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Business Strategy Case Study: Hawaiian Airline

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Hawaiian Airlines has positioned itself in a narrow market while constantly trying to maintain a low cost structure. The airline is considered to be in a narrow market because their only focus is on flights to and from Hawaii, which limits their ability to reach the broader market ("Hawaiian Airline Website", 2016). Although the company is in a narrow market, they have been able to see significant growth over the past five years. In 2010, the airline only flew within the Hawaiian Islands and between the U.S. West Coast. By 2015, the company had expanded their flights to Tokyo, Osaka, Seoul, Beijing, New York, and a few other locations (Karp, 2015). From 2014 to 2015, the airline saw a 4.7% increase in passengers ("Hawaiian Airline Website", 2016). According to Hawaiian executive VP and Chief Commercial Officer, Peter Ingram, the company is also considering to potentially expand into Australia, Korea, and China. Currently, the company obtains about 20-25% of the market share for Hawaiian travel and with their continued growth model they will be able to increase their share over the next few years (Karp, 2015). …show more content…
For the past 11 years, the airline has been ranked #1 Nationally for on-time performance and was even ranked one of the top domestic airlines by Conde Nast Traveler, Travel + Leisure, and Zagat ("Hawaiian Holdings Reports 2015 Fourth Quarter and Full Year Financial Results", 2016). Hawaiian Airlines has also been recognized for offering complimentary food and wine on all flights, not just first class, which is included in the ticket price (Karp,

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