Chapter

Macro‐varieties of Capitalism and Micro‐varieties of Strategic Management in European Airlines

Mark Lehrer

in Varieties of Capitalism

Published in print August 2001 | ISBN: 9780199247752
Published online November 2003 | e-ISBN: 9780191596346 | DOI: http://dx.doi.org/10.1093/0199247757.003.0011
 Macro‐varieties of Capitalism and Micro‐varieties of Strategic Management in European Airlines

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The relevance of the varieties‐of‐capitalism approach to strategic management is demonstrated by the evolution of competition in the European air‐transport sector. In the highly regulated environment that prevailed until the mid‐1980s, the German carrier, Lufthansa, was highly successful in a setting that rewarded incremental innovation, especially in engineering. After deregulation in the European airline industry began, rapidly evolving areas such as selling systems, distribution channels, and marketing techniques acquired central strategic importance. In this altered context, British Airways, benefiting from its LME home institutional environment, surpassed Lufthansa in its capacity to adopt radical innovation in its commercial systems.

Keywords: airline industry; British Airways; innovation; Lufthansa; strategic management

Chapter.  9907 words. 

Subjects: Economic Systems

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