For purposes of this discussion board you are asked to selec

For purposes of this discussion board, you are asked to select a specific new product or service for discussion. This product must be different from any example already posted by your classmates.

Your initial posting should consist of a minimum of 3 paragraphs, and any outside sources that you use must be appropriately cited.

Your discussion should include:

A brief (one paragraph) discussion of the new product. Remember, this product must be different from any example already posted by your classmates. Provide a link to the web site for this product.

Identify and explain the environmental force(s) that created the demand and opportunity for this product. Examples of these factors would be: consumers changing their wants and needs (social); changes in technology that makes a new product economically feasible or desirable or renders an existing product obsolete (technology); the establishment of new government regulations or legislation (regulatory); changes in the economic landscape that affect consumer purchasing power and spending (economic); the entrance of a new competitor in the market or alternative forms of competition (competition).

How does the new product satisfy the demand created by the environmental forces you identified? Be specific.

Identify brand, product and generic competitors for this product. Remember, there are different types of competitors. For example, Coke and Pepsi would be considered “brand” competitors because they offer the same basic features and benefits at similar prices. However, Coke and Mountain Dew would be considered “product” competitors because they compete in the same product class (soft drinks). Additionally, Coke faces “generic” competitors such as water, tea, coffee and juice because these products satisfy the same basic need (thirst).

Solution

The service is Aviation in India, which has grown significantly over past two- three years. The factors contributing to this abrupt and rapid change in demand for air travel are multiple. The reduced global prices of Aviation Turbine Fuel, Friendly policies of the Government like development of new airports and opening of new sectors under a new initiative UDAAN, rapidly rising middle class of India that has high spending power, thanks to the higher disposable income and capacity of alternative means of transport like Railways and Roads that has reached to the saturation point, leading to more and more travellers switching to the airlines that cost almost the same if ticket is purchased a month in advance.

The airlines save time and money for those who live in metros and tier I and II cities connected by air. It is hassle free, safe, quick and reliable in comparison to the state run railways that is grappling with old infrastruture, pressure to maintain the fare on the lower side and retain punctuality. With new policy of state, many new places are getting connected through air, at a very competitive price for the travellers.

Brand competition is between the state run airline ( Air India) and other private players, the later being more efficient, cost effective and competitive, causing a tough time for the former. The competition in product term is between helicopter. chartered plane and air services, where the connectivity of first two is extremely limited and out of reach of most of the customers. Airlines too have limited connectivity, mainly to bigger cities, allowing only a few to avail the service. In generic term, the airlines compete with buses, private vehicles, ships and boats ( very few). Road and rail are still much suitable and cost effective for smaller distances and to the far flung areas connected by only road.