B U S I N E S S T R A N S F O R M A T I O N
Embracing digital technologies to reverse Flybe's year-on-year financial decline
Flybe has shown declining negative growth over the last 7 years. This proposal critically evaluated cutting-edge thinking related to:
Business Strategy, Digital Business Transformation and New Business Models
This research was then applied to develop innovative solutions that could help turnaround Flybe's fortunes, suggesting digital strategies that could impact its stakeholders for the better.
Where are Flybe at?
According to their 2016 Annual Report, Flybe had undertaken their own internal restructuring in the previous 3 years to address the financial performance of the airline. The turnaround was a major reinvention of Flybe and included a capital raise in 2014, a brand relaunch, addressing legacy fleet issues, building a new management team, and establishing a strong cost culture to drive efficient unit cost reductions, but to no avail.
Where can Flybe go?
A strategy to enhance customer satisfaction through a new digital offering from ‘bolt-on’ to an immersive culture. As part of a new ‘make or break’ strategy, Flybe could strive to become a digitally mature company, both internally and externally, and in doing so appeal to a wider demographic than simply business travellers through innovating the customer experience and thereby enhancing internal productivity and lowering costs. Flybe can be an ‘experience’, not just a mode of transport.
How will Flybe get there?
A strategic alliance between Flybe and AirBnB that would allow Flybe to embark on a dual transformation approach to their business to turn around its fortunes by
Allowing Flybe to partner with a prestige brand at the forefront of digital travel innovation, giving Flybe the opportunity to grow into a digitally mature business by creating a ‘brain trust’ through shared expertise.
Solving the excess capacity problem by co-branding unique flights and accommodation packages that appeal to a more digitally savvy Millennial traveller, eager to explore off the beaten track places, staying in unusual locations that major airlines don’t fly to, turning Flybe’s regional capabilities to their advantage.