Stuck in the Middle Revisited: The Case of the Airline Industry

Abstract

Develop a conceptual m e w o r k that could be used to explorethe extent to which airlinecompaniessuccessfullypursuethebest-costprovider (orintegratedcostleadershipldifferentiation)strategy, and how they manage to resolve the trade-off between low-cost and differentiation. // Many so-called traditional camers have chosen to create low-cost subsidiaries to try to compete with newly established low cost carriers. However, this strategy has not been successfbl and seems to further demonstrate the soundness of the "stuck in the middle" argument.