OurPLANE Harvard Case Solution & Analysis

Internal Analysis:

Internal analysis of OurPlane can identify and analyzed through evaluating the strengths and weaknesses of the company. One of the major strengths that OurPlane has is its rational profit structure that helps the company to maintain positive cash flows. In addition to this, another strength of the company includes its competitive pricing that is based on a combination of what the company’s customers were willing to pay and what the competitors charged. In addition to this, the price of the company is based on the cost that is required the company to buy, manage and fly the aircrafts. Moreover, the company has several types of planes to cater different customers. Another strength of the company that differentiate OurPlane from its contenders are that they are offering both small and medium sized planes to its customers whilst, its other competitors either offer single or medium-sized planes.

As far as the weaknesses of the company is concerned, OurPlane is not offering personalized services to the consumers like NetJets. Although, the company is planning to spend money on advertising and promotion, but still, it does not have enough resources to provide customization services to its customers. In addition to an absence of personalization service, OurPlane only have smaller planes to provide transportation services and its competitors are offering transportation services on larger planes. In addition to this, the major supplier of the company has filed for the bankruptcy because of the economic recession in the USA and other countries of the world as well. Moreover, the company has relatively small promotional budget in comparison with its competitors as NetJets is engaged heavily and aggressively in advertising and promotional activities.

External Analysis:

External analysis of the company can be done through analyzing the opportunities and threats of the company. One of the biggest opportunity from which the company can benefit is the recession in the economy. Because of the economic recession, the prices of the airplanes are declining on a very large extent and this can be treated as an opportunity for the company for sure. In addition to this, low prices of aircrafts will help the company to increase its market share by having the largest number of fleets in the industry. Traffic was also much more of an issue in the United States’ urban centers due to densely populated cities. The president of the company came to know that many of its customers lived in Los Angeles, but always flew from meeting to meeting because traffic in LA is terrible that even at a short distance, flying was faster than driving.

Along with opportunities, the company is facing various threats out of which, the most important one is the “green movement”. The trend to go green movement and leave a small carbon footprint was clearly a threat as the company has to follow it at any cost because customers are giving pressure on corporations to change their ways. In addition to this, the conditions of the company is an economy is rigorously bad because of the recession that is found to be the worst recession in the twenty-five year US history. Moreover, the prices of raw materials like oil and food is rising steeply and sub-prime mortgage fallout, the collapse of the American auto industry, large layoffs in a variety of industries along with the bankruptcy of reputable companies.

Ansoff Matrix:

The company is currently at the stage of market penetration, according to Ansoff matrix as the OurPlane is planning to adapt an expansion strategy which can lift the company from penetration to the development stage either product or market development.

Product life-cycle curve

Currently, the company is at the stage of growth in the product-life cycle as the company is aiming to increase its consumer base and revenues. At this stage, the company wants to optimize the resources to gain more revenues and consumer base. The concept of the product-life cycle suggests that as the company reaches the stage of saturation, consumers tend to shift. At the stage of growth, a company can generate as many users as possible to move ahead to the stage of maturation. Therefore, the company wants to take advantage of the growth opportunities in the industry and transform its non-paid users into paid users to generate more sources of generating revenue.

PEST Analysis:

Political: The political surroundings are encouraging of the industry and for the company like OurPlane, it is also an prospect to shine in other countries as well like Japan and Europe as well.

Economical: The economiccircumstances in Canada and America is quite established(keep recession factor aside) that is why the company has no threat from economic factors. On the contrary, the.....................................

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