Table of ContentsIntroductionLucky Air ChallengesCost-Centric Business StrategyDifferentiation TacticConclusionIntroductionLucky Air is an airline based in Yunnan, China. This is a small airline looking to implement growth strategies. The airline industry in China is heavily regulated; therefore, Lucky Air must find creative, yet effective, ways to gain some sort of competitive advantage. The airline industry in China is growing and several small airlines are entering the market and competing with Lucky Air. E-commerce is one of the strategies that the company considers as a growth strategy. Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayLucky Air ChallengesThe airline industry was highly regulated, which often stifled innovation and planning and made it more difficult to search for effective ways to reduce business costs; however, regulations eased slightly, which invited more competitors, making the environment a little more challenging for Lucky Air and increasing competitiveness for customers. Lucky Air also has to pay higher fuel prices in Yunnan, and they are forced to pay fuel costs upfront, which can leave the company short of working capital during the fiscal year or make more difficult to pay other creditors, so the airline may be forced to open a line of credit with expensive overdrafts, which can increase costs. Lucky Air pays a 2-15% commission to ticket agents and 80% of their ticket sales go through agents; therefore, it is costly for Lucky Air to acquire customers. Airlines are not allowed to lease planes directly from manufacturers, so they must pay a premium to middlemen to acquire planes, but this is a standard issue for all airlines leasing planes. Cost-centric business strategy The regulations imposed on the airline industry are beyond Lucky Air's control, so the company simply has to work within its borders. Lucky Air needs to improve its online presence and move its ticket buyers to its online sales platform. Lucky Air can do this by offering promotions or discounts on its tickets, which will save Lucky Air's commission fees and also increase customer engagement. Consumers are really attracted to cheaper flights; however, the quality of the experience also matters (McMahan, 2019). The online platform should have a blog or comments section for customers to share their flight experiences. This creates a sense of community among customers, promotes customer engagement, which, in turn, will increase customer loyalty. Promoting an e-commerce strategy is much more difficult than you think and involves several elements. This requires a change in business model, which is never easy to achieve. Moving a business online is not as simple as asking customers to visit your website, IT infrastructure must be able to support the traffic, payment gateways must work at all times and marketing must work hard to inform customers. on the online platform, this cannot be done overnight.Differentiation TacticThe differentiation tactic that Lucky Air should offer is the.