Friday, November 08, 2002

"The $199.86 Solution: Microtel's bargain-basement PC is OK for basic computing, but face it -- the Lindows O/S is a major trade-off", BusinessWeek November 11, 2002. [Categories: Demand (network externality in O/S), Market Definition, Microsoft] 3:55:06 PM    comment []

"Airbus is Set to Give Final Nod for Superjumbo Jet", WSJ December 19, 2000. "Airbus Comes of Age with A-380 Super-Jumbo Jet Challenges Boeing's Last Monopoly", USA Today June 21, 2001. "Boeing Weighing Speed and Efficiency in Deciding Newest Plane", Associated Press November 7, 2002. Summary: Airbus' super-jumbo has received numerous orders.  Boeing appears to have backed off from competing directly against Airbus' super-jumbo, instead favoring a smaller plane that will greater distances.  According to Boeing, this plane may also be much faster (as in the Sonic Cruiser idea) or just super-fuel efficient. (See most recent AP article.) [Categories: Airlines, Demand, Game Theory (first-mover, threats & commitments), Market Definition] 3:52:25 PM    comment []

"Air Canada Rides Out Stormy Weather", WSJ October 28, 2002. "Air Canada this summer started four niche airlines: Tango (a low-cost, low-fare national carrier), Zip (a low-fare carrier in Western Canada) ... [and is considering niches focused on] cargo service and business travel."  (See also Air Canada Vacations and Jetz -- the new business travel-oriented subbrand.) What do you make of this "subbrand strategy"? Demand issues: Is flying Tango substantially different than flying on a standard flight with a cheap, restricted ticket?  What about flying Jetz vs. on a standard flight in business class?  Cost issues: Are cost advantages to segment-specialization great enough that we can ever expect airlines to totally specialize in this way (for all of their flights)?  In particular: who is more vulnerable to entry, an airline that carries several types of passengers on several flights or one that carries only a single type of passenger on each flight? Price Discrimination Issues: Does Tango need to require advance purchase and a Saturday night stay to segment the market of business travellers from leisure travellers? (One can argue this both ways: What facts could we learn to decide the issue?)  [Categories: Airlines, Demand, Market Definition, Price Discrimination] 3:16:28 PM    comment []

"Coke Strays From The Real Thing: Investors Fret That Bottled Water, Other Beverages Don't Quench Their Thirst for Soft-Drink Profit", WSJ October 29, 2002. What is Coke's strategy for expansion into low-end water products such as Danone? [Categories: Market Definition, Price Discrimination] 2:47:39 PM    comment []

"Southwest Sets Standard on Costs", WSJ October 9, 2002. [Categories: Airlines, Costs, Market Definition] 2:16:34 PM    comment []