Airline Sustainable Competitive Advantage

1439 WordsJul 8, 20186 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…show more content…
An airline should be looking at ways to further increase differentiation, which intern affects an airlines competitive advantage. Emirates airlines has been successful in implementing a competitive advantage and consequently based a successful competitive strategy upon it. Emirates have been successful in implementing the minimal labour cost, young fleet, non-unionised, government support, wide-body air for improved cargo capacity, opportunistic strategies, and most importantly, the hub based model (Namaki, 2007). The outstanding advantage is the airline hub based model; because of the central geographical location to the world and “within an eight-hour flight of more than half the world’s population” (Wharton Unicersity of Pennsylvania, 2007). This includes increase in city pair coverage through spoke-hub system, (Cento, 2009). Emirates have been accused of using the six freedom via the Dubai hub, which enables more customers to bypass and embezzlement of alternative airlines flying the same route, although Emirates denies these allegations (Emirates, 2012). The hub enables the airline an advantage in only one location for all airline needs, such as maintenance. Emirates is targeting a particular segment target customer of low cost with high luxury, with also the target of high end luxury first class offered. As Dubai has minerals of fuel, Emirates ha also accused by competitors of competitive advantage of fuel subsidies and minimal airport user
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