Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 63 views

    Competition in The Airlines Industry

    Uploaded by

    El
    The document discusses competition in the airline industry. It notes that the environment is the most important factor for airline performance due to regulations. Airlines try to differentiate themselves through on-time performance and lost baggage rates. The industrial organization model says airlines should study the environment, select attractive strategies, develop needed skills, and implement strategies to achieve above average returns. Regulations lead to imitation among airlines on amenities like Wi-Fi and food options, making it difficult to stand out, though safety and customer loyalty can provide advantages over time. The resource-based model also explains performance, suggesting airlines focus on internal strengths and competitive advantages to provide more value at lower costs. Strategic leaders need to focus on creating consumer value through service quality

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Competition in The Airlines Industry

    Uploaded by

    El
    63 views2 pages
    The document discusses competition in the airline industry. It notes that the environment is the most important factor for airline performance due to regulations. Airlines try to differentiate themselves through on-time performance and lost baggage rates. The industrial organization model says airlines should study the environment, select attractive strategies, develop needed skills, and implement strategies to achieve above average returns. Regulations lead to imitation among airlines on amenities like Wi-Fi and food options, making it difficult to stand out, though safety and customer loyalty can provide advantages over time. The resource-based model also explains performance, suggesting airlines focus on internal strengths and competitive advantages to provide more value at lower costs. Strategic leaders need to focus on creating consumer value through service quality

    Original Title

    Competition in the Airlines Industry

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses competition in the airline industry. It notes that the environment is the most important factor for airline performance due to regulations. Airlines try to differentiate themselves through on-time performance and lost baggage rates. The industrial organization model says airlines should study the environment, select attractive strategies, develop needed skills, and implement strategies to achieve above average returns. Regulations lead to imitation among airlines on amenities like Wi-Fi and food options, making it difficult to stand out, though safety and customer loyalty can provide advantages over time. The resource-based model also explains performance, suggesting airlines focus on internal strengths and competitive advantages to provide more value at lower costs. Strategic leaders need to focus on creating consumer value through service quality

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    63 views2 pages

    Competition in The Airlines Industry

    Uploaded by

    El
    The document discusses competition in the airline industry. It notes that the environment is the most important factor for airline performance due to regulations. Airlines try to differentiate themselves through on-time performance and lost baggage rates. The industrial organization model says airlines should study the environment, select attractive strategies, develop needed skills, and implement strategies to achieve above average returns. Regulations lead to imitation among airlines on amenities like Wi-Fi and food options, making it difficult to stand out, though safety and customer loyalty can provide advantages over time. The resource-based model also explains performance, suggesting airlines focus on internal strengths and competitive advantages to provide more value at lower costs. Strategic leaders need to focus on creating consumer value through service quality

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Competition in the Airlines Industry

    1. The environment is very important to the performance of airlines in the airline industry, it
    may be the most important factor. Thanks to strict regulations, this industry is highly
    dependent upon external factors to make profits such as fuel prices, mobile resources,
    profitable routes, government regulations, and more. Even though partial deregulation
    took place around 30 years ago, many of the important differential points remained
    constant, hence giving the same standardized services to all consumers. Airlines can try
    and differentiate themselves with having less delayed and cancelled flights, and fewer
    lost bags.

    The Industrial Organization Model concentrates on opportunities present in the industry.


    The I/O Model says that to have above average returns, a company needs to study the
    external environment, choose an attractive area, select strategies, develop assets and skills
    needed, and lastly, implement the strategy. Therefore, airlines should look for areas that
    may be attractive in the upcoming future for the chance to implement their strategies, and
    receive above average returns.

    2. The reason there’s a lot of imitation in the airlines industry has to do with regulations
    because of the nature of air travel. Even though it is the safest way of travel, once a plane
    that has 300 passengers is in flight, nothing can happen to that plane. Even the slightest
    mechanical problem can put the lives of the passengers on the life in a matter of seconds.
    If there aren’t regulations, firms competing to make more profits could unfortunately lead
    to the overlooking of quality travel, as well as safety.

    Wi-fi services provided, similar routes, snack and beverage options, arrival and departure
    times are just a few of the imitations we see today. These imitations affect firm
    performance by making it difficult to stand out amongst the other firms. Although firms
    may have difficulty in making more money than their competitors, airlines can achieve
    the trust of their consumers. Later on down the road that consumer may join their
    rewards program because of how safe they feel flying that airline. These strict
    regulations are great because if they weren’t in place and an airline’s plane crashed, that
    could destroy their reputation completely.

    3. The resource-based model is very important to explain how well firms perform in the
    airlines industry because the environment makes it very difficult to create new and/or
    different services. It has an internal perspective to explain how a firm's unique
    specialization or collection of internal resources and capabilities represent their
    foundation. It also suggests that in order for a firm to make above-average returns, they
    should focus on their strengths, or competitive advantages. The competitive advantage is
    “A superiority gained by an organization when it can provide the same value as its
    competitors but at a lower price, or can charge higher prices by providing greater value
    through differentiation. Competitive advantage results from matching core competencies
    to the opportunities.”

    4. Strategic leaders can be successful in an industry like the airlines industry with a few
    guidelines. First, they need to focus on creating value for their consumers. These leaders
    need to make a decision whether they should operate as a low-cost airline or an airline
    that specializes in high-end travel. Considering the several external factors that are
    completely out of their control, strategic leaders should focus on internal factors; what
    they DO have control over. Invest in creating and providing better customer service,
    cancellation guidelines, creating maybe a rewards program to encourage the growth of
    loyal passengers, and more. Each of those components can help an airline stand out more
    than one might think.

    You might also like