Index IntroductionChallenges of Lucky AirCost-Centered Business StrategyDifferentiation TacticConclusionIntroductionLucky Air is an airline based in Yunnan, China. It is a small airline that is trying to implement growth strategies. The airline industry in China is heavily regulated; therefore, Lucky Air must find creative yet effective ways to gain some sort of competitive advantage. The airline industry in China is growing and there are several small airlines entering the market competing with Lucky Air. E-commerce is one of the strategies that the company considers as a growth strategy. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original EssayLucky Airline ChallengesThe airline industry used to be highly regulated, which often stifles innovation and planning and makes it harder to find effective ways to reduce the company's costs; however, regulations have loosened slightly, inviting more competitors, making the environment a little more difficult for Lucky Air and increasing competitiveness for customers. Lucky Air also has to pay higher fuel prices in Yunnan, and is forced to pay fuel costs upfront, this could leave the company short of working capital during the financial year or could make it harder to pay other creditors, so the airline may be forced to operate a line of credit with expensive overdrafts that could increase costs. Lucky Air pays a 2-15% commission to ticket agents, and 80% of ticket sales are through agents; therefore, it is expensive for Lucky Air to acquire customers. Airlines are not allowed to lease planes directly from manufacturers, so they have to pay a premium to intermediaries to purchase planes, however this is a standardized issue for all airlines that lease planes. Cost-Centered Business Strategy The regulations imposed on the airline industry are beyond Lucky Air's control, so the company only has to work within its boundaries. Lucky Air needs to improve its online presence and move ticket buyers to its online sales platform. Lucky Air can do this by offering promotions or discounts on their tickets, this will save on Lucky Air fees and also increase customer engagement. Consumers are really attracted to cheaper flights; however, the quality of the experience also matters (McMahan, 2019). The online platform should have a blog or comment section that allows customers to share flying experiences. This creates a sense of community among customers, promotes customer engagement and this, in turn, will increase customer loyalty. Promoting an e-commerce strategy is much more difficult than you think and involves several things. It needs a change in business model which is never easy to achieve. Moving your business online isn't as easy as asking customers to visit your website, your IT infrastructure needs to be able to support the traffic, payment gateways need to be up and running at all times and your marketing team needs to work hard to make introducing customers to the online platform is not something that can be done overnight. Differentiation Tactic The differentiating tactic that Lucky Air should offer is convenience. Convenience is the embodiment of several things, and that's what makes it vital. As Lucky Air promotes its online platform, it needs to add more value to its offering. Lucky Air needs an "e-concierge" service that can book accommodation for customers and even make restaurant reservations for.