has invented strategical moves that could lead the company to “increasing
profits by reducing cost, while charging indystry average-prices” (Mind Tools,
2017, p1). Through the companys’ philosophy
and continuus improvement, Aegean had created a carefully designed
business modelwhich “offers high quality of services to its customers at
reasonable prices” (CFA Institute, 2015, p4). Building customer loyalty,
reducing the rate of loss of customers and minimizing costs (operational or
network) helped the company increase its market share over the years, gaining
the award by SKYTRAX as the best
regional airline in Europe in customer service for 2009,2011, 2012, 2013 and
takeover of its smaller competitors (Air Greece, Chronus Airlines) as well as
the elimination of its biggest competitor, Olympic Air) helped the company to
increase its market power by reducing competition and to increase efficiency
through reducing surplus capacity or resources.
The greater scale of the combined operations of Aegean and Olympic Air
led to increased production efficiency as well as bargaining power with
suppliers, gaining at decreased prices and, finally, increased combined
companys’ capabilities (eg: technology-bigger fleet).
the strategy of the company to join Star Alliance in 2010 gave Aegean specific
benefits – like providanceof customers lower prices while simultaneously
provide a “from anywhere to anywhere”service that Aegean could’t otherwise
reach. Futher,the cooperation with the Strategic Alliance expand its lists of clientele “While at the
same time enjoying the operational benefits through the common use of terminals
and facilities (CFA Institute, 2015, p5).
differentiation generic strategy, Aegean offers high quality services and adds
value to its customers by satisfaction of what customer cares about: reliability,
responsiveness, assurance, empathy as well as tangibles.
other words, the company used a business model making the intangible tangfible,
customizing the standard product to customer personal nedds, reducing perceived
risk, giving attention to personnel training and as a result controlling
company was honored as the “Airline of the decade” for the years 2001-2010,
rewarded for the total number of passengers in those years, by Athens
International Airport “Eleftherios
Venizelos” (Aegean Sustainability Report, 2016, p27).
December 2016, Aegean received the “Business Excellence Award”in the “Growth
Awards” ceremony organized by Eurobank and Grand Thorton .
Aegean and Olympic Air won the International
“Fast Travel Greek Award” from IATA as a reward fore the improvement of
passenger experience (Aegean
Sustainability Reposrt, p27).