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GOL Linhas Aéreas Inteligentes: Developing a Brazilian Airline Model
The case describes the creation and evolution of Brazil's first low-cost airline - GOL. From the outset GOL was driven by innovation and within a few years of operating had become the country's leading airline. Although initially a low-cost carrier, over the years it became increasingly customer-centric, striving to improve the customer experience by removing the pain points of air travel. As competition from new low-cost entrants intensified, could GOL maintain its lead in the domestic market? Was it destined to become the Uber of the airways, in a segment between low-cost and full-service offerings, relying on innovation to keep costs down? The case discusses GOL's options for growth, specifically its potential for international expansion. -
Strategy Lessons from Left Field
Rough schooling helps multinationals from small or developing countries become formidable global competitors. -
Is Your Innovation Process Global?
This is an MIT Sloan Management Review article. Many companies have supply chains that are global. They start with the sourcing of components and raw materials from around the world, then move their basic manufacturing to low-cost locations overseas. But few organizations have innovation processes that are equally global. That is, rarely do businesses have innovation activities that integrate distinctive knowledge from around the world as effectively as global supply chains integrate far-flung sources of raw materials, labor, component, and services. But some companies--Nokia, Airbus, SAP, and Starbucks, among them--have managed to assemble an integrated "innovation chain" that is truly global. They have been able to implement a process for innovating that transcends local clusters and national boundaries, becoming what the authors call "metanational innovators." This process requires three steps: prospecting (finding relevant pockets of knowledge from around the world), assessing (deciding on the optimal "footprint" for a particular innovation), and mobilizing (using cost-effective mechanisms to move distant knowledge without degrading it). When done properly, metanational innovation can provide companies with a powerful new source of competitive advantage: more and higher value innovation at a lower cost.