Business Failure Case Study

Choose any company (national or international) from the past 200 years that has failed.
Paper should include a detailed analysis of; history, key reasons for failure, what they could of done (if any) to succeed, what you took away from their failure and conclusion/summary.
Term paper should be a minimum of 7-10 pages in length(including reference page)
Please only use a maximum of 20% of cited work (80% must be your own ideas)
Please do not use any company that failed due to a scam.

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This report analyses the failure of the Swiss airline Swissair. The formation of the airline dates back to March 26, 1931 when it was formed as a result of merger of Zurich-based Ad Astra Aero AG with Basler Luftverkehr (Balair). Since its inception, the company has been using a differentiation strategy in which it seeks to provide high quality services to its customers such as safe travel, reliability, comfortable travel by passengers and punctuality that had helped it to create a strong brand image for itself in the marketplace (Gratenau, 2002).

The airline had used several innovative strategies to build its brand name. As an example, as a first-of-its-kind move in Europe, air hostesses were employed on the passenger flights from 1934 so as to assist travelers. Post World War II, the airline witnessed rapid growth and its high pace of growth had helped it to emerge as a major international airline across the globe in terms of both available passenger miles and passengers carried. Since the 1960s to the demise of the company in 2001, its rank across the globe was amongst the top 20 airlines across the world on a consistent basis. However, the commitment of the company to quality proved expensive for the company. Its personnel costs accounted for about 39 % of the total operating costs of the company which was amongst one of the highest ratios in the industry (SAir Group, 2001). Due to the high levels of operating leverage, the break-even load factor of the company also increased....

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