Walking Peru Competitive Advantages Walking Peru will implement a general differentiation strategy based on the following main criteria: Capacity to serve client's needs at various locations throughout the year. Coverage is crucial to carry out several activities simultaneously and achieve recognition for recreational tourism. Services are initially provided at recognized centers of interest to both foreign and Peruvian tourists. In future, services may be expanded to cover the Manu Reserve and the Sipan Valley. Compatibility with other recreational activities. All disciplines carried out by Walking Peru will be passive sports. These activities will be clearly positioned as not requiring special skills. Learning is an important activity at this point, both for expanded coverage and for integration with other tourism related companies.

Specific competitive advantages
Walking Peru's main advantages are the following:

• Its leadership in recreational tourism in Peru. Minimum competition is found in this market.
• Launching. Hang glider excursions at main tourist attractions in Peru are a new option to enjoy nature and archeological sites.
• Letter of intent with Franz Schilter who will supervise the Airwalk line of business. (See appendix 4).
• Natural Resource Institute⁶ favorable opinion to obtain MITINCI flight permit over Machu Picchu, Huascaran and Paracas in exchange for disseminating information on protected natural and archeological areas. (See appendix 5).
• Agreements with local governments who will grant the corresponding company and flight authorizations in exchange for institutional advertising. (See appendix 6).
• Letter of Intent with travel agencies to promote Airwalk services as part of tour packages sold abroad.
• Business agreements with the Monasterio and Machu Picchu Ruinas Hotels in Cuzco, Hotel Paracas in Ica and Tumi Hotel in Ancash. These agreements with hotels in the cities where Airwalk will start doing business are aimed at cutting on infrastructure costs in exchange for institutional advertising.

Other policy priorities are as follows:

• Professional experience and expertise of pilots hired from recognized training schools.
• Technically safe equipment. Pilots will rely on modem instruments to keep them in permanent contact with take off and landing sites. Modem flight equipment (gliders, harnesses, chairs, etc.) will be continually tested by the flight instructors.
• Constant innovation of services rendered. Filming, photography and souvenirs will be complemented at a later stage with pick-ups, package tours and other.

How to preserve the competitive edge. Costs and resources.
A differentiation strategy adopted from the launching of the Airwalk business line requires increased costs to achieve:

• Company positioning as a reliable and dynamic undertaking
• Exclusive and unique services

Efforts will be directed at maintaining a high standard of quality services, in terms of both human resources (flight instructors and assistants), and excursion equipment. Instructors will stay in Peru for only six months at a time to:

• Maintain a continuously motivated personnel
• Create a data base of personnel who are best adapted to corporate culture
• Sign work contracts with stable wages
• Give more flexibility to operations

An additional consideration is that all services will be supplied near the customer. For instance, customer pick-up transportation will have to be carefully programmed on site when take off and landing sites do not coincide. Likewise, travelers not wishing to walk from/to departure sites will be provided appropriate transportation.