The concept of business strategy and liaison to business models within air transport industry
The paper shows that the association of business strategy and business models brings about a positive impact in the air transport industry as a result of complexity in price perspectives. This is so as air transport industry is a very technical and complex place which needs a lot of adherence in order for one to achieve the required goals of the firm. In essence, traditional strategic perspectives consider competitive advantage as a way of being credited to external issues hence this gives the firm am edge over competitive (Sascha, Rainer & Mathias, 2012). The business model gives insights that accommodate limitations as the dynamic attitude is imperative in the air transport sector. Thus, this indicates that business model is a conceptualized promising integrator of disparate views on business strategy.
Complexity cost on the other hand does mount quickly in the hub and spoke of air transport industry. This is so as their business a model is predicted on issues of giving clients a larger number of destinations and upgrades to complete itinerary. Thus, it implicitly accepts a slower business pace that is designed to accommodate change in the business sector. In essence, this entails that the hub and spoke business model depends on highly sophisticated information that would drastically optimize its complex operations (Harrington & Ottenbacher, 2011). This illustrates that business strategy in liaison with business model generates to complex cost in the air transport industry.
This is so as the aspects are put into practice properly until a proper cost is reached in order to satisfy their clients. In the event of such an entity, the air transport sector is at a safer side as it tends to bring about positive impacts in the industry. In addition, this entails that the presence of business models in relation to business strategy, there is a complexity in price that makes the air transport industry to have a high short run fixed cost (Holloway, 2008). This contributes to output produced over which fixed cost can be averaged. This is so as basing on the way the industry is run, output sold is sold at costs that surpass the cost of generating the cost of both sold and unsold productivity.
Conclusion
Basing on the issue of the air transport sector, the concept of business strategy and in relation with business models do bring about a complex cost in the industry. This is so as new entities are introduced in the sector with the aim of satisfying both clients and the staff involved. Therefore, they are effective approaches as they contribute to a positive change in the industry. Furthermore, they enable the industry to be perceived as being modest as they satisfy the needs of the involved parties (Holloway, 2008). Fundamentally, it is fulfilling to invest in such a sector it is based on the issues of business strategy and business models as this will generate towards a complex cost that will be worth the satisfaction.
Key words: business model, business strategy and complexity costs
References
Holloway, S (2008) Straight and Level: Practical Airline Economics, Edition 3, Ashgate Publishing Company.
Harrington, R & Ottenbacher, M (2011) Strategic management. International Journal of Contemporary Hospitality Management, ISSN 0959-6119,volume 23, p. 439.
Sascha, K, Rainer, H & Mathias, F (2012) Strategic Entrepreneurship: structuring a new field of research. International Journal Of Strategic Management, ISSN 1555-2411, Volume 12, p. 126.
Bruce, S & Irvin, Z (2012) Entrepreneurial role models and the preservation of market value. International Journal of Strategic Management, ISSN 1555-2411, Volume 12, p. 17
