long-term success. Desklib provides access to similar solved assignments for students.

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Title: Wi-Fi Services in Flight
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Contents
Idea Title....................................................................................................................................2
Executive Summary...................................................................................................................2
Analysis of Possible Market Gap/Opportunity..........................................................................2
References..................................................................................................................................6

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Idea Title
The best title for the business idea of Wi-Fi on airplanes will be “Say No to Airplane
Mode on Flight”.
Executive Summary
People connect with the internet and the Wi-Fi services are increasing with each
passing day. Staying away from the internet even for an hour is touted as horrifying and a
troublesome experience. Due to this scenario of the society and the dedication of the people
towards the internet has resulted in many changes in the IT technologies. The facility of Wi-
Fi is available in bus, car, train, ships, and many other remote locations. But the airplanes
were the only place where it was forbidden, but not for long, as with the new development in
the IT industry and the emerging needs of the people to have easy access to the internet has
forced the airline operators to provide the Wi-Fi services in the airplanes. There are some
organizations who identified this needs a decade ago and thus they have utilized the new
technology to facilitate the visitors with in-flight internet services. Thus, to adapt it as a
business idea in the current circumstances is a very wise and fruitful decision. There is only a
handful of organizations that are providing this service in the airplanes successfully. So, for a
new startup, the approach of utilizing this innovative idea to conduct business is a very
effective approach, which also requires a large amount of research and an adequate planning
and analysis of the complete business plan. One organization that has been taken into
consideration while understanding this business idea in detail and in-depth is the Gogo, which
provides internet services in the major flights of the United States of America, covering over
80% of the market. The financial costs that will be required for this business plan is huge,
especially for the startup, the purchasing of the latest technologies, installation, hardware,
software, marketing, and many other expenses. According to this the amount required for this
plan will be around six billion, which will be needed for all these processes and more. Thus,

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the plan requires big and many investors. But the biggest issue with the plan and the investors
is that there is a huge risk, as the service standard which the customers wants is mostly not up
to standards, a problem which has been reported in the Gogo airlines, and due to this reason
the investors part away from the organization, so for maintaining the investors, the plan has
should have the main focus on providing high standards service.
Analysis of Possible Market Gap/Opportunity
In the last decade, the telecommunication technologies and the Wi-Fi have evolved
massively. The main reason behind this success is the advancement in the telecommunication
industry with the invention of smartphones (Andrianova, 2017). In the present times, majorly
every person possesses a smartphone, also the reduction in the prices and the advancement in
the technology of the gadgets like tablets, laptops, and many others helped in further
development in the telecommunication industry and also in the IT technologies. The people
of the current generation cannot imagine a day with no internet services and the involvement
on social media has contributed to intensifying this situation. So, according to the
circumstances that have been mentioned above the business idea of becoming an internet
provider on the airplane is very fruitful according to this situational analysis (Clarke, 2016).
For a business idea analysis, the market on the aspects of possible gaps and
opportunities is very crucial for all business plans. Thus, the business idea of Wi-Fi services
on airplanes has to undergo a gap analysis (Di Corato, 2013). Gap analysis is a very effective
strategic tool that is utilized by organizations to test a plan, idea, and strategy, to foresee the
organization’s approach to performance and potential. In simpler words, it is important for a
business idea to be analyzed in a way that clarifies the assumptions and displays the true
potential of the idea, so the organization can proceed with it. And if a gap is analyzed in the
idea, then appropriate strategies are implemented to fill this gap. The business plan Wi-Fi

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services on the airplane belong to the category of business to consumer, and if the market
demand is higher than the supply then this idea will be very beneficial in the making profits
(Ilyina-Sidorova, 2018).
There are billions of people around the globe who want internet services on the
airplanes and the suppliers of this service are very few, especially in the Asian countries. The
organization Gogo is the only organization that has received huge prominence and success in
this field (Mohammed Peer, 2012). Thus, in the context of the relationship between the
demand and supply, the idea is a boon and should be worked on immediately. But there are
some other factors too that have to be analyzed. According to the issues that are very
common and will definitely erupt in this business plan is that the technology and the
installation charges are very high which have reduced the profit margin with a large scale,
providing the service providers with very less profit. The idea of internet in-flight is unique
which is its positive trait, but the main issue is that the organization will be needing profits to
further develop and grow in the market, but with low profits, this will be a difficult task as it
has to expand too, which requires a huge amount of investment (Mortazavi, 2017). The latest
technology that will be utilized for the business idea is very expensive. The other issue which
the business idea has is that it has to work according to the requirement of the airline
companies and the companies that manufactures airplanes. So basically, the idea has to be
implemented according to the direction that is proposed by these two industries. Now, this
will restrict the business idea as it will be governed by the airlines and the companies that
produce airlines. There is also a huge risk factor due to the uncertain changes that might be
asked by the companies in the business plan. These two gaps that have been identified are big
hurdles in the development and growth of the business plan, and thus there are certain
strategies that have to be implemented to control and curb these issues (Muda & Mohd
Suradi, 2012).

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Apart from these issues, the entire business plan according to the market analysis has
shown a lot of potentials, especially with the development of smartphones and social media.
So, before the implementation of a plan, it is very important to analyze the market
opportunities.
 The first step towards analyzing the market opportunities is by analyzing the customer
segment. Now, the number of people that use the internet is immense. From the age
group of14 to 70 years, all use the internet very actively. Also, the same people travel
on flights too, even more after the flight fares has been reduced. Thus, the customer
segment that the business idea is targeted to be is very big that indicates that the
business plan has huge potential (Simón-Moya & Revuelto-Taboada, 2016).
 The different purchase situations will also help in identifying opportunities. People
travel in flight for both need and leisure, this means that people travel on flights for
work, vacations, and many other reasons. This indicates that the customer will
purchase the service whenever they will travel by flight and there are multiple
purchasing situations.
 The business plan exhibits that the expansion and development of the business are
directly associated with other industries too. For the business plan, the one thing that
promises immense growth is the increase in the internet users that is shooting higher
with each passing day and the increase in the segment of people who are opting to
travel by flight due to the reduction in fares. Thus, with the development in both these
industries, the idea of Wi-Fi on airplanes will also develop and prosper(Tsai, Hsu &
Chou, 2011).
 The main competitors who are providing similar services in the current market are
only one that is Gogo, which is mainly catering their services in the region of the
United States of America. The other upcoming organizations that have invested in the

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same field are SmartSky, ViaSat, Inmarsat, Yahsat, and Iridium. Amongst these
different organizations, most of them are on the developing stage. Thus, there are no
major competitors who have carved a niche for themselves or have gained loyal
customers. This indicates that the idea has another market opportunity that is huge as
currently the competition in the market has still not intensified (Usländer & Batz,
2018).

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References
Andrianova, Y. (2017). Wi-Fi: Trends and Projects. Lastmile, 3(64), 34-39.
Clarke, R. (2016). Are Popular Wireless Services Like Wi-Fi and GPS Becoming the Pirate
Radio of the 21st Century? SSRN Electronic Journal, 1(1), 5-20.
Di Corato, G. (2013). The Internet Service Provider Liability in Online Trademarks
Infringement. SSRN Electronic Journal, 1(1), 15-30.
Ilyina-Sidorova, I. (2018). Troubleshooting in Wi-Fi networks. Lastmile, 2(6), 40-51.
Mohammed Peer. (2012). A gap analysis of service expectations and perceptions in private
general practice. African Journal of Business Management, 6(1), 16-40.
Mortazavi, S. (2017). The Safety Issues of Onboard Wi-Fi: Possible Interactions of Oxidative
Stress-Causing High Altitude, Cosmic Radiation, and Wi-Fi Radiation. Reactive Oxygen
Species, 1(1), 10-25.
Muda, N., & Mohd Suradi, N. (2012). Factors Affecting Customer Satisfaction of the Wi–Fi
Services. JournalTechnology, 60(1), 35-78.
Simón-Moya, V., & Revuelto-Taboada, L. (2016). Revising the predictive capability of
business plan quality for new firm survival using qualitative comparative
analysis. Journal of Business Research, 69(4), 1351-1356.
Tsai, W., Hsu, W., & Chou, W. (2011). A gap analysis model for improving airport service
quality. Total Quality Management & Business Excellence, 22(10), 1025-1040.
Usländer, T., & Batz, T. (2018). Agile Service Engineering in the Industrial Internet of
Things. Future Internet, 10(10), 100.

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