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Strategic responses to competitive pressures: European air transport
Author(s) -
Kangis Peter,
O'Reilly Dolores
Publication year - 1998
Publication title -
strategic change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.527
H-Index - 16
eISSN - 1099-1697
pISSN - 1086-1718
DOI - 10.1002/(sici)1099-1697(199805)7:3<167::aid-jsc361>3.0.co;2-7
Subject(s) - business , air transport , industrial organization , aeronautics , engineering
The European airline industry has been operating within a protected environment until steps were taken by the European Union to deregulate the market. The aim of this paper is to identify the strategies adopted in times of strategic change, when competition was allowed for the first time in the history of this industry. On the basis of an empirical investigation it was found that: • deregulation has resulted in a larger number of airlines entering the market. • the first strategy considered and adopted by airlines was that of high volume/low price. • firms adopting this strategy, particularly new entrants, fared better on a number of performance criteria. • the evidence did not support the expectation that a low number of suppliers or buyers would have a significant influence performance through concentration of power. © 1998 John Wiley & Sons, Ltd.