Low price airlines are fast growing, and one after the other of the old airline companies are either getting out of business or merging trying to defend their turf.  Their challenge is change.  A shift in technology over a decade or two is not dramatic for a company in touch with reality.  So why are so many airline companies struggeling?

Labour agreements or ownership structures that does not allow for necessary adaptation to shifts in technology.   In the airline industry, these structures with lack of flexibility has been a gift to companies like Virgin, RyanAir, Gol and Norwegian to name a few.

Shifts in technology has also brought change to you and me.  Previously I have talked about the many features within Google.  Today let me talk about Skype.  Skype is on of many IP phone approaches that offer a substantial cut in your communication bill if explored wisely.

With Skype and similar products entering the market, telephone companies had to turn around and adapt fast;  In their pricing, their product offering, technological platform and cost structure.  Basically their whole business model needed re-design. 

For SMBs, we got a tool that enable global communication at affordable rates – often free of charge.  For very little money, we get additional features closing the gap to conventional phone subsrcription.  But Skype is so much more;

  • Chatting – short text messaging PC to PC
  • File transfer 
  • Conference call
  • Video call
  • etc.

 This is another of Friedman’s factors making the world flat – and speeding up globalization.  It is for us to use it and explore the possibilities that lies within it.

Anders, from Lillestrøm, Norway as spring approaches.  Copyright 2010 Anders Haug Thomassen.