Performance during recent time VietJet is continuing to maintain and consolidate the position of leading airliner in the domestic market. As the report of the firm at the end of 2016, it served 14,050,000 passengers, an increase of 51% over 2015 and maintain a high seat utilization rate of 88.6%. Technical reliability is 99.57%-highest in the Asia-Pacific region. VietJet operates a total of 84,455 flights in 2016, with a total of 156,267 hours flight time. The number of employees at 31/12/2016 is 2,435 people coming from more than 30 countries. Revenue grew 43% compared to revenue of 2015 and reached VND 15,822 billion. 3. LITERATURE REVIEW Cost leadership strategy involves the process through which the company can produce or distribute goods and services at a lower cost than competitors within the industry. Firms pursuing this strategy commonly trade standard products combined with aggressive pricing. It targets a broad customer segment. Besides, cost leadership or "low-cost” strategy put emphasis on organizational efficiency. Attaining cost leadership typically requires aggressive construction of efficient scale facilities and vigorous pursuit of cost reductions through experience, tight cost and overhead and cost minimization in areas like R&D, service, sales force, …show more content…
Cost leaders may also force its suppliers to decrease their prices by providing more flexibility to cope with input cost increases. The factors that lead to a low-cost position usually also provide substantial entry barriers in terms of scale economies or cost advantages. Finally, a low-cost position usually places the firm in a favorable relative to its competitors in the industry. In other words, cost advantages can create value for a firm by reducing the five threats of entry, rivalry, substitutes, suppliers and