Alliance strategy and the fall of Swissair
This paper argues that the Swissair Group's bankruptcy is a direct consequence of mistakes made in implementing its alliance strategy. While the strategy was sound, analysis of the relative resource-dependence between Swissair and its partners will show that Swissair did not need equity to bind its partners to it. Moreover, this approach to operationalising the alliance strategy undermined a corporate level goal to diversify risk beyond the airline business. Financial analysis will show that the airline investments were unprofitable, increased the Group's leverage and weakened its cash position. As a result, the Group did not have adequate resources to recover from external shocks.
Year of publication: |
2002
|
---|---|
Authors: | Suen, Wilma W |
Published in: |
Journal of Air Transport Management. - Elsevier, ISSN 0969-6997. - Vol. 8.2002, 5, p. 355-363
|
Publisher: |
Elsevier |
Subject: | Strategic alliances | Swissair | Qualiflyer | Power | Interdependence | Financial management |
Saved in:
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