Who Are the Winners at Different Stages of the Changing Travel Industry?

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1. Who are the winners at different stages of the changing travel industry? Stage 1: advent of GDS (Global Distribution Systems) American Airlines needed to develop a computerized system to manage its growing inventory of seats effectively, rather than using outdated manual methods. At the time, fortunately IBM and American Airlines developed SABER by chance. Based on its experience with SABER, IBM also developed successful PARS. Winner: IBM is the best winner because it created the highest profits as the initial developer in blue ocean industry. Meanwhile, American Airlines also the winner as it adopted newly developed systems for its management efficiency. Stage2: The Government Intervention GDS companies tyrannized over small airlines and travel agents by discriminating booking fees and using 'halo effect'. In respond to the complaints of airlines and travel agents, GDS' discrimination was prohibited. Winner: Relatively small airlines and travel agents could overcome the obstacle of discrimination. Stage3: Impact of the Internet The popularity of the Internet created the opportunity for a direct distribution channel between airlines and travelers. As bypassing GDS, airlines companies could provide travelers with cheaper air tickets. Winner: Customers buying air tickets at much less cost and airlines not using booking agents, mostly like Southwest Airlines. 2. What are core competitive advantages of companies at different stages of the changing travel industry? (Each stage is the same as question 1) Stage 1: IBM's creativity and practical ability made itself the best winner. At that time, IBM was developing SAGE for the U.S. government. Based on the SAGE experience, IBM could develop SABER, and finally PARS. American Airlines had motive(mobile) power, which could satisfy itself with managing fast-growing inventory of seats

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