Leveraging Contingencies
Leveraging Contingencies

Leveraging Contingencies

Many a times when we hit a roadblock, we just go into a shell. The moment we get into the shell, we start thinking about possible solutions and many a times, all the solutions we think about may not make sense.

The third principal of effectuation helps focus on turning the unexpected into our favour.

Let me give you an example, when Air Deccan (India) started their operations, many people were bullish. All airlines which were existing till then (Air India, Kingfisher, Jet Airways etc.) were all full service airlines and Air Deccan was the only low cost carrier and it was very different from the other airlines. Food was not free, few rows of seats were not free. Additional luggage was charged etc. This is the unexpected ways to make money. Air Deccan succeeded and also expanded rapidly.

Today, Indigo is the king of low cost carriers in India. It came to such an extent that the Government had to set many rules to ensure people also benefit from the business. Indigo found all the ways to create business. Even wanting to board first is charged (which no one thought about earlier). Keeping aside the softer aspects, just look at the various ways Indigo makes money apart from ticket sales.

Keep your eyes open, you don’t know where your can generate more revenue from.

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