Journal of Management Research
Volume 3, Number 2 ( August 2003)
ISSN: 0972-5814 Online ISSN: 0974-455X
Strategic Group Performance in the Commercial Airline Industry Strategic Response to Structural Disequilibrium
Sam D Cappel, Terry R Pearson and Eric J Romero
| Abstract |
Research based on Porter’s typology of strategic groups (Cappel, Tucci & Wyld, 1996) indicated
that the most successful U.S. based airlines at that time belonged to the strategic group that employed a strategy combining elements of low-cost and differentiation. Later, as deregulation of the industry was introduced in Europe, the authors found that superior financial performance was achieved by European airlines that employed a singular low-cost approach. After the events of September 11, 2001 it appears that the most successful U.S airlines in terms of financial performance are those adopting a low-cost approach. The theoretical question to be examined is whether recent events creating disequilibrium within the industry have resulted in temporary or permanent changes in the relationship between financial performance and generic strategy choice.
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