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Glasgow Prestwick Airport

By W. Chan Kim,  Renée Mauborgne,  David Champion
Published 01 Jan 1998
Reference 4739
Topic Strategy
Industry Airlines/Aviation,  Transportation/Trucking/Railroad
Region Europe
Length 12 page(s)
Language English
Inspection copy
Teaching note
6.00
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Summary

The case describes the turnaround of a moribund Scottish airport sold off by BAA, the leading airport operation in Britain. Although the air transportation industries are experiencing deregulation, which appears to favour rich incumbents, Prestwick Aviation Holdings Limited (PAH) manages to succeed where most observers predicted it to fail.

Teaching objectives

The case is an illustration of value innovation logic at work. Specifically, it aims to show how the adoption of a non-conventional strategic thinking enabled PAH to identify opportunities at Glasgow Prestwick which BAA did not recognise and to deliver superior value at lower costs for all the airport's users.

Keywords
  • RD0198
  • AIRLINE
  • UK
About the authors
Kim

W. Chan Kim

Distinguished Professor of Strategy and International Management, Emeritus
Mauborgne

Renée Mauborgne

Affiliate Professor of Strategy

David Champion


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