Lucky Air Case Study

Many of Lucky Air’s strategies for the Chinese market could apply in New Zealand. If Lucky Air were to expand into New Zealand, the company’s strategy of scheduling point-to-point flights, utilizing a single model aircraft, and immersing themselves in the e-commerce sector would be successful. On the other hand, their strategy of abandoning their call centers, focusing on tourism, and utilizing secondary cities are aspects which would not thrive in New Zealand and are things Lucky Air may want to reconsider.
Surprisingly enough, many of Lucky Air’s current strategy would be successful in New Zealand. First, their method of using point-to-point flights would thrive. One of the main benefits is that Lucky Air would be able to maximize their …show more content…
Besides the fact that e-commerce was the most cost-effective strategy, it was where the future was heading. While some countries, at the time, may not have been ready for this change, New Zealand certainly was. According to Internet Live Stats, in 2006 (the time the case was written) 69 percent of New Zealand’s population was active internet users. To compare, the U.S held 69.7 users (Berenguer, Shijun, Jing, Wang 5). Today, New Zealand beats the United States for active users: the U.S. is at 85.5 percent and New Zealand is at 89.9 percent (Internet Live Stats). Moreover, New Zealand has the “world's most profitable credit card markets” according to the Gareth Vaughan from the Interest Company. In other words, investing heavily into the Lucky Air website would prove help Lucky Air thrive in New Zealand. Moreover, incorporating PayPal would not only increase customer base, but it would help non-internet consumer feel more comfortable with this new purchasing …show more content…
It is true that tourism generates 12.9 billion NZ dollars and is 5.6 percent of their GDP (Tourism New Zealand). However, those not all who fly in and out of the country are tourists. Residential and business travel are important factors for Lucky Air to consider. The Ministry of Business, Innovation and Employment states, that 44 percent of travel in New Zealand came from residents, 54 percent resulted from overseas visitors and two percent came from permanent or long-term residents. Thus, if Lucky Air’s e-commerce website focused strictly on tourism, hotels, rental cars, and other amenities, they would miss out on a large market. The websites must be inclusive for a variety of travelers and a rewards program may be beneficial for New Zealand residents who travel