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Airline Industry Value Chain
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Competitive pressures are increasing within and between different strategically oriented groups of airlines. This paper focuses on the level of efficiency improvements gained by using e-marketplaces in the procurement process. Findings from a survey among 88 international airlines reveal that the use of business-to-business e-marketplaces plays dif...
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Citations
... The interoutsourcing differs from M&A in that the partners choose to cooperate only so long as it is mutually beneficial to each member. Wagner et al. (2005) found that airlines involved in alliances showed higher joint procurement activities than airlines that were not involved in strategic alliances. Lin (2008a,b) examined the role of code-sharing in market entry deterrence and its resulting impact on passenger demand and airfares. ...
As “open skies” agreements became more common among different countries and thus began to open up international routes to further competition, the global airline industry has undergone accelerated structural changes for the last two decades. These changes include the consolidation and expansion of airline strategic alliances throughout different regions of the world. Though airline strategic alliances are generally perceived to be a major driver for enhancing the operating efficiency and the subsequent competitiveness of participating member airlines, the concrete evidence supporting such a perception is still lacking in the literature. This paper is one of few attempts to evaluate the comparative efficiency of the strategic alliances among global airlines and then assess the managerial impact of airline alliances on the airline’s comparative performances.
... Deregulation prompted intense fare competition and, accompanied by industry expansion, it spurred airlines to seek improvements in efficiency through the development of the hub-and-spoke route system and creating the notion of the 'full service network carrier' (FSNC). In the latter half of the 1980s, the heightened competitive conditions of a post-deregulation industry brought about the second wave of change; many airlines folded, consolidated, merged, or were acquired through leveraged buyouts (Rubin and Joy, 2005;Wagner et al., 2005). Consumers are currently experiencing the third wave of change, which some believe to be the most transformative, as it involves changes to long-term aspects of the airline industry: competitive structure, ticket purchasing, route patterns and the emergence of low-cost airports (de Neufville, 2008). ...
The low-cost airlines' adoption of Web technologies to facilitate direct sales has accelerated their market penetration. However, some low-cost carriers are increasingly using Websites to create distance between themselves and their consumers in specific areas of their operations, while simultaneously developing excellence in sales transaction completion via self-service. The ‘opaque’ practices many low-cost carriers employ appear to be intentional design features and are contrary to the ethos of designing a ‘good system’ to facilitate the full spectrum of customer service. As a result, the low-cost sector has come under increased scrutiny for engaging in unfair practices and violating consumer protection law.
... In the later half of the 1980s, the heightened competitive conditions of a post-deregulation industry brought about the second wave of change; many airlines folded, merged, or were acquired through leveraged buyouts (Wagner & Zubey 2005). ...
Modest attention has been given to the subtle ethical issues of 'best practice' on the Internet, such as the exploitation of Web technologies to inhibit or avoid customer service. Increasingly, some firms are using Websites to create distance between themselves and their consumers in specific areas of their operations, while simultaneously developing excellence in sales transaction completion via selfservice. This paper examines findings from a study on the self-service Websites of low-cost airline carriers (LCCs) in Ireland. The LCCs' adoption of technology has meant more efficient flight options and enhanced price transparency within the industry. Yet despite advances, a number of LCCs use their information systems in a conflicting manner when managing customer interactions. The 'opaque' Web practices many LCCs employ appear to be intentional in design and are contrary to the ethos of designing a 'good system'. Accordingly, the LCC sector has come under greater scrutiny for engaging in 'unfair practices' and violating consumer protection law. The paper notes the teaching of information systems development (ISD) and marketing assumes ethicality in their practice. While these business disciplines are central to the success of self-service Websites, there is a gap between the disciplines' theoretical ideals and their practice.
The global airline industry has currently experienced major changes toward cooperation, where competitive advantages can be built via alliance memberships. The pressure of forming an appropriate alliance strategy is increasing because the airline industry has currently experienced uppermost shifts: intensive rivalry, rapid growth of technological explosion, environmental and terrorist events, etc. Despite positive pre-alliance motivations as recognized in most cases, after certain alliances strategies are formed and implemented, the post-alliance performance is not always satisfactory. Thus, the question of: how do pre-alliance motives and strategies affect post-alliance performance in the airline industry seems under explored. This study therefore looks into the triple relationships among: motives, strategy and performance. This study employs a systematic literature review method for this research topic. The review explores the main factors consisting of each triple dimension and then the linkages between them. Subsequently, it identifies theoretical gaps which indicate areas of further investigations.
Information sharing is one of the most important topics in supply chain management, but it is not an easy task due to the numerous challenges. This study aims to investigate how uncertainty can be reduced through the proper sharing of information, and it also endeavours to discover what factors play a key role in its success. The printed circuit board industry in Taiwan, which was chosen for this study, is a type of divergent differentiation supply chain and operates in a highly uncertain environment. The results show that trust between partners in the chain can increase information sharing while uncertainty is considered the main factor impeding it. Information sharing on such as ‘demand forecast information’ could improve the performance of order fulfilment process. Information sharing with vendor-managed inventory mechanisms could reduce supply chain uncertainty and bullwhip effects with the result that inter-organisational coordination could be strengthened.
Handelsplattformen im Internet weisen seit Jahren eine zunehmende Bedeutung auf. Sie sind eine der vielen Ausprägungen, die mit der Entstehung und Verbreitung des Internet die Organisation und Nutzung von Märkten stark beeinflusst haben und sie sind Teil einer interaktiven Wertschöpfung. Nicht nur, dass dadurch neue Marktsegmente entstanden wären, auch die realen Märkte haben sich durch die bloße Existenz von Handelsplattformen verändert. Vertriebs-, Marketing- und Kommunikationsstrategien von Unternehmen können nicht mehr ohne die Berücksichtigung des virtuellen Handels konzipiert werden. Damit sind nicht nur organisatorische und prozessuale, sondern auch technische Herausforderungen verbunden. Handelsplattformen sind nicht nur ein neuer Modus der Marktorganisation, sondern auch eine innovative Form der Kooperation von Unternehmen, deren Potenziale bei weitem noch nicht ausgeschöpft sind. Ihre Wirkungen bleiben nicht auf die einzelwirtschaftliche Ebene beschränkt, sondern es sind auch weitreichende gesamtwirtschaftliche Effekte mit diesen Entwicklungen verbunden. Zu nennen sind eine Veränderung der Branchenstruktur, Auswirkungen auf die gesamtwirtschaftliche Arbeitsteilung sowie die Prüfung eines besonderen Regulierungsbedarfs. Dieses IfG-Arbeitspapier von Sabine Rach und Michael Tschöpel ist aus dem IfG-Projektstudium Interaktive Wertschöpfung im Internet des VWL-Masterstudiums hervorgegangen. Es handelt sich um eine Literaturanalyse, in der der Forschungsstand zu diesem Thema aufgearbeitet wird. Dabei dienen sowohl strukturelle als auch inhaltliche Kriterien der Strukturierung der bisher erschienen Studien. Die Erkenntnisse sind neu und höchst interessant. Das Arbeitspapier ist in den IfG-Forschungscluster II: Unternehmenskooperationen einzuordnen. Kom-mentare und Anregungen sind herzlich Willkommen. --
Increasingly, two key trends – value- and cost-conscious customers, and globalization of markets and supply sources – are shifting the competitive focus from the competitive advantage of firms to competitive advantages of entire supply chains. At the same time, the possibilities for flexibility and coordination inherent in modern information and communication technologies are making it possible to design and follow a much greater variety of organization and governance strategies for delivering customer value. Contributes primarily to the development of general principles for ICT-enabled redesign of supply chains. Rather than examine the individual impact and design implications of each new ICT innovation, proposes principles of abstraction that can be used to frame supply-chain redesign options and decisions. Concludes with how these principles lead to flexibility in the design of various supply chain options, thereby providing cost and value advantages for the supply chain.
Purpose
– Due to the continued high failure rate of logistics alliances, the purpose of this paper is to propose incorporating the widely neglected dynamic capabilities approach into the explanation of logistics alliance performance.
Design/methodology/approach
– The authors identify specific characteristics of logistics alliances that are used to argumentatively develop a framework of logistics alliance management capabilities.
Findings
– We propose an initial framework of logistics alliance management capabilities, based on the dynamic capabilities approach of strategic management, with the aim of improving logistics alliance success.
Research limitations/implications
– The presented framework offers a basis for a wider range of empirical studies. Qualitative researchers are encouraged to further specify and better understand the sub-processes that underlie logistics alliance management capabilities in different alliance settings. Quantitative studies could help to reliably assess the differences and performance implications of these capabilities.
Practical implications
– The authors ' conceptualization supports managers in their relevant strategic and organizational attempts to enhance logistics alliance success.
Originality/value
– This paper contributes to the logistics literature by making a more general yet established construct accessible to logistics scholars and practitioners. The roots of the authors ' logistics alliance management capabilities construct in dynamic capabilities provide a framework that is new and potentially more comprehensive than the collection of somewhat isolated alliance success factors that have hitherto been proposed in the logistics literature.
This paper examines the sustainability of e-cluster applications used within the context of e-procurement in order to analyse business models and identify factors important for viability of ‘digital proximity’ e-marketplaces. Survey-based functionality value analysis was used to examine development and operational costs, while workshops identified preferences of potential e-cluster members. The study identified two business models – subscription and pay-per-use. Analysis indicated that the pay-per-use model had more variable cashflow but had the potential for higher cost benefit particularly when aggregated procurement is adopted. The findings suggest that e-cluster management organisations have to be strategic in their deployment. The findings also suggested that e-cluster members preferred to pay for e-cluster sustainability through subscriptions rather than through advertising. In addition, the study indicated a lack of consensus with regards to the value attached to various functionalities of e-clusters and the sourcing of initial funding for the development of the e-cluster application.
