A Boolean Approach to Airline Business Model Innovation

Research in business model innovation has identified its significance in creating a sustainable competitive advantage for a firm, yet there are few empirical studies identifying which combination of business model activities lead to success and therefore deserve innovative attention. This study analyzes the business models of North America low-cost carriers from 2001 to 2010 using a Boolean minimization algorithm to identify which combinations of business model activities lead to operational profitability. The research aim is threefold: complement airline literature in the realm of business model innovation, introduce Boolean minimization methods to the field, and propose alternative business model activities to North American carriers striving for positive operating results

The Winning Hybrid - A case study of isomorphosm in the airline industry

The deregulated scheduled passenger airline industry is in a constant state of motion as managers continually adapt their business models to meet the challenging market environment. Such adaptation has led to a variety of airlines populating the industry; from the birth of low-cost carriers to the transformation of state-owned behemoths to lean and successful carriers. These dynamics challenge airline managers to continuously acclimate their business models and to understand industry evolution. This doctoral dissertation addresses the issue of industry evolution and attempts to propose future airline business models based on airline behavior. The intention is to improve understanding of industry evolution, propose a method for constructing future business models, and aid airline management in future strategic decisions. Three central themes are raised in the research: business model heterogeneity and its impact on airline performance, innovation and imitation as a justification for business model heterogeneity, and future business models grounded on airline innovation and imitation. Each theme forms the basis for the project’s three analyses. The research is categorized according to the customary industrial segmentation of full-service carriers, low-cost carriers, and regional carriers. The findings show that business model heterogeneity is evident at varying degrees in the industry, and that there is a positive relationship between the level adherence to a strategic group’s traditional business model and financial performance. This indicates that airlines that abide by their strategic group’s traditional business model perform better than those that differentiate themselves form the traditional business model. The low-cost carrier group is the most heterogeneous while the full-service carrier group is the most homogenous, which one may attribute to the historical emergence of these two groups. Results from a global survey distributed to airline CEOs show that business model differentiation is predicated on both innovation and imitation. The research shows that all airlines innovate, however business model changes based on this phenomenon may only afford an airline an advantage for a limited time period as imitation is prolific in the industry. Airline behavior indicates that airlines that populate the periphery of their strategic group are more prone to imitate other strategic groups. In addition, it is shown that airlines that closely adhere to their strategic group’s traditional business model are more likely to imitate airlines populating their own strategic group. The final analysis is based on the presence of innovation and imitation in the industry and incorporates these concepts in algebraic analyses which determine the unique combinations that continuously lead to a positive operating margin. The business model results suggest that the clear, historical distinctions between the strategic groups in the industry are becoming blurred, and that a winning hybrid may emerge

The Challenge of Social Media

Over the years online marketing has grown in importance in the airline industry. This media space offers airlines numerous marketing tools, one of the most recent being social media. Social media allows airlines to interact directly with customers via various Internet platforms, and monitor customer opinions and evaluations of services. This exploratory paper studies airlines’ use of social media on Facebook and Twitter for a defined period of time. The paper analyses the content of social media posted by airlines and provides a categorization of the content according to the promotional marketing mix. A netnographic method has been adopted for the examination of these social media platforms. Study findings show that there is poor strategic perspective and a lack of continuity in the use of social media. Results may aid marketing departments in their marketing and social media communication strategies, while at the same time complementing current marketing research

Effectiveness of accelerated perioperative care and rehabilitation intervention compared to current intervention after hip and knee arthroplasty. A before-after trial of 247 patients with a 3-month follow-up

<p>Abstract</p> <p>Background</p> <p>In Denmark, approximately 12,000 hip and knee arthroplasties were performed in 2006, and the hospital costs were close to US$ 110,000,000. In a randomized clinical trial, we have recently demonstrated the efficacy of accelerated perioperative care and rehabilitation intervention after hip and knee arthroplasty compared to current intervention under ideal circumstances. We do not, however, know whether these results could be reached under usual circumstances of healthcare practice. We therefore investigated whether length of stay after implementation of accelerated perioperative care and rehabilitation after hip and knee arthroplasty could be reduced in a normal healthcare setting, and how the achieved results matched those observed during the randomized clinical trial.</p> <p>Methods</p> <p>An effectiveness study as a before-after trial was undertaken in which all elective primary total hip and total knee arthroplasty patients were divided into a before-implementation group receiving the current perioperative procedure, and an after-implementation group receiving the new accelerated perioperative care and rehabilitation procedures as provided by a new multi-disciplinary organization. We used the Breakthrough Series Collaborative Model for implementation. The primary outcome measure was in hospital length of stay (LOS), and the secondary outcome measure was adverse effects within 3 months postoperatively.</p> <p>Results</p> <p>We included a total of 247 patients. Mean LOS was significantly (<it>P </it>< 0.001) reduced by 4.4 (95% CI 3.8–5.0) days after implementation of the accelerated intervention, from 8.8 (SD 3.0) days before implementation to 4.3 (SD 1.8) days after implementation. No significant differences in adverse effects were observed. LOS in this effectiveness study was significantly lower than LOS reported in the efficacy study.</p> <p>Conclusion</p> <p>Accelerated perioperative care and rehabilitation intervention after hip and knee arthroplasty was successfully and effectively implemented. Results obtained during usual hospital circumstances matched the results achieved under ideal circumstances in this group of patients.</p

How Europe's Low-Cost Carriers Sidestepped Traditional Carriers' Competitive Advantages

The initial appearance of U.S. low-cost carriers forced incumbents to create new forms of competitive advantage. These were successful hindrances for nearly two decades. Concurrently, incumbents in Europe implemented similar tools, although within a regulated market. However, Europe's low-cost airlines were more successful and had a greater initial impact in their early years than their U.S. compatriots. This paper will attempt to highlight some of the differences between the two markets and explain why European low-cost airlines had more advantages following their market deregulation and sidestepped traditional carriers’ competitive advantages