Answers
1. Explain the biggest challenges Norwegian Air experienced in trying to expand its airline across the globe.
The biggest challenges that the Norwegian Air experienced while trying to expand its airline across the globe were numerous, initially other airlines were very hesitant to allow such a low priced airline to come into business, the prices that the Norwegian Airline was offering were much lower that what other airlines were providing which made them fear their position in the industrial market. Another point that prevented them from expanding and growing further was that their own workers were not open to the idea of having people from Thailand to come and work for the Airlines only because it would cost less, hence it resulted in series of protests and also the company faced a mild form of bankruptcy initially where it couldn’t afford to buy new dream liners. And some of the dream liners that they had developed technical snags in them and were in a dire need of replacement as soon as possible.
2. Identify examples of ethnocentric, polycentric, or geocentric attitudes in this case. Explain why your selected examples illustrate these attitudes.
The EPG model has been applied by the Norwegian airlines so that they can work out their business strategy that would work well at the internal business level. It is made up of three main elements they are
1. Ethnocentrism
2. Polycentrism
3. Geo-centrism
The main purpose of the EPG model is to understand the awareness and the vision of the organization and the company’s strategy is based on these 3 elements so that they can bring benefits to the organization.
1. Ethnocentrism: it is based on ethnicity, the firm wanted to bring in workers from Thailand as cheap labor is easily available there which would help them to cut down costs.
2. Polycentrism: this is based on the political orientation and the marketing tactics, the company made full use of the Euro Crisis that took place so that they...