AN ANALYSIS OF THE F0RCES THAT DETERMINE THE COMPETITIVE INTENSITY IN THE AIRLINE INDUSTRY AND THE IMPLICATIONS FOR STRATEGY
Journal Title: International Journal of Physical and Social Sciences (IJPSS) - Year 2012, Vol 2, Issue 9
Abstract
The research analyzes the dynamic forces of competition and demonstrates that competition embodies the fact that it can appropriate value, and that management of the competitive tensions is central to strategy. The paper also demonstrates that the level of intensity in the industry is determined by basic competitive forces and through the organization‟s choice of strategy it can alter the impact of these forces to its advantage. Central to the paper is a series of realist appraisal of what is right and wrong with current industry thinking and practices. The research investigates, through a questionnaire, the why and how of decision making in the airline industry given the competitive environment of this industry. Data was coded into themes, ideas, topics and key words leading to an analysis which attempts to show that the two sides of competition create an interesting tension, the intensity and balance of which has major, often surprising implications for strategy. Despite the intensity of the airline industry rivalry, this research proves that an airline has latitude to influence rivalry through its choice of strategy. The results show that the airline business is dynamic and complex. Therefore effective strategy is separable from execution and is based on a match between capabilities and activities. The ability to anticipate and be innovative is a critical core competence. The net result of this rivalry and intense competition in the airline industry reflects in an overall slow market growth, margins driven down to unattractive levels and competitors chasing the same flighty customers.
Authors and Affiliations
Dr Stephen Nhuta
Keywords
Related Articles
- EP ID EP41775
- DOI -
- Views 363
- Downloads 0
Computer-based versus Traditional L1 and L2 Glosses
This study aimed at investigating the effects of L1 and L2 glosses and their effectiveness on reading comprehension and vocabulary recall with and without computer to explore whether providing glosses can facilitate re...
The Leadership and the Retention of Employees That Work for Nongovernmental Organization (NGOs) in Thailand
Leadership is a key success factor in the success in managing of any organizations including nongovernmental organizations (NGOs). Most Thailand’ s NGOs focus on community services which related to women rights, educat...
THE EFFECT OF USING ICT FOR IMPROVING LEARNING ENVIRONMENT IN SCIENCE TEACHING
The focus of this paper is to examine the effect of using an ICT to both increase academic support to students, and to teaching skills. Science is one of the most fundamental natural subject which involve the study of...
Global Financial Crisis and Efficiency in Foreign Exchange Markets
This article inspects the efficiency of the foreign exchange market after the global financial crisis of 2007-08. A BDS independence test was applied to the returns of weekly exchange rates of the Euro, the Australian...
Scientific Creativity and Multiple Intelligence of Secondary School Pupils of Kerala
Scientific Creativity is an important concept in the context of the emerging need for solutions of different scientific problems. The world is challengingly facing many environmental threats which demands scientific so...