What business are you really in?

One of the keys, strategic questions that leaders of any company must continuously ask is ‘What business are we really in?’  Repeatedly re-examining and transforming the definition of what you do leads to the discovery of new market spaces and ongoing relevance.

The customer experience provided by airlines is one that I follow closely and often reference, because it’s something most people can easily relate to.  So, I find it interesting to observe how airlines are reshaping the customer experience and value proposition they are delivering, transforming their business in the process.  It turns out, airlines are now making more money selling miles to credit card companies (via co-branded cards) than they are selling seats on a plane.  The miles are in turn used by credit card companies to entice customers to spend and collect points.  So, what business are airlines really in?

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