People connect with the internet and the Wi-Fi services are increasing with each passing day. Staying away from the internet even for an hour is touted as horrifying and a troublesome experience. Due to this scenario of the society and the dedication of the people towards the internet has resulted in many changes in the IT technologies. The facility of Wi-Fi is available in bus, car, train, ships, and many other remote locations. But the airplanes were the only place where it was forbidden, but not for long, as with the new development in the IT industry and the emerging needs of the people to have easy access to the internet has forced the airline operators to provide the Wi-Fi services in the airplanes. There are some organizations who identified this needs a decade ago and thus they have utilized the new technology to facilitate the visitors with in-flight internet services. Thus, to adapt it as a business idea in the current circumstances is a very wise and fruitful decision. There is only a handful of organizations that are providing this service in the airplanes successfully. So, for a new startup, the approach of utilizing this innovative idea to conduct business is a very effective approach, which also requires a large amount of research and an adequate planning and analysis of the complete business plan. One organization that has been taken into consideration while understanding this business idea in detail and in-depth is the Gogo, which provides internet services in the major flights of the United States of America, covering over 80% of the market. The financial costs that will be required for this business plan is huge, especially for the startup, the purchasing of the latest technologies, installation, hardware, software, marketing, and many other expenses. According to this the amount required for this plan will be around six billion, which will be needed for all these processes and more. Thus, the plan requires big and many investors. But the biggest issue with the plan and the investors is that there is a huge risk, as the service standard which the customers wants is mostly not up to standards, a problem which has been reported in the Gogo airlines, and due to this reason the investors part away from the organization, so for maintaining the investors, the plan has should have the main focus on providing high standards service.
In the last decade, the telecommunication technologies and the Wi-Fi have evolved massively. The main reason behind this success is the advancement in the telecommunication industry with the invention of smartphones (Andrianova, 2017). In the present times, majorly every person possesses a smartphone, also the reduction in the prices and the advancement in the technology of the gadgets like tablets, laptops, and many others helped in further development in the telecommunication industry and also in the IT technologies. The people of the current generation cannot imagine a day with no internet services and the involvement on social media has contributed to intensifying this situation. So, according to the circumstances that have been mentioned above the business idea of becoming an internet provider on the airplane is very fruitful according to this situational analysis (Clarke, 2016).
For a business idea analysis, the market on the aspects of possible gaps and opportunities is very crucial for all business plans. Thus, the business idea of Wi-Fi services on airplanes has to undergo a gap analysis (Di Corato, 2013). Gap analysis is a very effective strategic tool that is utilized by organizations to test a plan, idea, and strategy, to foresee the organization’s approach to performance and potential. In simpler words, it is important for a business idea to be analyzed in a way that clarifies the assumptions and displays the true potential of the idea, so the organization can proceed with it. And if a gap is analyzed in the idea, then appropriate strategies are implemented to fill this gap. The business plan Wi-Fi services on the airplane belong to the category of business to consumer, and if the market demand is higher than the supply then this idea will be very beneficial in the making profits (Ilyina-Sidorova, 2018).
There are billions of people around the globe who want internet services on the airplanes and the suppliers of this service are very few, especially in the Asian countries. The organization Gogo is the only organization that has received huge prominence and success in this field (Mohammed Peer, 2012). Thus, in the context of the relationship between the demand and supply, the idea is a boon and should be worked on immediately. But there are some other factors too that have to be analyzed. According to the issues that are very common and will definitely erupt in this business plan is that the technology and the installation charges are very high which have reduced the profit margin with a large scale, providing the service providers with very less profit. The idea of internet in-flight is unique which is its positive trait, but the main issue is that the organization will be needing profits to further develop and grow in the market, but with low profits, this will be a difficult task as it has to expand too, which requires a huge amount of investment (Mortazavi, 2017). The latest technology that will be utilized for the business idea is very expensive. The other issue which the business idea has is that it has to work according to the requirement of the airline companies and the companies that manufactures airplanes. So basically, the idea has to be implemented according to the direction that is proposed by these two industries. Now, this will restrict the business idea as it will be governed by the airlines and the companies that produce airlines. There is also a huge risk factor due to the uncertain changes that might be asked by the companies in the business plan. These two gaps that have been identified are big hurdles in the development and growth of the business plan, and thus there are certain strategies that have to be implemented to control and curb these issues (Muda & Mohd Suradi, 2012).
Apart from these issues, the entire business plan according to the market analysis has shown a lot of potentials, especially with the development of smartphones and social media. So, before the implementation of a plan, it is very important to analyze the market opportunities.
References
Andrianova, Y. (2017). Wi-Fi: Trends and Projects. Lastmile, 3(64), 34-39.
Clarke, R. (2016). Are Popular Wireless Services Like Wi-Fi and GPS Becoming the Pirate Radio of the 21st Century? SSRN Electronic Journal, 1(1), 5-20.
Di Corato, G. (2013). The Internet Service Provider Liability in Online Trademarks Infringement. SSRN Electronic Journal, 1(1), 15-30.
Ilyina-Sidorova, I. (2018). Troubleshooting in Wi-Fi networks. Lastmile, 2(6), 40-51.
Mohammed Peer. (2012). A gap analysis of service expectations and perceptions in private general practice. African Journal of Business Management, 6(1), 16-40.
Mortazavi, S. (2017). The Safety Issues of Onboard Wi-Fi: Possible Interactions of Oxidative Stress-Causing High Altitude, Cosmic Radiation, and Wi-Fi Radiation. Reactive Oxygen Species, 1(1), 10-25.
Muda, N., & Mohd Suradi, N. (2012). Factors Affecting Customer Satisfaction of the Wi–Fi Services. JournalTechnology, 60(1), 35-78.
Simón-Moya, V., & Revuelto-Taboada, L. (2016). Revising the predictive capability of business plan quality for new firm survival using qualitative comparative analysis. Journal of Business Research, 69(4), 1351-1356.
Tsai, W., Hsu, W., & Chou, W. (2011). A gap analysis model for improving airport service quality. Total Quality Management & Business Excellence, 22(10), 1025-1040.
Usländer, T., & Batz, T. (2018). Agile Service Engineering in the Industrial Internet of Things. Future Internet, 10(10), 100.
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