Strategy: how and how much to innovate

Benoît Gailly
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Benoît Gailly: Université Catholique de Louvain (UCL)

Chapter Chapter 3 in Developing Innovative organizations, 2011, pp 43-69 from Palgrave Macmillan

Abstract: Abstract The airline industry was for decades a relatively stable industry, based on national or regional incumbent players. These companies more or less all competed to offer the best connections and the best in-flight experience, in particular to high-margin (less price-sensitive) business customers. Hence most airlines used a similar strategy, based on vertical integration and multiple connections offered through their base airport (the hub). The industry as a whole was actually not profitable most of the time. National regulations, state support to national champions, strong unions and a lock on the best landing slots (in particular, for the most profitable transatlantic flights) all reinforced the status quo.

Keywords: Business Model; Switching Cost; Business Strategy; Dynamic Capability; Harvard Business Review (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-29528-5_3

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DOI: 10.1057/9780230295285_3

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