Aegeanhas invented strategical moves that could lead the company to “increasingprofits by reducing cost, while charging indystry average-prices” (Mind Tools,2017, p1). Through the companys’ philosophy and continuus improvement, Aegean had created a carefully designedbusiness modelwhich “offers high quality of services to its customers atreasonable prices” (CFA Institute, 2015, p4). Building customer loyalty,reducing the rate of loss of customers and minimizing costs (operational ornetwork) helped the company increase its market share over the years, gainingthe award by SKYTRAX as the bestregional airline in Europe in customer service for 2009,2011, 2012, 2013 and2014.Thetakeover of its smaller competitors (Air Greece, Chronus Airlines) as well asthe elimination of its biggest competitor, Olympic Air) helped the company toincrease its market power by reducing competition and to increase efficiencythrough reducing surplus capacity or resources.
The greater scale of the combined operations of Aegean and Olympic Airled to increased production efficiency as well as bargaining power withsuppliers, gaining at decreased prices and, finally, increased combinedcompanys’ capabilities (eg: technology-bigger fleet).Also,the strategy of the company to join Star Alliance in 2010 gave Aegean specificbenefits – like providanceof customers lower prices while simultaneouslyprovide a “from anywhere to anywhere”service that Aegean could’t otherwisereach. Futher,the cooperation with the Strategic Alliance expand its lists of clientele “While at thesame time enjoying the operational benefits through the common use of terminalsand facilities (CFA Institute, 2015, p5).
Throughdifferentiation generic strategy, Aegean offers high quality services and addsvalue to its customers by satisfaction of what customer cares about: reliability,responsiveness, assurance, empathy as well as tangibles. Inother words, the company used a business model making the intangible tangfible,customizing the standard product to customer personal nedds, reducing perceivedrisk, giving attention to personnel training and as a result controllingquality.Thecompany was honored as the “Airline of the decade” for the years 2001-2010,rewarded for the total number of passengers in those years, by AthensInternational Airport “Eleftherios Venizelos” (Aegean Sustainability Report, 2016, p27).InDecember 2016, Aegean received the “Business Excellence Award”in the “GrowthAwards” ceremony organized by Eurobank and Grand Thorton .Also,Aegean and Olympic Air won the International “Fast Travel Greek Award” from IATA as a reward fore the improvement ofpassenger experience (Aegean Sustainability Reposrt, p27).