In order to escape from competition and competitors, firms can differentiate their products and process, especially with a strategy of cost cutting. The low cost model consists in redefining and simplifying existing products in order to reduce the production costs (for instance, by a large standardization of the production process) and ... the prices. The low cost approach should be clearly distinguished from usual practices such as discounts or rebates because the low cost is more than a strategy of low price : it relies on a strong redefinition of products, based on a new approach of consumers needs and exceptations.
The low cost model has strong effects on competition in some sectors such as airlines : through decreasing prices, low cost threatens existing competitors (sometimes in a monopoly position) and forces them to adapt their strategies and renewal their own model.
My recent papers about the low cost model
An interview on airline low cost , published in the newspaper le Dauphiné Libéré, 11 July 2011 --> click HERE
An interview on airline low cost, published on the website Atlantico, 11 July 2011--> click HERE
A paper "Téléphonie mobile : quand une révolution en cache une autre", published in the newspaper La Tribune, 1 july 2011 --> click HERE
A paper "Ce que nous enseigne la révolution du low cost aérien", published in the newspaper La Tribune, 9 May 2011 --> click HERE
A working paper "Le low cost : anatomie et perspectives d'un modèle", published in Prospective & Entreprise, n° 15, March 2011
A working paper "Le low cost : anatomie et perspectives d'un modèle", published in Prospective & Entreprise, n° 15, March 2011
A paper "le low cost aérien n'est pas ce que l'on croît", published in the newspaper La Tribune, 2 March 2011 --> click HERE
A paper "Cinq idées reçues sur le low cost", published in the review Constructif, n° 28, february 2011 --> click HERE
My last book Le low cost published at La Découverte, january 2011
A paper "Aérien : les vrais bénéficiaires de la concurrence low cost", published in the newspaper Les Echos, 24 December 2010 --> click HERE
A paper "Aérien : les vrais bénéficiaires de la concurrence low cost", published in the newspaper Les Echos, 24 December 2010 --> click HERE
A paper "Les vertus cachées du low cost aérien", published in Notes de la Fondapol, november 2010 ---> click HERE To watch the video about this paper ---> click HERE or HERE
An interview "Une concurrence vecteur d'innovation", published in the newspaper Le Parisien, 25 october 2010 --> cliquer HERE
"The low cost model or the return to price competition", published in the review Concurrences, n° 1-2008 ---> Click HERE
A paper (in French) "Le modèle low cost, révélateur de valeur ajoutée", published in June 2010 in the review Espaces n° 282 --> Click HERE
An interview (in French) "Le low cost consacre le retour du taylorisme", published in the review Entreprise & Carrières n° 1006, 15 June 2010 --> Click HERE
A paper (in French) "Air France KLM face au défi du low cost", published in the newspaper La Tribune, 21 May 2010 ---> Click HERE
A paper (in French) "Aérien : les grandes majors confrontées au défi du low cost", published in the newspaper Les Echos, 26 February 2010 --> Click HERE
A paper (in French) "Le low cost, au service du consommateur", published in January 2010 in Economie & Management, n° 134 ---> Click HERE
A paper (in French) "Mais qui a vraiment peur du low cost", published in Concurrences, n° 1-2010 ---> Click HERE
A paper (in French) "Le low cost ou l'économie de la juste valeur", published in the newspaper La Tribune, 9 December 2009 ---> Click HERE
This paper replies to another paper of V. Segond "Le low cost ou l'économie du soupçon", published in La Tribune, 23 Novembre 2009 --> Click HERE
The Beigbeder report on low cost in France
The report "Le low cost, un levier pour le pouvoir d'achat" [2007] ---> Click HERE
A summary of the Beigbeder report, not published [2008] ---> Click HERE
A paper, cosigned with Charles Beigbeder, published in the newspaper Les Echos, 12 Décembre 2007 ---> Click HERE
Some statistics on low cost
The French attitude towards low cost ---> Click HERE
A photo of the report hand-out with Luc Chatel, Minister of tourism and consumption, 13 Décember 2007
Some topics about low cost
- low cost in the car industry
A profound research (in French) "Automobile : la low cost attitude ?", published in L'Observatoire Cetelem [2010] ---> Click HERE
- low cost in the airline industry
A synthesis (in French) "Les transporteurs à bas coûts", published in les Notes thématiques of the French civil aviation authority, n° 13, December 2009 --> Click HERE
Some information (in English) about low cost
Statistics, data :
Eurocontrol statistics [2006] : Low cost carrier market update ---> Click HERE
On competitors reactions to low cost airlines entry :
An unpublished paper of Ito & Lee [2003], Incumbent responses to low cost entry : evidence from the US airline industry, working paper ---> Click HERE
A paper of Alderighi & alii, [2004] The entry of low cost airlines, working paper Click ---> HERE
A paper of S. Morisson [2001], "Actual, adjacent and potential competition : estimating the full effect of Southwest Airlines" Journal of Transport Economics and Policy, vol. 35, pp. 239-256 --> Click HERE
A paper of Goolsbee & Syverson [2006], How do incumbents respond to the threat of entry ? evidence from the major airlines, working paper ---> Click HERE
On delays and punctuality with low cost airlines :
A paper of N. Rupp & T. Sayanak [2008], "Do low cost carriers provide low quality service ?" published in Revista de analisis economico ---> Click HERE
A paper of M. Mazzeo [2003], "Competition and service quality in the US airline industry", Review of Industrial Organization, n° 22, pp. 275-296 ---> Click HERE
On the slots allocation and low cost access to airports :
NERA report [2004], Study to assess the effects of different slot allocation schemes
---> Click HERE
Mott McDonald report [2006] Study on the impact of the introduction of secondary trading at community airports ---> Click HERE
Regulation n° 95/93 about the allocation of slots in the European Union ---> Click HERE
On the Wal Mart effects in the retail sector
A paper of E. Basker [2007] on the Wal Mart impact on competitors pricing --> Click HERE
A study of E. Basker [2005] on the Wal Mart impact on employment ---> Click HERE
A study of D. Matsa [2009] on the Wal Mart impact on the quality of competing supermarkets ---> Click HERE
A synthesis paper of E. Basker [2007] on Wal Mart effects ---> Click HERE
On the entry barriers in drug retail
A paper of C. Schaumans & F. Verboven [2006], Entry and regulation : evidence from health care professions, Working Paper CEPR n° 5482---> Click HERE
3 commentaires:
Anonyme a dit…
- bonjour, Savez vous où je pourrais trouver des donnée sur la part de marché des compagnies low cost dans le transport aérien ? Merci
- 15 novembre 2008 20:22
Anonyme a dit… - Bonjour, Je vous remercie d'avoir mis a notre disposition de telles informations precieuses. Je voudrai vous demander si vous pouvez m'aider a trouver des informations sur le Low cost aerien au Moyen Orient. Je vous remercie d'avance pour votre aide.
- 19 janvier 2009 13:19
Anonyme a dit… - Bonjour, Je vous remercie d'avoir mis a notre disposition de telles informations precieuses. Je voudrai vous demander si vous pouvez m'aider a trouver des informations sur le Low cost aerien au Moyen Orient. Je vous remercie d'avance pour votre aide.
- 19 janvier 2009 13:19
