ABSTRACT
This chapter gives a little insight by using some vivid examples of how ALDI runs its business. The world is changing at an accelerated pace, and the airline sector is particularly susceptible to disruptive forces. Airlines operate globally, with thin profit margins and high operating costs, and rely heavily on fossil fuels. Governments influence industry profitability through taxation, regulation, and infrastructure investments, creating an uneven global playing field. As large numbers of people in developing countries grow more prosperous, new air travel markets are emerging. Domestic carriers in these markets enjoy a natural competitive advantage, but history has shown that geographic advantage alone is not sufficient for success. Scale and speed are critical to adapt and deploy resources to new markets. As airline retailing emerges and airlines begin to adopt more traditional retail concepts and strategies to their business, more focus will be placed on optimizing product placement in various distribution channels and personalizing offers to the individual customer.
