OurPLANE Harvard Case Solution & Analysis

Introduction:

OurPlane is a fractional aircraft ownership company based in London. The recent CEO and President of the company is Graham Casson who himself was a pilot and passionate about planes. He built on a Santulli’s concept in his post graduate thesis in the university. With the help of fractional aircraft services, which is one airline services at a relatively lower and inexpensive price, the president launched OurPlane in March 1999 and offered several types of plane services to suit the different needs of various customers. In addition to this, OurPlane is providing various service offerings that is a leasing service, fractional share ownership and VLJ managed that is a jet management service.
ourplane Case Study Solution

Issues identification:

The main issue faced by the company was concerned about the performance of the company in the great economic recession period. The management at OurPlane is striving to handle the financial and marketing position of the company. In addition to this, the management of the company is also devising a growth strategy for the coming years. For the growth, there is a need to make a marketing plan so products of the company can be priced, placed and distributed appropriately. Moreover, the recession period was at its peak and the company was planning operations for the upcoming year.

Situational analysis:

It is 2008 and the CEO of the company along with CFO and COO is planning for the future growth of the company. As mentioned, North America along with all other world’s economies are struggling with an economic financial crisis. The impact of global financial crisis is extremely intense and the negative consequences of the crisis is emerging as most of the companies are filing for bankruptcy and the other companies are in extreme bad situation. However, the recession crisis brings opportunity for OurPlane in terms of getting airplanes in extremely low and discounted prices that in turn will double the size of company’s current fleet service. Although the objective of the company is clear that is to grow but it has to decide ways through which growth can be achieved. Two ways to grow is purchase aircraft and then seek out shareholders or the company can go for acquiring consumers and then purchase aircraft to suit their needs.

Competitor’s analysis:

The airline industry becomes extremely competitive and especially the fractional aircraft ownership industry is fairly competitive. One of the major competitor of the company is NetJets that was started by Santulli and it was known to be the first company to offer fractional aircraft ownership and thus the company is dominating in the market with having largest share in the market. The company is also engaged in aggressive marketing and promotion. In addition to this, the company is doing aggressive marketing through celebrity endorsements. One of the prime competitive advantage that NetJets have is personalization in terms of services it offered. However, NetJets is not the direct competitor of OurPlane as it is based on low cost regional travelling whilst NetJets is based on long distance worldwide travelling. Other competitors of the company include AirSprint, AirShares and Executive AirShares. These companies are similar in terms of size of OurPlane and these companies are in direct competition with OurPlane. AirShares Elite had a fleet of only Cirrus SR22s whereas Executive AirShares offered five different types of aircraft in its fleet. The major advantage of OurPlane over other competitors was that it offered smaller planes as well as jets while AirSprint, AirShares Elite and Executive AirShares offered either smaller planes. This in turn limit the customer options and customer base of the company.

Ourplane Case Solution

Consumer analysis:

The consumers of OurPlane are the small to mid-sized companies and companies are the major source of company’s revenue. These consumers are mostly the owners and use private jet for corporate use. OurPlane target customer include small to medium sized businesses with annual sales of around $10 million to $75 million. These are the companies who wanted to travel from one place to another for business purpose. The major reason behind travelling through private jets are the efficient and luxurious transport it provide to the companies. In addition to this, jet services are cost effective and time saving as well in comparison with other modes of transportation. Moreover, when it comes to purchasing a private aircraft or even a share of private aircraft...................

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President and Chief Executive Officer of fractional ownership of aircraft, based in London, Ontario, to develop a growth strategy and marketing plan for the coming year OurPLANE website, as there is an opportunity to buy a few more aircraft at very low prices. Students are asked to (1) conduct a thorough size-up of the company, (2) to complete the analysis of the industry of the fractional aircraft ownership industry, (3) analysis of the competition, (4) to complete the analysis of the consumer, (5) to calculate the company's profitability and efficiency, (6) the use of external and internal analysis to develop a growth strategy, and (7) to analyze the company's marketing strategy. "Hide
by Elizabeth M. Grasby, Emily Sanders Source: Richard Ivey School of Business Foundation 12 pages. Publication Date: September 7, 2009. Prod. # 909A22-PDF-ENG

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