Determinants And Drivers Of Entry Modes

3378 WordsOct 19, 201414 Pages
Determinants and Drivers of Entry Modes Within the Aviation Industry Rory S Smith Global Strategy State University of New York: Empire College The region of Asia and its surrounding areas are the fastest growing profitable markets for the airline industry. Countries like China with its vast economic expansion is attracting more businesses and manufacturers to the region. As such, air travel demand is higher than before and western based airlines like United, Delta and American continue to compete to enter these markets or even close to it. It is without a doubt that gaining at least one landing spot anywhere in the Asian market can significantly improve the route structure for airlines and profit. This paper will seek to explore the drivers of entry modes as it relates to the aviation industry. It will look at Delta Air Lines and how such a company entered the Asian market after its merger with former US carrier Northwest Airlines. This paper will examine the process of the merger and the challenges Delta faced while entering a new market with a new logo and strategy. It will seek to identify the airline industry strategy as it relates to the BCG matrix using examples from various airlines such as American. Entry Modes in the Airline Industry Air transportation has significantly impact the expansion of world trade and tourism in many countries around the world. The industry continues to
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