The KLM Approach to Alliances

The evolution of the air cargo with respect to business strategies is no longer new after the implementation of key alliances. In this document, there will be utilization of strategic alliances as a way in which the air cargo industry is benefiting from the competitive advantage that it gains. Strategic alliances have been evaluated in different airline firms such as the Sky Team Cargo and the WOW alliance. These are some of the partnerships in the airline industry in such agreements.

As part of the evaluation made the model of activities which is presented in the document shows the importance of value Chain as the key to analyzing strategic cooperation for the airlines. In addition to this, there are strategic implementation practices where the strategic alliances have been included as the key points of reference retrieval for partnership studies. As aforementioned, this document shows the strategic alliances as the key source of a competitive advantage, the reason why organizations form the alliances and hybrids

The fact that strategic alliances are a key for businesses, there are numerous reasons why they benefit organizations and as aforementioned, competitive advantage is one of the reasons. The few alliances that are in existence today as compared to those that were formed years ago is in the ration of 1:2. This evidently points to the fact that most organizations are not motivated to form such alliances since the partnership efforts fail in the end.

The paper evaluates the key main issues which reflect to the fact that strategic alliances the key to competitive advantage in the air cargo industry. The first question will focus on the extent to which the alliances act as a source of competitive advantage for firms that are in alliances. The second question will address the key reasons behind such decisions and it will point at some of the potential benefits for these alliances. The third question will reflect on the use of the value chain model in the airline cargo industry and identify the implementation practices used by companies.

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