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Case
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Reference no. 396-122-1
Authors: Carlos de Pommes (EDHEC - Business School); Mel Horwitch (SKEMA Business School)
Published in: 1996

Abstract

This case study is on Amadeus, a European-based Computer Reservation System vendor in the travel industry, and examines its attempts to create a global alliance with its key US-based competitor, Sabre. The case opens at the beginning of 1992 with Amadeus calling off its planned alliance with Sabre for the third and final time. The main issues addressed are concerned with the strategy options for the company. The case returns to the start of the CRS industry in the US, discussing CRS development and highlighting lessons about competition, entry barriers, value chain linkage between airline and travel agents, and regulation, in order to provide the necessary background for the class to understand the position of the negotiating parties between 1987 and 1992. Each of the three rounds of negotiations between Amadeus and Sabre is explored, which raises diverse issues from technical, financial, political, commercial and organisational perspectives.
Location:
Industry:
Other setting(s):
1992

About

Abstract

This case study is on Amadeus, a European-based Computer Reservation System vendor in the travel industry, and examines its attempts to create a global alliance with its key US-based competitor, Sabre. The case opens at the beginning of 1992 with Amadeus calling off its planned alliance with Sabre for the third and final time. The main issues addressed are concerned with the strategy options for the company. The case returns to the start of the CRS industry in the US, discussing CRS development and highlighting lessons about competition, entry barriers, value chain linkage between airline and travel agents, and regulation, in order to provide the necessary background for the class to understand the position of the negotiating parties between 1987 and 1992. Each of the three rounds of negotiations between Amadeus and Sabre is explored, which raises diverse issues from technical, financial, political, commercial and organisational perspectives.

Settings

Location:
Industry:
Other setting(s):
1992

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