Subject category:
Strategy and General Management
Published by:
INSEAD
Version: 06/2023
Revision date: 9-Jun-2023
Length: 24 pages
Data source: Field research
Abstract
Between 1981 and 1987, SAS has undergone a remarkable transition under a new management team headed by Jan Carlzon. From being a loss-making, demoralised organisation that competed at the periphery of the airline industry, it has become a highly profitable and energetic company that is an important player in this rapidly changing global industry. The case describes the actions taken by the company to achieve such a remarkable turnaround, including the changes in its strategy, organisation, management processes, and corporate culture. The problems of the company are, nevertheless, not over. It still has to find a way of remaining a viable player in the increasingly deregulated and concentrated industry where most major players boast of size and resources considerably greater than those of SAS. Management now has to focus on this task of building a sustainable competitive advantage, the feasibility of which is far from obvious.
Time period
The events covered by this case took place in 1988.Geographical setting
Region:
World/global
Featured company
SAS
Industry:
Airline
About
Abstract
Between 1981 and 1987, SAS has undergone a remarkable transition under a new management team headed by Jan Carlzon. From being a loss-making, demoralised organisation that competed at the periphery of the airline industry, it has become a highly profitable and energetic company that is an important player in this rapidly changing global industry. The case describes the actions taken by the company to achieve such a remarkable turnaround, including the changes in its strategy, organisation, management processes, and corporate culture. The problems of the company are, nevertheless, not over. It still has to find a way of remaining a viable player in the increasingly deregulated and concentrated industry where most major players boast of size and resources considerably greater than those of SAS. Management now has to focus on this task of building a sustainable competitive advantage, the feasibility of which is far from obvious.
Settings
Time period
The events covered by this case took place in 1988.Geographical setting
Region:
World/global
Featured company
SAS
Industry:
Airline