At face value you can see why lower prices might be a reasonable response to an airline famous for its lower fares–but it actually reveals a poor mindset about competition. The best way to face your competition is to focus on your category superconsumers–the highest profit, highest passion customers in your category–to figure out a way to grow the pie, not shrink it.
This may seem obvious, but many companies and startups don’t realize their growth strategy is predicated on stealing shares with lower prices or similar products–which often ends up losing money in the end. There are three specific lessons Hawaiian Airlines should have followed–and are critical for all startups to get right:
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