The four year old carrier plans to attract customers with tempting fares. An Air Canada flight booked Friday afternoon for Toronto-Windsor travel in mid-May cost $225 one-way, before taxes and various fees, compared with Porter’s introductory rate of $89 in the lowest fare category. On the Toronto-Sault Ste. Marie route, Air Canada charged $298 one-way for mid-May travel, while Porter is hoping to lure customers with $99 tickets.
Those prices and route selections take direct aim at Air Canada, which is able to compete, but not be predatory in this market.
In the same way that Porter is aiming to grow in specific niche markets, all companies must be ready for challengers who attack this way. Is our company ready for a new entrant? Even when barriers to entry are high, there is always a risk that one day a new competitor will try to acquire market share. It is very important to identify and be ready in advance to such a risk.
A strong competitor is prepared in advance to:
- Continually raise barriers to entry
- React quickly when a new entrant comes to play