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This assignment revolves around an examination of a strategic response of leading international carriers to the competitive challenges currently facing the world airline industry.
Three main strategies may being followed including:
- The expansion of global route networks
- Customer/marketing-orientated strategies aimed at improving service quality and
- Securing brand loyalty; and cost control strategies.
Maintaining a distinctive competitive advantage in any of these areas is becoming more difficult as similar strategies are being followed by all leading airlines. A major consolidation of the airline industry, both globally and in Europe, is already underway — a trend which will most likely continue. As a consequence, the sector will become increasingly dominated by a handful of global mega-carriers.
Based on International Strategy and Organization’, discuss which of the three main strategies you believe may be the best for an airline such as American or Delta, and how does national and international business environments influence this strategy formulation?
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