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GOL Linhas Aéreas Inteligentes: Developing a Brazilian Airline Model

Published 21 Jan 2021
Reference 6563
Topic Strategy
Region South America
Summary

The case describes the creation and evolution of Brazil’s first low-cost airline – GOL. From the outset GOL was driven by innovation and within a few years of operating had become the country’s leading airline. Although initially a low-cost carrier, over the years it became increasingly customer-centric, striving to improve the customer experience by removing the pain points of air travel. As competition from new low-cost entrants intensified, could GOL maintain its lead in the domestic market? Was it destined to become the Uber of the airways, in a segment between low-cost and full-service offerings, relying on innovation to keep costs down? The case discusses GOL’s options for growth, specifically its potential for international expansion.

Teaching objectives

To discuss issues of strategic positioning in a competitive market, in particular whether strategies of low-cost and differentiation can be combined within a single business model or require different units or offers. To understand how digital technology and transformation can allow a company to propose a low-cost offering yet at the same time remove customer pain points. To explore the options for international expansion.

Keywords
  • Airline Industry
  • digitalisation
  • Brazil
  • low-cost airlines
  • transport
  • hybrid business model
  • digital transformation
  • Azul
  • LATAM
  • emerging markets
  • GOL
  • Q12021
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