Page 1 2
3
When State of Business set out to do this special section on the airline business, we
thought we were looking at one large industry. In fact, there are two. The airline
market is clearly dividing itself between the “low-cost” domestic carriers and the
legacy, or network, carriers that look to global expansion as the way of the future.
“We’ll see ever-increasing segmentation not unlike in other industries,” said Ken
Bernhardt, assistant dean for corporate relations, Regents’ Professor, and Taylor E.
Little Jr. Professor of Marketing. “Specifically,” he added, “the low-price segment will
continue to be important, but other airlines must differentiate themselves through
service or risk losing market share.”
Bill Bogner, associate professor in Robinson’s Department of
Managerial Sciences, voiced similar sentiments: “No industry
has one strategic approach to success. The rough-and-tumble
passenger airline industry is no exception. In tackling this
competitive environment, both of Atlanta’s major carriers seem
to be following strategies that throw the book at conventional
wisdom; but both may be doing exactly what is right to position
themselves into desirable segments of the industry.”
Continued on next page
Top |
Next Page 
|
