FlyBaboo:

How High Can

It Fly?
VALUE CHAIN AND STRATEGIC
INNOVATION

Case Discussion
1.

Please provide Five Forces Analysis of the European airlines industry?

2.

What are the key elements of the FlyBaboo value systems (FlyBaboo
Value Chain)?

3.

What are the key elements of FlyBaboos strategic innovation?

4.

Which customer segment is FlyBaboo serving? What perceived value are

FlyBaboo aiming for?

5.

How could the upstart airline build sustainable competitive advantage

and what strategy should it pursue to ensure long-term growth and
profitability?

FlyBaboo Value Chain

Purchasing

Leadership

Operations

Culture

Marketing

Processes

Distribution

Infrastructure

FlyBaboo Strategic
Innovation
Traditional

EasyJet

VALUED
CUSTOMER

Everyone,
especially
business class

People who pay

from their own
pockets and some
who dont fly

VALUE
PROPOSITION

Flexible
Full Service
Worldwide
Network
High prices

One-way fares
Refunds, if plane is
late
No seat choice
Low prices
No meals

Purchasing

Integrated

Outsourced

Operations

Multiple planes for

mix of short and
long haul travel
Worldwide network

Short-haul routes
Single type of
plane
Select destinations

Marketing

Segmented
customers

Treat all customers

the same

VALUE CHAIN

FlyBaboo