SAS “new” business model David Sörhammar Uppsala University Department of Business Studies Sweden
[email protected] Anna Bengtson Uppsala University Keywords: dynamics, market change, marketing practice, SAS. Abstract In September 2005 SAS introduced a new business model. Where did the model come from and what influenced it? This paper’s focus is on the making of the model where we study the making of a business model as a dynamic process through time. In concrete terms, traces of today’s model can be found and examined from the SAS group’s embryonic attempts starting in 1946, through the financially good years during the 1980s, to the market re-regulation in contemporary time. During these years several changes have taken part both on the larger air travel market and in SAS´s market practice. We have separated SAS´s history into three era’s, the technological era, the businessman’s airlines era, and the “to serve Europe with air travel” era. Elaborating on the theoretical notion of mutuality between markets and market practice (Cf. Helgesson et. al., 2004), the impact of these practices and of the market infra structure at different points in time are described and their importance for the emergence of the business model discussed. Our findings show that the political efforts to de-regulate the European air travel markets did not automatically change all market practices and thus not the market. The process that followed the de-regulation can better be characterised as a translation process in which a changed market was created, based on an already established network of embedded material and immaterial items, such as booking systems, airplanes and perceptive frames, that had to be taken into consideration.