by Kenneth D. Pritsker
No man is an island and, increasingly, no company or industry can .function profitably without some degree of intra-industry integration. Through a model based on companies competing in major segments of the air transportation industry, key relationships are identified among industry segments in a way that reconciles internal and external industry views. The model captures business processes, value chains, and interactions that generate end products in order to isolate strategic ...view middle of the document...
As an industry's scope expands, activities are developed to coordinate cross-industry interactions. In many cases, an industry's integrative activities are more profitable than its traditional operations because of the critical nature of the functions provided and the power gained by coordinating these activities.
This paper introduces strategic reeingineering as a framework for understanding an industry in terms of its processes and value-added chains. This internal macro-process perspective on an industry's operations creates new strategic issues to address how industries and companies will operate as a set of integrated value chains.
In this paper, the strategic reengineering industry framework is applied to major product segments of the air transportation industry: airports, airlines, aircraft, maintenance, and components. A strategic reeingineering model is developed that identifies the interrelationships among the product segments. The paper concludes by identifying strategic process issues and discussing innovative strategies to strengthen a company's position in an industry.