Airline Sustainable Competitive Advantage Essay

1809 words - 7 pages

Porter stated; “for an airline to succeed in the marketplace, it must have a sustainable competitive advantage” (Porter M. E., 2008). The airline industry is the highest competitive industry, and I believe a sustainable completive advantage is essential to succeed in the future of the aviation industry. The competitive advantages that an airline embrace, needs to be based on the airlines strategy and differentiation to competitors. Emirates displays how it has a strategy and how the airline gets ahead of its competitors through how unique it is.

A sustainable competitive advantage is making your company have a unique value position, in a competitive environment, while defending the supported proposition. These advantages need to be constantly updated in order that the competitors remain on the back foot. Unable to keep abreast of the shifting advantages and the difficulty to imitate or implement changes that take place. Such properties of sustainable competitive advantages that can be changed, include;

• Customer interaction
• Knowledge
• Fleet efficiency
• Turnaround times
• Contracted flight paths with government
• Time and price elasticity
• Airport grandfather rights and airport-airline relationship
• Service contracts
• Brand awareness
• Social media
• Advertising
• Loyalty programmes/Alliances
• Short term influence on customer behaviour
• Airline hub model
• Fuel costs
• Technology enhancements
• Safety record
• Cooperate culture in relation to wages, loyalty and productivity
• Load factors
• Expansion with class of population

When an airline does not have a sustainable competitive advantage, it does not have any properties of differences from there competitor and turns to a dangerous price war. The sustainable competitive advantage (changes) needs to be representative of the company’s strategy. The employees need to be on board with these, understanding what the company is trying to achieve and what defines the differences from the airline competitors. For the employees to understand to achieve an effective business strategy, they need to jointly relate to the corporate culture. The airlines strategy also needs to reflect their aim in value proposition through customers with price, service, and comfort. An example is Pam Am, which did not have a sustainable competitive advantage as competitors copied there advantages along with buying essential flight paths rights (McCarthy, 2003).
Southwest has a unique competitive advantage, as its uniqueness is based on cooperate culture. Most importantly is it increases corporate productivity over a period of time through culture (Denison, 1984). All employees understand what the company is wishing to achieve to its customers. Southwest to this date still has the fastest turnaround time with minimal cost increase due to the culture of the airline of all staff helping each other, including pilots. Although its strategy is low cost, it does give a high standard to customers through their...

Find Another Essay On Airline Sustainable Competitive Advantage

Qantas PESTLE Porters Five Forces Essay

2344 words - 9 pages through mergers, acquisitions and subsidiaries. Qantas established it's low-cost airline Jetstar in 2003 creating a two-brand strategy. By having these "two brands" the Qantas Group is able to assess different market opportunities and deploy the best product to suit the opportunity and specific market conditions this also creates a competitive advantage. New rivals have emerged following the footsteps of Qantas, such as Singapore Airlines and

Company Profile for Strategic analysis - Ohio University - Essay

1198 words - 5 pages Southwest, Delta, American airlines etc. Like any other airline organization, JetBlue goal is to maximize its profit in the competitive airlines market. To be able to maximize its profit, JetBlue must have competitive advantage of its competitors that is attained through the development and deployment of resources and capabilities (Grant, R. M , 2016). The resources which are the productive assets owned by the firm and capabilities are what the firm can

Opportunities and Threats facing the U.S Airline Industry

1560 words - 6 pages . •     Efficient and innovative culture foster by the management Southwest has a sustainable competitive advantage as long as the company creates unique value to the customer through its low-cost/differentiated strategy. To sustain the competitive advantage, it is imperative that the company constantly monitors its external environment as described by Porter’s five forces framework and take necessary action to adapt and sustain its competitive posture

Introduction of Southwest Airline

6930 words - 28 pages the resource to display each of the four characteristics as possible as it can to achieve the sustainable competitive advantage. In terms of Southwest Airline, there are many resources can contribute its competitive advantages, however, for the sustainable competitive advantages, these resources can fit the RBV and VRIN model-successful organizational culture, unique working process, quality human resources and strong reputation.2.1 Unique

Sky High Strategies - From: Corporate Strategy, Richard Lynch Page 23

1008 words - 4 pages ? Because it is the whole "game plan" or "battle order" if this is flawed then the corporation will fail.Question 2Using the concept of the three major stages of corporate strategy, identify the possible main elements that might appear in a strategic plan for a low cost airline?Question 3What sustainable competitive advantage do the main European airlines possess?Strategically a sustainable competitive advantage is to have a strategic resource

Analysis for Airline Industry

7701 words - 31 pages yield management gains the competitive advantage. This results in a better fare mix of traffic and especially, protects sets for late-booking, high-fare passenger. More interesting was the finding that the airline with yield management system is able to dump unwanted low-fare passengers onto the flights of the last-minute seat availability for the highest-fare passager.8. Porter Model for Airline Industry8.1 Industrial CompetitionA firm's competitive

Qantas

4022 words - 16 pages bigger portion of the market. Industries that are very competitive generally earn lower profits and returns since the cost of competition is high. The airline companies are always in a constant struggle to take away the market share from each other. And because it is easy for buyers to switch between airline companies, the rivalry is increased. For Qantas to have a better competitive advantage, it needs to continually improve its pricing

Air Asia

2334 words - 10 pages enjoying a healthy sustainable competition advantage in LCC industry. Focusing to right target class of society i.e. medium scale Air Asia has strategically implement the LCC Airline to earn huge number of travels. ‘’low income market presents a prodigious opportunity for the world’s wealthiest companies to seek their fortunes and bring prosperity to the aspiring poor.’’ (Prahalad, 2002 (Prahalad, C.K, Hart, L.S (2002) The Fortune at the Bottom of the Pyramid, Strategy +Business, 26 pp1-14) Corporate Strategy Option Ansoff Matrix, with context to Air Asia looks in the growth and expansion of the company

The Airline Industry

1551 words - 6 pages losses. The main components of demand for airline services are business travelers, tourism, freight transport, and mail transport.Flight schedules tend to be the crucial competitive issues for business travelers, while tourists and personal travel is much more price sensitive.Airline 4Freight and mail services account for about 15% of airlines total overall revenue, while international freight and mail is closer to one-third of airlines

The Structure of the Airline Industry

2577 words - 10 pages airlines, and to other kinds of operators, for instance, air cargo space to freight forwarders & maintenance services to military sector in pursuit of higher profits. Competitive advantage will go to the airline that can respond quickly and decisively to increase pressure to restructure, consolidate and segment the industry.As the competition in the airline business intensified, traditional carriers have to pursue strategies to spur growth, trim

Competitive Strategy Southwest Airlines

2059 words - 8 pages The domestic US airline industry has been intensely competitive since it wasderegulated in 1978. In a regulated environment, most of the cost increases werepassed along to consumers under a fixed rate-of-return based pricing scheme. Thisallowed labor unions to acquire a lot of power and workers at the major incumbentcarriers were overpaid.After deregulation, the incumbent carriers felt the most pain, and the floodgates hadopened for newer more

Similar Essays

Scope For Competitive Advantage: Australian Airline Industry

613 words - 2 pages Scope for competitive advantage within Australian airline industry can be broadly classified as follows.Service: Apart from fulfilling the basic task of transporting people and their luggage between two or more points, the airline must decide which additional services create value for the customer and add to their bottom line. This is one of the most important factors that create scope for competitive advantage. An airline basically can make use

Airline Technology: The Technologies That Can Help Creating A Competitive Advantage For Companies.(With In Text Reference)

1141 words - 5 pages The use of cell phones on planes, access to the internet, 23 inch LCD screens, personal music and video iPod entertainment...the airline industry is definitely using technology to its advantage to provide customer satisfaction.For me, five years ago, air travel was synonymous with boredom and fatigue. I considered it to be a tedious task. I disliked spending long hours on a single plane journey.But today, things have drastically changed

Competitive Advantage And Its Application Within The Aviation Industry

1689 words - 7 pages service and aims to provide passengers with the best (Heracleous, Wirtz, & Johnston, 2004). Consequently, SIA earns customer loyalty and attracts more passenger demand thus allowing SIA to capitalise on its competitive advantage of superior quality customer service. According to Flouris and Oswald (2006) it is immensely difficult for airline sot compete without a sustainable advantage. In order for an airline to succeed it has to have a

Aer Lingus: Buying Behaviour And Target Marketing, The Extended Service Marketing Mix. Creating A Competitive Advantage Market Research

924 words - 4 pages the creation of a total travel experience with emphasis on service and quality. With the combination of the Programme for a Better Airline and Aer Lingus's Brand values, they have managed to set their product apart from the other airlines.Creating a competitive advantageHow has the airline defined its differential advantage?Aer Lingus has not only differentiated themselves through their brad values, but they have the added asset of their Irishness