The following is a summation and analytical assessment on the “Star Alliance (A): A Global Network” case study that was published in the fourth edition of “Transnational Management” by Bartlett, Ghoshal and Birkinshaw (C) 2005. The article provides history of the airline industry which includes the emergence of strategic alliances, budget carriers, competition and collaboration, cultural assessment and finishes off with a SWOT Analysis and perspective of the future of the Star Alliance.
The airline industry has grown and evolved by leaps and bounds since the early days of the Wright Brothers. It’s now layered with comprehensive alliances, strategic business models, revolutionary information systems and much more.
The airline industry took flight and yielded its first signs of competition in the late 1970s with deregulation. The US Airline Deregulation Act was signed into law on October 24, 1978 . This act caused the slow reduction in the powers of the Civil Aeronautics Board, which up to that point had strong control over pricing, market entry and most other airline functions. Deregulation in Europe followed similar suit which essentially ended many of the existing constraints on European carriers. continue reading »