Tutorial Paper Two
Gogo (formerly known as Aircell), is an innovation company, becoming leaders in providing inflight connectivity. The company began in 1991, when they began creating telephone systems for aircrafts, they progressed from this and in 2006 began creating a broadband network for aircraft. In 2008, they launched this new system into commercial flights and since then they have been offering this service for various American airlines including US Airways, Virgin America and American Airlines (Gogo 2013). The purpose of this paper is to discuss the recent experience of using Gogo Wi-Fi on an American Airlines flight, and investigate the strategy of Gogo, with reference to the innovation dilemmas when creating this new service.
The experience occurred on an American Airlines flight from San Francisco to Los Angeles, although the technology had been available for a few years, this was the first time the consumer had experienced Wi-Fi whilst flying. Although the consumer had no need for the Internet on their flight and only purchase it to update their Facebook status, they recognised the benefits of having the internet on long haul flights, this included people being able to check emails and stay in touch with people and it also provides people with the ability to download entertainment from online sources and no longer be limited to the selection provided by the airline.
Due to the nature of the Airline industry, at the core level it can be viewed as a generic offering across the industry. This resulting in airlines often creating a differentiation strategy, in order to gain a competitive advantage as they seek to increase the value of the product/service on offer to the consumer (Hooley et al, 2012). The Gogo Company acknowledged that their innovation could provide a service to Airlines that will enable them to differentiate themselves. This can be identified on the Gogo website, as it states ‘By differentiating your airline and providing a...
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