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The story of Flybaboo, a niche airline start-up in a crowded market, provides students with the opportunity to examine topics such as market entry, competitive strategy, product differentiation and positioning, branding, and entrepreneurship. Flybaboo is a fascinating example of a new entrant in a mature industry undergoing radical change, where the usual challenges facing entrepreneurial activities are compounded by a complex regulatory environment and potential competitive threats, from both an established (but declining) incumbent, and rival start-ups. The founder of the company cleverly combined fairly well-established business practices into a new customer value proposition with high appeal to a service-minded client niche. In other words, the case supports the concept that a novel value proposition can be created without unique components, with the perceived value coming mostly from a unique combination of non-novel components. The case serves as an ideal base for discussing issues such as: (1) conducting an industry analysis in a rapidly changing environment; (2) understanding the elements of a customer value proposition; and (3) establishing and maintaining a competitive advantage. A video ''IMD-3-1526-V'' is available to accompany this case.