{"id":27,"date":"2013-10-08T04:17:37","date_gmt":"2013-10-08T11:17:37","guid":{"rendered":"https:\/\/blogs.ubc.ca\/vickychen\/?p=27"},"modified":"2013-10-08T04:30:00","modified_gmt":"2013-10-08T11:30:00","slug":"a-smart-tradeoff","status":"publish","type":"post","link":"https:\/\/blogs.ubc.ca\/vickychen\/2013\/10\/08\/a-smart-tradeoff\/","title":{"rendered":"A Smart Tradeoff"},"content":{"rendered":"

In many business decisions, there are tradeoffs. Sacrifice is always needed to make a breakthrough or to undergo significant transformation. In 2013, Japan Airline ordered 31 long-haul jets Airbus, a European aircraft manufacturing company, after years of being Boeing\u2019s exclusive customer. It was definitely not a easy decision to make. Because of the loss of loyalty, Japan Airlines will no longer receive any \u201cpreferential treatment\u201d including discounts and creative packages from the Boeing Company. In addition, it was a costly decision. Switching planes cost JAL large amount of capitals for ongoing maintenance and trainings since the Airbus pilots and mechanics are also included in the \u201cplane package\u201d.<\/p>\n

Even though this new plan took a toll on the company\u2019s physical asset, the potential profit JAL may gain considerable. Undoubtedly, this switching action rebuilds customers\u2019 trust and confidence in JAL. The electric system problems Boeing 787 has that caused several accidences blemished JAL\u2019s reputation and aroused enormous safety concerns. Suspending Boeing 787 and finding an alternative is their best way to keep customers. Most importantly, the newly formed collaboration with Airbus gave JAL more buyer power, greater flexibility, and a more favorable position on negotiation tables.<\/p>\n

In this case, JAL trade a considerable number of cash for a future potential growth and more buyer power. Because of the company\u2019s intelligent weighing of gain and loss, it successfully survived from the trust crisis and vigorously moved to the next chapter.<\/p>\n

http:\/\/www.businessweek.com\/articles\/2013-10-07\/how-japan-air-lines-flexed-its-negotiating-muscles#r=most%20popular<\/p>\n

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In many business decisions, there are tradeoffs. Sacrifice is always needed to make a breakthrough or to undergo significant transformation. In 2013, Japan Airline ordered 31 long-haul jets Airbus, a European aircraft manufacturing company, after years of being Boeing\u2019s exclusive … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":20559,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-27","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blogs.ubc.ca\/vickychen\/wp-json\/wp\/v2\/posts\/27","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.ubc.ca\/vickychen\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.ubc.ca\/vickychen\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.ubc.ca\/vickychen\/wp-json\/wp\/v2\/users\/20559"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.ubc.ca\/vickychen\/wp-json\/wp\/v2\/comments?post=27"}],"version-history":[{"count":9,"href":"https:\/\/blogs.ubc.ca\/vickychen\/wp-json\/wp\/v2\/posts\/27\/revisions"}],"predecessor-version":[{"id":37,"href":"https:\/\/blogs.ubc.ca\/vickychen\/wp-json\/wp\/v2\/posts\/27\/revisions\/37"}],"wp:attachment":[{"href":"https:\/\/blogs.ubc.ca\/vickychen\/wp-json\/wp\/v2\/media?parent=27"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.ubc.ca\/vickychen\/wp-json\/wp\/v2\/categories?post=27"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.ubc.ca\/vickychen\/wp-json\/wp\/v2\/tags?post=27"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}