A feeling of concern engulfed the general manager for the Dalian International Airport in China. Two years subsequently he had successfully established Bohai Rim Area Airport Aviation Marketplace Strategic Alliance and the Northeastern Hinterland in 2009, it was confronting dire external and internal hurdles.
Competitors had begun to affect on the coalition by intensively adding flights to regional airports with the reinforcement of subsidies from the local and provincial governments. As further traffic was gained by coalition members, they commenced to compete for transportation resources, which challenged the organization's sustainable development.
From the beginning, Dalian International Airport, as the core of the organization, had shared its courses and ticket fares with other alliance member airports, had eliminated landing fees for stopover flights and had arranged a trade fair to instigate interactions between small regional airports and also the airlines that had blown them off precedingly, not comprehending how China's booming economy was making even distant routes potentially rewarding. There were three alternatives available fot the general manager: strengthening internal ties to resist external forces, escalating the market position of his airport and utilizing outside help. All three alternatives had their advantages and disadvantages.
PUBLICATION DATE: January 10, 2014 PRODUCT #: W13561-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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