Innovation Strategy for Extendo Flights: A Competitive Analysis Report

This report examines the innovation strategy of Extendo Flights, a new airline focusing on the domestic market in North America. It discusses the importance of innovation in gaining a competitive advantage, particularly in a highly competitive industry. The report reviews literature on innovation, emphasizing the need for organizations to adapt and integrate innovative practices to meet customer demands and maintain brand loyalty. It analyzes how Extendo Flights aims to achieve this through various strategies, including focus groups, in-flight social networks, online video marketing, customer loyalty programs, and personalized mobile solutions. The report also evaluates the challenges and opportunities for Extendo Flights, concluding with recommendations for fostering a culture of innovation and achieving long-term success. The analysis highlights the significance of continuous innovation, research and development, and employee empowerment in driving the company's growth and competitiveness.

Abstract
Innovation plays a critical role while launching of a new business or product. The once so
reliable techniques and tools which were used for introduction of new enterprises do not work
well owing to the emerging characteristics of the networks. Therefore, it is important for the
innovators to rise above the efficacy of promotions, advertising, sales force etc. in order to
become successful. Therefore, executives have to be innovative in order to bring innovations into
the marketplace. There is a need to understand social, commercial as well as physical networks
so as to develop new innovation tactics.

Table of Contents
Abstract............................................................................................................................................1
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Literature Review........................................................................................................................3
Critical Evaluation.......................................................................................................................6
Conclusion.......................................................................................................................................7
Recommendations............................................................................................................................7
References........................................................................................................................................9

Introduction
The innovation strategy can define the important role of innovation and a direction for execution
of this innovation. The organizations need to interact with the customers to take an execution and
pragmatic-oriented view. Further, a common understanding has to be developed for defining the
purpose of the innovation strategy and the ways to commercialize the new ideas. The word
innovative strategy must emphasize on the something that impacts the company potentially and
does not merely include incremental product lines extensions.
This paper focuses on emergence of the Extendo Flights. Extendo Flights is the new airline base
set up in the North America, dealing primarily in the domestic base. The organization has to
operate in a highly competitive industry. The flights have been started keeping in mind the new
demands of the customers and scarcity of the good domestic flights. The executives of the flights
were seen to address the necessity of the efficient domestic flights and to reduce the problems
encountered by the customers. The organization has understood the importance of innovation in
the field so as to connect with the customers and resolve their issues. The organization aims to
maintain strong brand loyalty and customer service, along with keeping innovation as an integral
key in its functioning.
Along with coming up with the demands of customers like comparative low fare, high
interaction with customers, fulfilling their needs etc.
Discussion
Literature Review
21st century have been agreed upon as the era based on information, knowledge and innovative
economy. The success of the organization is seen to be dependent on the experience, knowledge,

qualification and creative ability of its employees and therefore it places a strong emphasis on
research and development and learning (Hamel & Green, 2007).
The process of innovation is highly important in order to achieve a competitive advantage over
the others in various aspects. The organizations can inculcate the various characteristics of
innovations which are:
1. Ability to substitute the products and services which are considered to be outdated.
2. The new services and products will help in maintaining market shares and improving
profitability.
3. The company should focus on the growth by the means of non-price factors like quality,
design, individualisation, etc.
4. Innovative processes leading to shortening of the production time and speeding up new
product developed as compared to their competitors.
It has been mentioned by Martín-de Castro et al. (2013) that by development of successful
technological innovations it is important to create as well as sustain the competitive advantage of
the organization. Furthermore, the expenditure on research, development as well as emergence of
innovations in the company can be determined as the characteristics for gaining a major part of
the market. The already established organizations must have their original strategies as well as
the support from the knowledge that flows from one organization to other (Autant-Bernard,
Fadairo & Massard, 2013). This fact was further supported by Noruzy et al. (2012) and Autant-
Bernard (2001). All these researches demonstrates the importance of innovative activity of the
organizations that are seen to influence the competitiveness on the basis of the abilities and
inimitable skills. Less costly products are produced by using innovations as a means of achieving
higher competitiveness which also has a better quality as compared to its competitor

manufacturers. When an organization is seen not capable of coping up with innovations on a
regular basis, the organization might lag behind from its competitors and the initiative must be
taken over by other entities. According to Schumpeter (in Tidd et al., pp. 8, 2006), while
emergence of new venture the entrepreneurs should always attempt to use technological
innovation even while launching a new product or the services or even an entirely new process
while production process which will provide a strategic competitive advantage. A competition
will be created which will not attach the outputs of the organization or the profit margins but will
improve the existence or essence of the organization. Therefore, from this it can be suggested
that innovation is highly important within the innovation frames, which is the necessity for the
knowledge, innovative and information society for following large organizations which are
engaging in innovation and setting up the direction for the other people (Tushman, M. & Nadler,
D., 1986). However, in order to be innovative, the organizations needs to represents an open
approach reaching beyond the threshold of an organisation. The internal environment of the
organization should have an appropriate pre-set innovative culture. Further this culture must be
utilisation of specialists and teams, transience of organisational structures, necessity of flexible
and speedy changes which will be responded with new opportunities, high market share and high
margin profits.
When the top management supports the innovation, the organization can create innovative teams
which are composed of highly knowledgeable employees. The key to a new venture with
innovative ideas is the incorporation an innovative team which must be a natural point since the
key employees were gathered in order to create great innovations that would impact the entire
organization. The innovative culture of organization is supported by a member of teams who
share the same knowledge and vision towards innovation implementation. The organization

must focus on finding new solutions to the problems and gather as much information as possible
in order to create a sufficient base for creativity.
Critical Evaluation
The Expendo Airlines in order to operate in the competitive industry has found that innovation is
the key to gain competitive advantage and therefore it has introduced a focus group program
where a group of 50 flyers to present their innovative ideas for the flyer rewards. Furthermore,
the Airlines also introduced an in-flight social network which would enable the passengers to
connect during the whole course of the flight. While their launch, the airlines will produce a six-
hour video which will provide details of an entire in-flight experience on the Airlines along with
the various benefits like online booking, instant food orders, online ticket detailing etc. and will
also share their information on Facebook and Instagram so as to attract the young users and
flyers. The organization is adding and rotating crew members and pilot-written spotlights for
engaging the customers, easing fears of flying as well as ingratiate the participation of family in
order to increase their brand recognition. The airlines will promote special services, promotions
and testimonials using their online video links to YouTube so as to increase the site ranking.
Further customer loyalty programs will be indicated and improved by the use of off-booking
season, mobile redemption and promoting online services. The organization will personalize
their mobile solutions for customer communications, brand recognition, marketing efforts,
servicing options along with the web-to-mobile friendly browser, hybrid solutions that are
coupled with SEO- enriched online as well as mobile content for increasing the ranking and
exposures for targeting the consumers.
The organization will also provide mobile-only applications for offering the e-client database,
participation in Groupon offers send relevant specials to their selected flyers. The organization
will also offer e-alerts, messages, promos, tips with the instant flight information. The

organization will also organize a last-minute auction in order to fill the vacant seats of their
flights. Overall the organization will aim towards reducing the hassle for a customized travel
experience.
Conclusion
The act of innovation and constant innovation is a key source of competitive advantage which
helps in determining the economic success of the organization. In case the newly emerging
organizations have to survive the turbulent environment of the organization. There is a need to
make a firm effort for introducing the innovative creativity and approach for which the constant
support of the management is a must. One of the key factor of innovation, is the process of
attaining knowledge and the senior management can share their experience with the newly
appointed or fresher’s in order to encourage them towards success. On evaluating the case of
Extendo Airlines and the importance of innovation and necessary knowledge, the organizations
should put emphasis on the constant innovation and establishing innovative culture in the
organization. Further in order to be innovative, the establishment of a research and development
department along with the innovative environment is not enough. The organization should
provide their employees with the creative time for self-realisation. And the managers and leaders
must support the initiatives by the individuals and creativity of their employees.
Recommendations
In order to gain competitive advantage there is a need to be innovative and more competitive
than the rivals. The organization needs to develop a suitable innovative culture in the
organization from the very beginning and should be in a major support of continuous innovation.
Furthermore, the innovative potential must be strengthened by linking the fragments of
knowledge in the current situation that can be practically applied in the new venture and by

realizing these ideas. The organization should further be able to stimulate the individual ideas
and should be motivating enough to trust their leaders and to come up with innovative ideas. The
organization should have a cooperative external and internal environment which should
continuously support its employees in order to become the largest innovator group.

References
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Autant-Bernard, C., Fadairo, M. & Massard, N. (2013). Knowledge diffusion and innovation
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Autant-Bernard, C. (2001). Science and knowledge flows: Evidence from the French case.
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Noruzy, A., Dalfard, V. M., Azhdari, B., Nazari-Shirkouhi, S. & Rezazadeh, A. (2013).
Relations between transformational leadership, organizational leasing, knowledge management,
organizational innovation and organizational performance: an empirici investigation of
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Tidd, J., Bessant, J. & Pavitt, K. (2007). Řízení inovací – zavádění technologických, tržních a
organizačních změn. Brno: Computer Press.
Tushman, M. & Nadler, D. (1986). Organizing for innovation. California Management Review,
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