Digital Transformation Strategy in the Airline Industry Under Oligopoly

Digital Transformation Strategy in the Airline Industry Under Oligopoly PDF Author: Yao-Yu Tsai
Publisher:
ISBN:
Category :
Languages : en
Pages : 202

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Book Description
This thesis seeks to analysis how airlines can better conceive and implement digital transformation strategy to ensure competitive advantages as a response to the dawn of digital era. This thesis particularly focuses on the competitive dynamics of targeted airlines in a specific oligopolistic market structure, and analyzes behaviors and patterns between competitors when applying digital transformation initiatives. The actions, reactions, results, and meanings behind the interactions are examined step by step through a backward perspective. The literature review presents relevant definitions of digital transformation, oligopolistic competition and competitive dynamics. The analysis was further conducted through different stages, specifically competitor mapping, performance comparison, and awareness-motivation-capability model (AMC). The study has conducted the competitor mapping measurement twice at two different time, and observed the change of competitor viewpoints. 3 substantial digital implementations taken by China Airlines and EVA Air from 2015 to 2019 were selected and analyzed using AMC. Research findings and implications suggests that digital transformation strategy, viewed as the consistent use of technology in transforming customer experience, is positively correlated with gaining competitive advantage, thus elevating the overall performance of the company. Above all, research results show that awareness is less important in this oligopolistic market structure, but motivation, and capability are critical, and even predominant. Awareness tends not to be an issue in the airline industry as market incumbents are well-defined, and even familiar with one another. Concerning motivation, direct customer interaction is a decisive motivation for airlines to take part in digital transformation. Regarding capability, airlines are mostly copy and pasting identical or similar resource, products, or systems in the digital trend, indicating that the first-mover advantage in the Stackelberg model prevails in a competitive market with limited incumbents such as the airline industry in Taiwan.

Driving Airline Business Strategies through Emerging Technology

Driving Airline Business Strategies through Emerging Technology PDF Author: Nawal K. Taneja
Publisher: Routledge
ISBN: 1351942824
Category : Transportation
Languages : en
Pages : 272

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Book Description
In the rapidly evolving airline industry, new technologies play an increasingly critical role in the delivery of real and perceived value in reducing costs, enhancing revenue, and improving customer service and customer safety/security. This book focuses at a senior executive level, examining the key forces affecting the airline business and their potential in terms of short and long-term strategies. The author discusses the role of emerging technology on the airline industry, defined very broadly and including computers, information, databases, aircraft, telecommunications, Internet, wireless, speech recognition, face recognition, etc. His argument is that technology should not only be an enabler of business strategy but crucially the driver of business strategy. The central theme is the vital interaction between technology and business strategy across a wide spectrum of functions - executives sharing their insights of what is needed in terms of revolutions in consumers, technologies, and productivities. What has held airlines back are not so much legacy systems but legacy mindsets, organizational structures and processes, as well as the intelligent selection, investments, and implementation of value-adding technologies. The book is the outcome of the author's own experience while working with a number of airlines and his participation in many discussions with practitioners in the airline and technology firms.

Capital Structure and Socially Optimal Capacity in Oligopoly

Capital Structure and Socially Optimal Capacity in Oligopoly PDF Author: Tae Hoon Oum
Publisher:
ISBN:
Category : Aeronautics, Commercial
Languages : en
Pages : 48

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Book Description


Transforming Airlines

Transforming Airlines PDF Author: Nawal K. Taneja
Publisher: Routledge
ISBN: 1000059022
Category : Transportation
Languages : en
Pages : 331

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Book Description
This book provides a flight plan for riding the impending connectivity transformation curve. It takes the perspective of actionability, highlighting initiatives that executives in airlines and related businesses can use from the insights of multi-industry executives. The emphasis is on execution, not on the concepts themselves. There is a cluster of at least four distinct megatrends that may converge to form disruptive conditions: (1) elevated expectations of existing and new customer segmentations, those who expect available and accessible air mass transportation systems, and those who expect connected services and seamless travel on different modes of transportation; (2) new emerging technology, incorporated in the air and ground vehicles, that will create new opportunities for existing and new service providers to offer new value propositions; (3) platforms developed around the ecosystem of customers; and (4) the impact on travel that the fast-changing demographic and economic characteristics of two major countries: India and China. These megatrends could lead existing or new businesses to create value propositions specifically dedicated to the new segments once each reaches a critical mass. Drawing on the author’s own experience in the airline industry and related businesses, this book discusses the "how", relating to reimagining the business, re-entrepreneuring the organization, innovating through partnerships, reengaging with customers and employees, and rebranding the business in response to these trends. This book is recommended reading for all senior-level practitioners of airlines and related businesses worldwide.

Harnessing Digital Innovation for Air Transportation

Harnessing Digital Innovation for Air Transportation PDF Author: Yilmaz, Ayse Asli
Publisher: IGI Global
ISBN:
Category : Technology & Engineering
Languages : en
Pages : 215

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Book Description
The aviation industry faces an unprecedented challenge – the digital transformation revolution. While digital technologies promise immense benefits in terms of efficiency, safety, and passenger experience, they also bring forth intricate challenges. Navigating through complex regulatory frameworks and safeguarding against cybersecurity risks has become a paramount concern for aviation professionals and academics alike. The industry's future success hinges on its ability to adapt to this digital revolution while effectively managing the potential pitfalls it presents. Harnessing Digital Innovation for Air Transportation emerges as a timely and comprehensive solution for academic scholars in aviation management. It offers a profound exploration of how digital innovations are shaping various facets of aviation and provides in-depth strategies to address the challenges presented by this digital revolution. From understanding the impact of digital transformation to harnessing data analytics, managing safety, enhancing the passenger experience, and delving into emerging technologies, this book equips readers with the knowledge and tools to thrive in the digital age of aviation.

A Strategic Analysis of Chinese Airline Industry under Online Environment

A Strategic Analysis of Chinese Airline Industry under Online Environment PDF Author: Hang Liu
Publisher: Scientific Research Publishing, Inc. USA
ISBN: 1618964364
Category : Technology & Engineering
Languages : en
Pages : 111

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Book Description
The boom of internet is causing another industrial revolution. It is necessary for Chinese airlines to develop E-business in order to keep their competitive advantages. China Southern Airlines is the first Chinese airlines to enter E-business sector and is fairly successful in Chinese civil aviation market. However, comparing with British Airways, current E-business strategy in this company quite falls behind. After a strategic analysis, it is clearly that E-business is a profitable strategy for China Southern Airlines and should be applied further. It is quite urgent for China Southern Airlines to enlarge and improve its E-business strategies so that it can consolidate its leading position in this market segment. Therefore, some reasonable future strategic choices are put forward and a recommendation is given. On the other hand, the explosion of Chinese economy provides a rapid growth of air traffic world widely. British Airways and other foreign airlines would increase their profits significantly from Chinese air market.

Innovation in Commoditized Service Industries

Innovation in Commoditized Service Industries PDF Author: Maximilian Rothkopf
Publisher: LIT Verlag Münster
ISBN: 3643100191
Category : Airlines
Languages : en
Pages : 246

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Book Description
The passenger airline industry is a prominent service industry that is becoming increasingly commoditized. As little empirical work in this field exists, this study contributes to research by exploring how passenger airlines leverage innovation in such market conditions from a strategic and organizational view. Comprehensive case studies of a sample of eight passenger airlines constitute the empirical basis. The analysis detects patterns of innovations and draws conclusions on the strategic innovation behavior in the airline industry. The study proposes an organizational concept and a strategic approach for airlines to innovate in an increasingly commoditized market.

Simpli-Flying

Simpli-Flying PDF Author: Nawal K. Taneja
Publisher: Routledge
ISBN: 1351900048
Category : Transportation
Languages : en
Pages : 178

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Book Description
The airline industry is in a state of radical restructuring as its markets and key stakeholders (customers, airline labour and management groups, governments, and the financial community) adjust to the new aviation realities. Airline executives can be forgiven for being overwhelmed by technology proliferation, zestful new paradigm airlines, September 2001, business cycles, Iraq, SARS, and animal diseases. The leadership challenge for all carriers is now to select and execute appropriate business models, thinking both 'inside' and 'outside' the 'box', to turn conventional wisdom upside down to achieve dramatic increases in productivity. Some legacy carriers still need to create an effective strategy for much larger cycles that encompass major discontinuities. Burdened by past decisions, they are forced to fight with one hand tied behind their back to 'convert volume to value', to survive and prosper. Some new airlines have been at the forefront of shaping change, developing a vision of the mass-market, assessing the customer value of their core processes, and using a 'back-to-basics' business approach. Both groups should take a sideways glance at what works in other industries and implement those insights into actions. Some examples featured in this book include: ” Wal-Mart's virtually real time inventory system; ” Target's business model based around a unique customer experience; ” Dell Computers' business model based around direct sales and mass customization; ” Unilever's organizational structure around value creation and value delivery departments; ” Shell International's development of scenarios of alternate futures; ” Harrah's Entertainment's use of information technology to recognize and reward valuable customers; ” The Warehouse's communication system with its suppliers to produce efficiency at both ends for the common benefit of the customer; ” Nissan's cross-functional teams; ” DoCoMo's management of human passion in customers; ” Nike's innovation resulting in 'industry-transforming' products; ” Toyota's 'Construction of Cost Competitiveness for the 21st Century'. Written by an experienced airline business strategist and international in scope, this wide-ranging book identifies challenges and problems, presents comprehensive analyses and suggests some solutions. Key features include: ” a comparison with 14 other business sectors (unique amongst aviation books); ” examples of airlines who have changed their business models; ” a detailed study of branding, including mistakes and critical success factors; ” how to manage risk by transforming supplier relationships; ” plausible scenarios for the future to prepare for major transformation; ” the emerging role of passenger management systems to identify, serve, and retain high value passengers. The author identifies the new realities and the obstacles to change, the need to revitalize product development and renew the customer experience. He deals with public policy and the need to revise supplier relationships, especially with aircraft maintenance providers, and looks at successes and failures in other industries. This is rounded off with a clarion call to governments, labour unions, airports, manufacturers, suppliers and above all airline management, to shake off the past, and to address the challenges and opportunities. His approach is to provide impartial analysis and pragmatic insights into vital enablers of change, potential business models, execution strategy, ways to make stakeholders more influential, wisdom from other businesses, and to present scenarios to make busy executives stop and think. The readership includes the broadest cross-section of practitioners in the global airline and related industries, as well as those affected by the industry and seeking a deeper understanding of it. This includes including airlines, government civil aviation departments, the aviation divisions of the financial community (investment banks and leasing companies), aircraft manufacturers and their suppliers, airports, information technology companies, as well as customers and other stakeholders.

Re-platforming the Airline Business

Re-platforming the Airline Business PDF Author: Nawal K. Taneja
Publisher: Routledge
ISBN: 0429768974
Category : Transportation
Languages : en
Pages : 222

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Book Description
Airline business models continue to be shaped by powerful forces relating to customers, complexities and regulators. However, at the same time, there are emerging technologies that can help airlines cater to the needs of their changing customer bases and manage the complexities of the business. In his previous books, Nawal Taneja has deliberated on these forces and how the airline industry is poised for disruptive change that could come from within or outside of the industry. He also discussed the point that the airline planning systems and process in use are neither contemporary nor sufficiently integrated to meet the changing needs of customers who now are looking for outcomes, not products. In Re-platforming the Airline Business: To Meet Travelers' Total Mobility Needs, Taneja not only reiterates the need for transformation of the airline business but provides a map of the transformational process. This book proposes that different sectors of the aviation industry, particularly airlines and airports, should consider using not just a wide array of technologies (Artificial Intelligence, biometrics, blockchain, and the Internet of Things), but also specifically-designed customer-centric platforms to make informed decisions and to develop and implement transformative strategies to meet travelers’ total mobility needs. These technologies and platforms can enable airlines and airports to achieve scale and scope as well as agility and flexibility (through strategic partnerships) to offer intelligently aggregated travel-related services right now. Subsequently, they will enable various members in the travel chain to provide solutions to travelers’ global mobility requirements, effectively and with better experiences.

Airline Industry

Airline Industry PDF Author: Nawal K. Taneja
Publisher: Routledge
ISBN: 131718307X
Category : Business & Economics
Languages : en
Pages : 322

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Book Description
Many business sectors have been, and are being, forced to compete with new competitors-disrupters of some sort-who have found new ways to create and deliver new value for customers often through the use of technology that is coupled with a new underlying production or business model, and/or a broad array of partners, including, in some cases, customers themselves. Think about the disruption created by Apple by the introduction of the iPod and iTunes, and by Netflix within the entertainment sectors using partners within the ecosystem; think of Uber that didn’t build an app around the taxi business but rather built a mobility business around the app to improve customer experience. Airline Industry considers whether the airline industry is poised for disruptive innovations from inside or outside of the industry. Although airlines have a long history of continuous improvements and innovation, few of their innovations can be classified as disruptive innovations. The few disruptive innovations that did emerge were facilitated, for example by new technology (jet aircraft) and government policy (deregulation). Now there are new forces in play-customers who expect to receive products that are more personalized and experience-based throughout the entire journey, new customer interfaces (via social media), advanced information systems and analytics, financially powerful airlines based in emerging nations, and the rise of unencumbered entrepreneurs who think differently as well as platform-focused integrators.