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... the company could not create barrier to entry by other companies, build its markets, or integrate its services into US markets. However, at the same time the company had to deal with the issue of creating a untenable competitive situation that created monopoly control. This case is important because it shows the impact of long-term strategic planning.
Canadian Airlines: Reservations About its Future
Problem Statement:
While Canadian Airlines operated in a market that was highly regulated by the government, the company was still sensitive to market changes and had to have an IT system that would guarantee market contact ...

... market share barriers to entry, and switching costs to allow higher profits for Canadian.
By building and strong and interactive reservation system the company was going to be able to create point of sale contact with clients it would not otherwise contact. The interactive SABRE system would allow for trip planning from American sites of origination, and cerate a mutual dependence and enhancement one the part of all organizations involved in the system. Travel agents, airports, and all others with access to the system would be able to plan flights and routes with customer convenience in mind and because of the unique routes Canadian Air ...

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