Essays on Strategic Alliances - Star Alliance of 1997 Case Study

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The paper "Strategic Alliances - Star Alliance of 1997" is a perfect example of a business case study. Strategic alliances in the business world have noticeably gained a high interest in recent years. In the words of (Quinn, 198), Strategic alliance have been found to provide a conducive commercial environment for maximizing profits while at the same time minimizing costs. This strategy, as is exemplified later in this paper, has helped, among others, the Airline industry. The alliance explored in this paper is drawn from the airline industry, which exemplifies the benefits of collaboration with different competitors in order to not only remain competitive but also to avoid extinction.

In a bid to deliver a high sense of service and satisfaction to customers, airlines make strategic alliances in an attempt to increase destinations and flight frequency. As the business world kept on changing in the 1990s onwards, the airline industry was pressured to develop more sophisticated business solutions to meet the ever-rising demands among its customers. At the same time, increased usage of the internet and globalization emerged and inevitably caused a lot of impact on travelling and the entire environment of the airlines.

It was due to this that the Air Canada, Lufthansa, Thai Airways and United Airlines teamed up forces to come up with the Star Alliance of 1997 becoming a great revolutionary change to this industry which was previously becoming familiar with incremental changes as time passed. By bringing forth a network of airline company’ s, star Alliance aimed at adapting to the changes in global mobility with the antidote of offering a faster and more convenient way of air travelling. MAIN DISCUSSION Following the creation of a network of airline companies, Star Alliance became the first airline alliance to manage to adapt to the change in global mobility and offer a faster and a more convenient way of traveling to its customers.

Star Alliance at the actual start, invested a large number of resources in order to establish themselves as an alliance that is based on partnership, trust and shared values. The members of this star alliance include the Thai Airways, Air China, Turkish Airlines, Air New Zealand, Shangai Airlines, United Airlines, Singapore Airlines, The US Airways, Asian Airlines, South Africa Airlines, SpanAir, BMI, Swiss Air and Polish Airlines. Through the use of the "Move under one Roof" strategy, member airline companies try to improve their services at the same time as they put effort into creating synergies between the members and cut overall costs.

The most recent move that has helped Star Alliance with cutting their costs heavily is the efforts put towards connecting passengers. Star Alliance has managed to increase satisfaction among travelers by ensuring that passengers reach their flight in time.

Since every passenger and every piece of luggage that misses a plane represents a great cost for the airline companies. By reducing the number of delayed customers and their luggage, Star Alliance has focused on saving about 10 million Euros per year. The alliance has also realized the importance of technology and has thus continuously tried to develop new and common technologies in order to improve internal communications as well as creating efficiencies for airlines and customers.


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