Florida Air Case Study Jin Oh

Qualitative Analysis Problem: having trouble raising fund, willing to change the exec member, getting a smaller market share due to major airlines’ plan to service for some of Florida Air’s specialty areas Customer Value Proposition Technology and Operation Management Go-to-Market Plan - Commuting to different parts of Florida was too difficult just with the carpool service, so rather created airplane service - The MVP could be actually serving potential customers with the borrowed airplane. -> However, Florida Air was not be able to do any test runs because they didn’t have the airplane supply in the beginning. -> They did a hands-on market research once to the college students to determine the price, yet it is obvious that this is not a good representation of the target market. - This service will be promoted to business travelers, pleasure travelers, and the travel trade (travel agents and corporate travel managers) - > Currently no certain go-to-market plan for the Florida Air except for trying out business with the airplane - Did get an airplane supply from the Fairchild Aircraft Incorporated - >More details necessary on how the Florida Air will grab customers’ attention, how customers will reserve the airplane ticket, what is the business model, instead of the business plan - > Raising fund should have been difficult because they did not reach out to the potential customer base (people who will use this service) to ask for investment - > Really got stuck in creating a solid financial statement, even if they did not raise much money 2

Quantitative Analysis Written as “competitive pricing” compared to their commuting alternatives, yet intentional removing of the US regional airline industry, which could be a good background for setting the initial price along with the price range that the potential customers expect Current) $1.5 million raised (45% equity), New management(5%), Karen Ellison(5%) -> Founders have total of 45% equity -> good balance yet think 2 options give more equity to the investors, possibly gaining more funds by giving more equity, the founders might get influenced by the shareholders, possibly causing slow progress (For me personally) Investing Florida Air at the initial stage is difficult because though the cash flow statement seems to project positive cash flow over a period of time, the statement has not been calculated based from a good representation of potential customer base 3

Recommendation Be specific about the target market (not just business travelers…) Restart the target market analysis starting from the West Palm Beach Airport customers, which is about five and a half million passengers Restart the target market analysis on people who used the same route that Dan used in the past to do his real estate job & try to raise fund from this target group Ask for more funds and supplies from other institutions or venture capitalist firms after having a solid credibility, meaning almost to an extent that potential customers helping financially to launch this business Initiate advertising of the Florida Air through words of mouth, newspapers (currently just a plan, no sign of hands-on advertisement) Fire the partner, if they find that he is not necessary to do conduct any hands-on research (even if the airplane industry really thinks of past experience as importance) Map out how Florida Air can compete against the major airplane firm, such as by providing a better alert service, extended customer care service from home to the workplace, fast customer feedback -> In other words, find a nice market really depends on how fast the other firm can chase what Florida Air currently has (if it takes a while, just focus on the main service) 4