American Airlines case scenario was created in 2011 to give a setting for the comparative analysis of two very distinct business models in the U.S. domestic airline industry - the network carrier and the low cost carrier (LCC). These models offer value propositions that are very different.
Businesses apportion resources into variant processes, and they make yields using gain models that are concurrent but different. Yet while the LCC model is perceived by most scholars as disorderly, the two models have successfully co-exist for over forty years, albeit with significant development.
By unpacking how one of the more significant network carriers could grow its model successfully for a very long time before sector structural changes necessitated a revolutionary overhaul, the cases seek to give students insights into the way the distinct model structures have established, how the competing groups have driven their evolution, and the importance of persistently evolving and tuning a firm’s structural model.
PUBLICATION DATE: July 28, 2014 PRODUCT #: 615009-HCC-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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