Define the focus and change it

For many years, one of Norway's airlines (SAS), fighting with another Norwegian discount airline (NAS), advertised with, "You do not pay extra for luggage when you travel with us."

This because travelers with the competitor had to pay extra, if they had more than hand luggage.

It is a good example of competitor focused strategy.

Of course everyone knows that you have to pay the costs, but we like to think that we get as much as possible for the money we pay, so subconsciously we conclude that it is okay to pay a little more when you get something extra for free.

Always consider the consequences of your strategy and make sure that there is no reverse side.

Low-cost airlines have a lower price as strategy, but charge extra for anything that gives them extra expenses. The competitor use this business model as an advantage in their advertising.

The negative consequences of the strategy (free luggage) appears when low-cost company say: "With us, you do not pay extra when you only travel with hand luggage."

Then the statement: "You do not pay extra for luggage" is pointless. Now everyone think they are paying for it, having luggage or not.

Someone forgot that the 2'nd order consequences always must be considered. Maybe they did, but didn't do it good enough.

The competitor changed the focus to their own advantage.

sorze4.com