Strategic managment Essay Example | Topics and Well Written Essays - 2000 words

Strategic managment - Essay Example The airline has around 90 destinations and operates with 176 aircrafts (Nationsonline, n.d.). However the central base is situated at the Copenhagen Airport (Beyman, n.d.). The present study entails about the challenges faced by the company in the 1980s and also offers the solution by which the company surmounted the challenges. The company applied vertical integration strategy in order to overcome the challenges. The threats mainly came from intense rivalry within the aviation industry. This has declined the sales volume as well as the profitability of the company. The new management found the only way to overcome the issue by carrying out an end-to-end restructuring of the company. It happened through successful vertical integration. The company was fully restructured and growth was witnessed. It vertically integrated with the other divisions such as catering sector, credit card, hotel, and reservation within the aviation industry. The paper will therefore shed light and offers a critical on the vertical integration approach of SAS in reviving their situation. The case entails about Scandinavian Airlines (SAS) where the company had to deal with various issues and how the company recovered from the situation. It was in the year 1970s and 1980s; the company faced various challenges (Gallos, 2008, p.42). The issues led to various disparities among the owners, staffs and the management. Furthermore the stakeholders also did not agree on the reasons portrayed for the big loss and was also unsatisfied with the ways to be adopted for the revival of the company. Hence at this point of a time there was an urgent need of quick and firm decision which will help the restrict or save the company from the verge of a collapse. At that moment of time the management structure was changed and new executives came forward. In the year 1981