East Star Group's Vertical Integration Strategy and Bankruptcy of the East Star Airlines

摘要

In 2009, China's first private airline—East Star Airlines was forced to ground and went bankruptcy finally after the reorganization failure. Some people say that this is "suffering the financial crisis"; Some people say that it was the result of contest between private airlines the state-owned airlines; some say that this is due to the chaotic internal management in the East Star Airlines. This paper analyzes the reasons for the failure of East Star Airlines from the strategic management perspective of tourism enterprises. According to the article, blind vertical integration strategy is the main reason for East Star Airlines bankruptcy.