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 345
- Downloads 0
INFLUENCE OF PRINCIPALS’ SUPERVISION PRACTICES ON STUDENTS’ PERFORMANCE IN KENYA CERTIFICATE OF SECONDARY EDUCATION (KCSE) EXAMINATIONS IN KISUMU CENTRAL SUB-COUNTY, KENYA
The purpose of the study was to investigate the influence of Principals’ supervision practices on academic performance in secondary schools in Kisumu central Sub County, Kenya. The study was guided by the following res...
Role of Rural Market Centres in Make in India A Case Study OfBudni Block, Dist. Sehore.
Rural market centres are settlements which provide services for the population of their hinterlands along with their own population. They provide services to the consumers living around. Apart from agricultural produc...
Civil War in Sierra Leone (West Africa) and the Role of International Community and India in Peace Building
The decade long civil war in Sierra Leone since 1991 has destroyed the whole nation and the lives of lakhs of people. Other several lakhs of people had to leave the country and become refugees. It is an example how a p...
A Paradox on Corporate Social Responsibility - Case Study on Coca Cola
World Business Council for Sustainable Development defines Corporate Social Responsibility (CSR) as "The continuing commitment by business to behave ethically and contribute to economic development while improving the...
INFLUENCE OF PROVISION OF OFSP VINES TO PREGNANT WOMEN ON COMPLETION OF ANC VISITS IN HEALTH FACILITIES IN RACHUONYO SOUTH SUBCOUNTY, KENYA
Rural women do not seriously consider antenatal care yet it is a prerequisite for safe motherhood. In anticipation of encouraging ANC practice among the pregnant women, most healthcare facilities in Rachuonyo South sub...