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LoFare Airlines

Key Learning points

Much has been written about the "positioning" of low-fare airlines, compared with full-service operators - how low pricing and frequent, reliable flights to many destinations attracts many more customers. But many have tried this strategy, and most failed (48 out of 60 in Europe for example!), so positioning is not enough. The game offers learning about how to implement strategy over time – assessing the business and its market, setting appropriate objectives, then making choices that steer the strategy to deliver those results.

Further learning focuses on how to manage strategy against competitors, and as conditions change over an industry’s lifecycle.

Like all our games, LoFare Airlines demonstrates the simple, standard rules of strategy and performance:

  • Performance over time depends on the organisations resources
  • Those resources are won and lost over time
  • Growth depends on existing resources, management choices and competitive factors

This game also exposes some other specific and important learning points:

  • Strategy is often more about creating and capturing a potential opportunity than it is about capturing 'market share'’ of some market that already exists
  • Competition is often about competing for mark access (routes in this case) – retail store chains face similar challenges
  • Strategy is abou choices – whether to drive for growth or not, whether to take on competitors or seek a quieter life
  • Management of strategy mus adapt as industry conditions change – from the small initial opportunity, through rapid growth with intense competition, to a mature end-game
  • It is very hard to sustain profitable growth when intense rivalry is competing away good prices and hitting profit margins. Simply sustaining profits is an achievement in these cases.
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The LoFare Airlines Microworld has been selected as a complementary simulation to Contemporary Strategy Analysis by Robert Grant.

Registered teachers can request free evaluation licences and access to Inspection teaching material.

If you hold an academic post registration is free - use our contact form to register and request registration as a teacher.

Videos

One minute overview: (no sound),
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LoFare Airline Microworld Tour
(26 minutes)
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Strategy frameworks for LoFare Airlines
(48 minutes)
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