Sky High Strategies - From: Corporate Strategy, Richard Lynch Page 23

Question 1Why is the development of corporate strategy important for the major European oxygenatelines?The markets of the world be in a state of flux. In order to understand and change the stratagem one essential understand the market conditions and some of the history of the perseverance. Professor kill states that of the two approaches to strategy both rely on cardinal core areas namely.

?Analysis of the environment?Analysis of resources?Identification of vision, military mission and objectivesIn analysing the environment of the European airline diligence the history of the industry should be considered1.In the 1950?s the jet engine was introduced making extensive distance travel possible.

2.In the 1960?s larger high depicted object aircraft was introduced making travel more comfortable.

3.In the 1970?s the technology was meliorate and 300 seater planes introduced. Also there was an oil crisis which impacted negatively on the industry as a whole. This oil crisis caused the industry to decoct expansion plans, the airline industry is very impact by the global economic mood. Deregulation of the industry caused airlines to cut profits in order to stay compeditive.

4.At the start of the 1990?s economic recession caused more that 1000 aircraft to be park in the deserts of the US.

5.In 2001 on September 11 a terrorist attack using 4 hijacked aircraft caused consumer confidence in air travel safety to plummet.



This lead to the bankruptcy of some airlines.

The new(prenominal) factors in considering development strategy of an airline is what market receding the airline feels comfortable operating in. These areas are represented under in the following table.

Low cost flights This market has the passengers on low budget, packed into the smallest space, no frills or meals, booking are not done. This means that the airline relies on volume of fairs rather than quality of travel experience.

Mixed low cost and...

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