Case Study LAN Airlines in 2008: Connecting the World to Latin America
For this week’s Discussion, read the case study, “LAN Airlines in 2008: Connecting the World to Latin America” (Casadesus-Masanell, Mitchell, & Tarzijan, 2009) and the article, “Blue Ocean Strategy,” by Kim and Mauborgne (2004). Then re-read Porter’s (1983) “Note on the Structural Analysis of Industries.” This time, pay particular attention to Porter’s analysis of direct competition and external value-chain elements, such as suppliers and customers.
Next, imagine yourself as a consultant to the senior leaders at LAN Airlines. They have engaged you to recommend strategic growth opportunities, which you will support with evidence and analysis. As you analyze the case study on LAN airlines and craft your recommendations, consider how the forces discussed by Porter influence LAN Airlines’ decisions and its strategic choices.
Record your analysis of LAN’s competitive ecosystem and growth opportunities in the document, “Tools for Tracking Your Strategic Thoughts,” using tabs “EXT 5_Forces Rivalry,” “EXT 5_F Customer Supplier Power,” and “EXT_New Entry and Subs.” The document, “Using ‘Tools for Tracking Your Strategic Thoughts,’” provides guidance on how to use these tabs of the spreadsheet.
On the final tab, “EXT_New Entry and Sub,” be sure to complete the section in Column E: “FACTORS IMPORTANT IN IDENTIFYING AND ASSESSING THE POTENTIAL FOR SUBSTITUTES.” Use your analysis of potential substitutes to identify potential “blue ocean” opportunities that may be available for LAN to exploit in the near future.
Create an analysis that explains how the structural forces discussed by Porter affect the strategic choices for LAN airlines. Then, provide 2–3 specific recommendations to better prepare LAN’s senior leaders for the future. Focus your recommendations on potential “blue ocean” opportunities that LAN airlines can exploit for strategic growth. Be sure to support your recommendations with references to the resources from Weeks 1–4 and your own analysis.
Include two sections in your post:
o Section 1: Analysis: How the competitive ecosystem impacts strategic options
o Section 2: Implications of the Analysis: 2–3 strategic recommendations for “blue ocean” opportunities
Each section must integrate evidence from the case, and from prior MBA program course concepts, in a 2- to 3-paragraph argument. Explain clear strategic options that LAN must do within any of the business functions (marketing, finance, accounting, etc.) and why. General recommendations, such as “hire a consultant” and “pay for a marketing study,” are not acceptable.
Attach your version of the document, “Tools for Tracking Your Strategic Thoughts,” with the “5-Forces Industry” completed tab for this week.
For this week’s Discussion, read the case study, “LAN Airlines in 2008: Connecting the World to Latin America” (Casadesus-Masanell, Mitchell, & Tarzijan, 2009) and the article, “Blue Ocean Strategy,” by Kim and Mauborgne (2004). Then re-read Porter’s (1983) “Note on the Structural Analysis of Industries.” This time, pay particular attention to Porter’s analysis of direct competition and external value-chain elements, such as suppliers and customers.
Next, imagine yourself as a consultant to the senior leaders at LAN Airlines. They have engaged you to recommend strategic growth opportunities, which you will support with evidence and analysis. As you analyze the case study on LAN airlines and craft your recommendations, consider how the forces discussed by Porter influence LAN Airlines’ decisions and its strategic choices.
Record your analysis of LAN’s competitive ecosystem and growth opportunities in the document, “Tools for Tracking Your Strategic Thoughts,” using tabs “EXT 5_Forces Rivalry,” “EXT 5_F Customer Supplier Power,” and “EXT_New Entry and Subs.” The document, “Using ‘Tools for Tracking Your Strategic Thoughts,’” provides guidance on how to use these tabs of the spreadsheet.
On the final tab, “EXT_New Entry and Sub,” be sure to complete the section in Column E: “FACTORS IMPORTANT IN IDENTIFYING AND ASSESSING THE POTENTIAL FOR SUBSTITUTES.” Use your analysis of potential substitutes to identify potential “blue ocean” opportunities that may be available for LAN to exploit in the near future.
Create an analysis that explains how the structural forces discussed by Porter affect the strategic choices for LAN airlines. Then, provide 2–3 specific recommendations to better prepare LAN’s senior leaders for the future. Focus your recommendations on potential “blue ocean” opportunities that LAN airlines can exploit for strategic growth. Be sure to support your recommendations with references to the resources from Weeks 1–4 and your own analysis.
Include two sections in your post:
o Section 1: Analysis: How the competitive ecosystem impacts strategic options
o Section 2: Implications of the Analysis: 2–3 strategic recommendations for “blue ocean” opportunities
Each section must integrate evidence from the case, and from prior MBA program course concepts, in a 2- to 3-paragraph argument. Explain clear strategic options that LAN must do within any of the business functions (marketing, finance, accounting, etc.) and why. General recommendations, such as “hire a consultant” and “pay for a marketing study,” are not acceptable.
Attach your version of the document, “Tools for Tracking Your Strategic Thoughts,” with the “5-Forces Industry” completed tab for this week.
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