Analyzing Strategic Alliances: A Tourism & Hospitality Case Study

This case study provides an analysis of the hospitality and tourism industry, focusing on strategic airline alliances. It examines factors contributing to both successes and failures, incorporating SWOT, macro, and micro context analyses. The study emphasizes the importance of strategic alliances for customer satisfaction, revenue increase, and reduced competition. It explores economies of learning, competitive dynamics, and resource optimization through partnerships. The analysis also considers the potential drawbacks of strategic alliances, such as increased consumer pressure and market limitations, while ultimately advocating for strategic alliances as a means for airlines to survive and thrive in the competitive global market. Desklib offers similar solved assignments and past papers for students.

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1TOURISM: CASE STUDY ANALYSIS
Executive Summary
The respective paper is a case study analysis of hospitality and tourism industry in a form of a
report that introspect the factors responsible for success as well as failures in the field of airlines
alliances. The report has been composed and the elements such as SWOT Analysis, Macro
context and Micro context analysis has been taken into account while framing the report.

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Table of Contents
Executive Summary.....................................................................................................................................1
Introduction.................................................................................................................................................3
Discussion...................................................................................................................................................3
The Macro Context..................................................................................................................................3
The Micro Context..................................................................................................................................4
SWOT Analysis of Strategic Allowance.....................................................................................................5
Conclusion...................................................................................................................................................6

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Introduction
Airlines Industries have history of being the most difficult industry ever to be formed and
maintained. Running an airlines business is tough, difficult and fiercely competitive. The airlines
industry depends upon certain dynamic factors such as seasonal weather and changes in fuel
prices. Strategic Alliance for a hospitality or tourism industry is essential because it helps to not
only improve customer satisfaction but also revenue increase and reduced competition.The
respective paper is a case study analysis of hospitality and tourism industry in a form of a report
that introspects the factors responsible for success as well as failures in the field of airlines
alliances. The report has been composed and the elements such as SWOT Analysis, Macro
context and Micro context analysis has been taken into account while framing the report.
Discussion
The Macro Context
The respective case study is widely concerned about the growth of airlines strategic
alliances which is a reason for the fundamental development of the airlines industry in the global
world. Economies of learning can be defined as the process and development of the economy of
an organization with the help and collaboration of a different organization which is largely based
on experiences they gather in the field of economy and finance (Doganis 2013). The economies
of learning completely depend upon the experiences and wisdom an organization possess while
transacting in the global world. Economies of learning are one main factor which pushes an

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organization to get into a partnership or alliance with other company (Doganis 2013). In the case
study too, most of the airlines companies have gone into a partnership to enable themselves
economy of learning in order to survive, optimize themselves and thrive.
Competition is another important factor in the macro context of the positioning of the
airlines industry (Clark and Vincent 2012). The strategic alliances of the airlines industry with
other reputed airlines companies have always proved to be beneficial in a wider margin for the
respective company. Strategic alliances can influence the company which the firm competes with
and the basis for competition because they can hinder the ability of competitive enterprises or
firms with the help of collaboration and binding them as allies, and not foes or rivals (Greenfield
2014). Therefore, strategic alliances can be taken as defensive force in order to create hindrance
in the path of competition of the firms.
The Micro Context
In the micro context of strategic alliance for airlines industry, certain factors can be
considered. With the help of strategic alliance, an airlines industry can address its imbalance of
inadequacy, rather deficiency in specific resources, skills and other corporate competencies. The
customer perception model in the field of hospitality industry that deals with customer
experience and satisfaction can be utilized and dealt with effectively by the help of collaboration,
which would enable the company to bring different marketing policies that would intensely focus
on customer satisfaction (Radojevic, Stanisic and Stanic 2015). Such problems can be attended
by collaborating with partners who have different sets of attributes who are capable to
compensate the inadequacies. Alliances can provide easy access to route by allowing access to
the assets (tangible as well as intangible) which may have been established for a prolonged
period and have been conserved by the regulations of the government. A strategic alliance of an

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airlines company can also prove beneficial as the partner company can provide the main
company with different ideas, schemes and strategies as to how can the respective company
survive, improve, optimize and thrive in the fierce competitive environment.
SWOT Analysis of Strategic Allowance
Strength
1. Strategic alliance of the airlines
company can improve the company
externally as well as internally as the
partner company might help the actual
company with strategies on investment,
finances and management to a greater
extent (Kleymann and Seristö 2017).
2. Economies of learning can be achieved
through partnership alliance which
would help in securing and maintaining
funds judiciously.
Weakness
1. Lack of substantial marketing presence
in the competitive world where already
there has been significant alliances
between the major airline companies
before.
2. Lack of protection might lead to
groupings of the budding airlines with
the already established airlines
alliances, thereby, providing less
chance to experiment or innovate by
themselves.
Opportunities
1. Strategic alliance in airlines companies
would enable the respective company
explore, create, invent and renovate the
airlines industry with the help of new
Threats
1. Increase in consumer pressure due to
strategic alliance of the airlines
industries. Cost savings are passed on
to the consumers and airports are often

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and progressive partners.
2. Growth and development can be
achieved successfully for an airlines
company by collaborating, rather than
by performing functions alone in the
fierce global world. Improvement in the
risk factors and sections can be
achieved through partnership (Liou
2012).
3. Retaliation of the competitors by
making them the allies and not foes or
rivals, with the help of strategic alliance
among the airlines companies.
scaled down in order to allow more
contestability in the markets (David
2013).
Conclusion
Therefore, according to the case study, it can be concluded that strategic alliance of the
airlines companies in the genre of hospitality industry has certain advantages as well as
disadvantages too. The advantages include introduction of new management and marketing
schemes, retaliation of fierce competitions with the help of collaboration and economies of
learning for a company such as airlines which is significantly difficult to manage and function
smoothly. The disadvantages include increase in consumer pressure, lack of substantial market
growth and protection. However, it has to be remembered that even though strategic alliance

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contains a plethora of disadvantages as well, the independent airlines companies are always
recommended to attain a collaboration, partnership or strategic alliance with any other
(supposedly established) airlines company in order to survive, optimize and thrive themselves in
the global business arena successfully.

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References:
Clark, R. and Vincent, N., 2012. Capacity-contingent pricing and competition in the airline
industry. Journal of Air Transport Management, 24, pp.7-11.
David Mc A, B., 2013. Service quality and customer satisfaction in the airline industry: A
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Doganis, R., 2013. Flying off course: The economics of international airlines. Routledge.
Greenfield, D., 2014. Competition and service quality: New evidence from the airline industry.
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Kleymann, B. and Seristö, H., 2017. Managing strategic airline alliances. Routledge.
Liou, J.J., 2012. Developing an integrated model for the selection of strategic alliance partners in
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Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that
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