Abstract

This case is about low-cost carrier (LCC) Norwegian Air Shuttle ASA’s (NAS) endeavor to make a successful foray into low-cost long haul services. The case starts out by providing a brief look into the history of NAS, which was one of the most successful LCCs in Europe. Later, the case delves into the factors based on which NAS believed it could make a success of its low-cost long haul services. Industry observers were divided on the possibility of NAS replicating various aspects of low-cost short haul in long haul. A glimpse is provided into the challenges being faced by NAS – both internal and external. In the light of the challenges, can NAS make a success of low-cost long haul services?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand issues and challenges related to designing a disruptive business model and competitive strategy.
• Analyze issues and challenges associated with adopting a low-cost strategy for long haul flights.
• Examine the challenges faced by a market disruptor.
• Explore ways in which NAS can overcome the challenges faced by it in international markets.

Keywords

M-KOPA; PAY-AS-YOU-GO (PAYG) model; M-PESA; Safaricom; Single Point Partners; Eseye Limited; d.light energy private limited; Machine to Machine (M2M) Technology; M-KOPAnet