저가 항공사의 시장진입에 따른 기존 항공사의 전략적 대응

Abstract

The entry of Low Cost Carriers (LCCs) into the airline markets made the existing airline company take actions for securing the profits. This research classifies the possible actions of the existing airline company into two scenarios – i) enhancing service differentiation and ii) adopting a subsidiary LCC, and investigates the impact of two types of substitutability on the profits and compares the results between the existing airline and its competing LCC. We developed a game-theoretic model to analyze how the competition phase is changing under the diverse substitutability values. Differentiated service and the additional subsidiary LCC are proposed as a counter-strategy against the entry of the competing LCC. A variety of the profit comparison is carried out under different degrees of substitutability. The findings show that the appropriate substitutability is important to secure the competitiveness and that low levels of substitutability provides high profits in both cases of i) enhancing service differentiation and ii) adopting a subsidiary LCC. This study is conceptually meaningful in presenting the strategic implications of enforcing the competitive capabilities for the existing airlines. Practically, this study suggests that remedies which can be or are being applied to the current airlines for the managers. Although this study has found the strategical response and its related patterns, more empirical investigations based on the actual data are required for verifying the suggested model. The future research will cover the strategy which considers the capacity constraint and the fucus of the research can be converted from the perspective of the existing airline company to that of the LCC.