Business Strategy and Competition for the Future in the Airline Industry

by Isabelle Dostaler and Triant Flouris, Concordia University Aviation MBA, Montreal
The business strategy theory is very useful to help aviation researchers and practitioners to make sense of the current competitive pressure under which airlines all around the world seem to be. As one of the key fields of administrative sciences, strategy can be envisioned as a hierarchy reflecting the organizational structure of multi divisional corporations in which corporate strategy states the general direction – in terms of scope and choice of business sectors – that the firm will follow, while business strategy is a formulation of how the business unit intends to compete in its given business sector.

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