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When One Business Model Isn't Enough

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Trying to operate two business models at once often causes strategic failure. Yet LAN Airlines, a Chilean carrier, runs three models successfully. Casadesus-Masanell, of Harvard Business School, and Tarzijan, of the Pontificia Universidad Catolica de Chile, explore how LAN has integrated a full-service international passenger model with a premium air-cargo business model while separately operating a no-frills passenger model for domestic flights. LAN's multimodel success comes from recognizing the complementarity of its two high-end services and the distinct, or substitute, nature of its no-frills offering. LAN came to that insight by analyzing the major assets that the models share and the compatibility of the models' operational resources and capabilities. It recognized that the more the models have in common, the more likely they are to generate greater value together than apart; the less they share, the more likely they are to be best executed separately. Nevertheless, managing multiple models is a tall order. LAN has had to face greater complexity, broaden its organizational skills, increase the flexibility of its workforce, and make other investments. But by mastering three models, the company has built formidable advantages that are difficult for competitors to overcome. Its example has shown how, properly applied, the implementation of multiple business models is not a risk but rather a new tool for strategists.

【書誌情報】

ページ数:6ページ

サイズ:A4

商品番号:HBSP-R1201M

発行日:2012/1/1

登録日:2012/1/13

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