How does Turkish Airlines, which is a member of Star Alliance, effect the alliance?

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Research Background/Context

The objective of the strategic alliances in today's world has emerged as one of the key features in the many sectors of economics and includes all kind of industries range from manufacturing, production and services (Babbar and Koufteros, 2008). The airline companies are facing numerous challenges with relation to the forces in the global market place that require these airline companies to collaborate and engage in alliances with not only the local but also the overseas partners in order to better respond to the customer needs and bring the market efficiency as well as to sustain in this competitive industry. Those airline companies that are in strategic networks are viewed to have significant edge over others as these companies are likely to enjoy significant market opportunities to those companies that are working isolated in the airline industry (Zhang and Zhang, 2006; Youssef and Hansen, 1994; Weber and Sparks, 2004). Moreover, the trend of alliances and joint ventures is echoed and deemed as crucial component that is thought to further accelerating the development and sustainable growth of alliance activities within the airline industry (Bergquist et al, 1995; Whyte, 2002; Tsantoulis and Palmer, 2008).

Majority of previous research studies on alliances have largely focus on operational and strategic dimensions relevant to the airline firm which range from management issues, partner selection, types of alliances and partner relationships. Many of these studies of alliances have emphasized the alliances in the airline industry from the perspective of management and firm (Thomas, Tazeeb and Conor, 2011). Hence, these past studies mostly reflected on the factors that contribute to the managerial and operational success of particular airline companies or multiple airline companies that participated in airline alliances (Sultan, Merlin and Simpson, 2000). They also focused on the policy and marketing implications and also took stock on the impact of airline company traffic management and traffic output on alliance and how airline alliance in turn proves to be beneficial for airline in managing the operational and management related issues. Further, some studies reported to investigate the effect of Airline Company on strategic alliance with relation to cargo services and economic output of alliance (Bender & Stephenson, 1998).

The research focuses on two dimensions: the first dimension is to critically analyze the available studies that provide insights into claims concerning the advantages of Star Alliance have on Turkish Airline that helped their travelling easier and comfortable. Following, the second part of this research aims to focus on empirical study that observe the perceptions of passengers especially those that are business travelers to examine what kind of benefits the perceive with strategic alliance of Turkish airlines with Star Alliance and also consider which of these importance of each benefits they consider in choosing Turkish airlines.

Organization Background Turkish Airlines have been chosen as the case study company to investigate the impact of Star Alliance on Turkish Airlines for the consumer ...