Airlines Try to Cut out Middlemen


This article in the economist explores the strategic moves airlines made as they entered the internet era (online reservations, etc.). Thinking that travel agents would go the way of the dinosaur, the stopped paying commissions and built their reservation web pages. However, this ultimately created powerful online reservation systems that the airlines now must pay commissions to. The article provides a road map on how NOT to use the 5 forces in developing a strategy…

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