Reference no: EM133086876

PT Citilink Indonesia, which is a subsidiary of PT Garuda Indonesia, is prepared to compete with other airlines in the low-cost carrier class. The market share of low-cost airlines in Indonesia is indeed quite potential in line with the increasing number of middle class people who are starting to look at air transportation as an option for traveling. To be able to reduce costs and compete with other airlines, PT Citilink Indonesia applies the following strategy: no free services (for services such as insurance, ticket purchases, seat selection, and baggage facilities Citilink charges additional fees that vary per passenger); network or short-haul flight routes (Citilink chooses short-haul flight routes that have a flight duration of no more than 3 hours in order to save costs); standard facilities (one strategy to save flight operational costs is a simple facility); simple operational system (Citilink plans to use propeller planes in running its business, this is done because Citilink only serves short-haul flight routes); distribution savings and promotional strategies (the promotion is done by selling cheap tickets that can attract the attention of prospective passengers, Citilink also cooperates with banks in providing ticket services so that Citilink does not need to pay distribution costs for ticket sales)

Based on the summary of the case, do you think:

1. A. Explain the definition of vision and mission!

B. What is the company's vision and mission in this case?

2. A. Briefly explain the definition of TOWS matrix!

B. What are the company's strengths and weaknesses when analyzed by using the TOWS matrix?

3. A. Explain what is meant by a growth strategy through product development!

B. What is the company's growth strategy through product development? Explain!