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Airlines’ Flexibility in Facing Regulatory Uncertainty: To Anticipate or Adapt Case Solution & Answer

This Case is about COMPETITIVE STRATEGY

PUBLICATION DATE: November 11, 2011 PRODUCT #: CMR496-PDF-ENG

Coping with hesitation is a fundamental confrontation for companies. One way they are able to react is by building up tactical elasticity. By viewing airlines’ flexibility results to regulatory ambiguity associated with their inclusion in the European Union Emission Trading Scheme, this informative article suggests that companies can react to regulatory uncertainty by developing such flexibility in two ways: they can either expect the possible effects of shifting regulatory states and attempt to get ready for them; or they are able to adjust quickly and reasonably to them once the regulatory scenario is now clear. By analyzing evidence from nine case studies, the article shows that every kind of result calls for a certain package of abilities and identifies the organizational abilities needed to pursue an anticipatory or adaptive strategy.

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