An analytical model for the assessment of airline expansion strategies

Purpose: The purpose of this article is to develop an analytical model to assess airline expansion strategies by combining generic business strategy models with airline business models. Design/methodology: A number of airline business models are examined, as are Porter’s (1983) industry five forces...

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Detalhes bibliográficos
Autor: Emboaba Moreira, Mauricio
Formato: artículo
Fecha de publicación:2014
País:España
Recursos:Universitat Politècnica de Catalunya (UPC)
Repositorio:UPCommons. Portal del coneixement obert de la UPC
Idioma:inglés
OAI Identifier:oai:upcommons.upc.edu:2099/14467
Acesso em linha:https://hdl.handle.net/2099/14467
Access Level:acceso abierto
Palavra-chave:Airlines--Management
Airlines--Planning
Airline expansion strategies
Airline business models
Línies aèries -- Planificació
Línies aèries -- Direcció i administració
Àrees temàtiques de la UPC::Enginyeria civil::Infraestructures i modelització dels transports::Infraestructures i transport aeri
Descrição
Resumo:Purpose: The purpose of this article is to develop an analytical model to assess airline expansion strategies by combining generic business strategy models with airline business models. Design/methodology: A number of airline business models are examined, as are Porter’s (1983) industry five forces that drive competition, complemented by Nalebuff and Brandenburger’s (1996) sixth force, and the basic elements of the general environment in which the expansion process takes place. A system of points and weights is developed to create a score among the 904,736 possible combinations considered. The model’s outputs are generic expansion strategies with quantitative assessments for each specific combination of elements inputted. Originality/value: The analytical model developed is original because it combines for the first time and explicitly elements of the general environment, industry environment, airline business models and the generic expansion strategy types. Besides it creates a system of scores that may be used to drive the decision process toward the choice of a specific strategic expansion path. Research implications: The analytical model may be adapted to other industries apart from the airline industry by substituting the element “airline business model” by other industries corresponding elements related to the different specific business models.