The Internal Environment
In a highly competitive environment like the aviation industry, the players need
to develop true capabilities in core areas, de-emphasize the less important or less
proﬁtable areas and ﬁx what is currently broken. Service industries of all types are
ﬁnding themselves under increasing pressures to cut costs while at the same time
provide even greater customer service.2 This is particularly true in the airline industry.
The airline that successfully navigates the changes necessary to compete in this new