Journal of Management Research

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Strategic Group Performance in the Commercial Airline Industry


Affiliations
1 Professor, Department of Management College of Business Southeastern Louisiana University Hammond, Louisiana 70402
2 Deptt. of Mgt., Mktg. and General Business Pickens College of Business West Texas A&M University, Texas 79016-0001
3 Department of Management College of Business Administration University of Texas – Pan American, Texas 78539
     

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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.

Keywords

Airlines Strategy
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  • Strategic Group Performance in the Commercial Airline Industry

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Authors

Sam D Cappel
Professor, Department of Management College of Business Southeastern Louisiana University Hammond, Louisiana 70402
Terry R Pearson
Deptt. of Mgt., Mktg. and General Business Pickens College of Business West Texas A&M University, Texas 79016-0001
Eric J Romero
Department of Management College of Business Administration University of Texas – Pan American, Texas 78539

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.

Keywords


Airlines Strategy

References