Airline Sustainable Competitive Advantage

The targeting strategy that Delta Airlines follows is a Single Segment Strategy. Business fliers are the main target for this airline. In order to reach their target market, Delta Airlines is conveying its message that it delivers everything business fliers need through advertising in broadcast media and other national media. A differentiation strategy is the extensive flight service and brand legacy of Delta Airlines is recognized throughout the airline industry as unique. There are several benefits of Single Segment Marketing. The company can gain more competitive edge. Their major competitors are United Airlines, Northwest Airlines, American Airlines, and British Airways. Also, the company can create more fine-tuned offerings at the right price for the specific market segments as well as have a clear picture of the

This report will be discussing strategic management to a company in the airline industry. This report will examine a chosen company’s strategic management and outline the stages. Strategic management is analyzing the situation facing the firm, also on the foundation of analysis formulating a strategy and lastly implementing strategy. Strategic management is the identification and the description of strategies that can be used by managers so as to attain better

The perception of sustainable competitive advantage is a complicated term as it is not easy to make a clear definition about at what level the firm can be seen as sustainable (Oliver, 2000). To fully understand the concept of sustainable competitive advantage, it is better to break this phrase into two separately parts including sustainable and competitive advantage (White, Moraschinelli 2009). The first word “sustainable” is understood as how long the firm can maintain their position in the market as well as develop themselves at a constant speed, in other words, the company can attain success in long-run.

Further Emirates had the aspiration of becoming an international airline brand name from the airline establishment. The initial step of Emirates airline it made Emirates to connect with international airline services and start up to marketing the brand, serve worldwide. Even the Emirates airlines Employees had the vision and cultivated the mentality to build the Emirates brand internationally. All These motivational aspects made the pathways to the emirates airlines for rapid development and wide spreading on the routes.

Competitive advantage is a business concept describing attributes that may help an enterprise to pick off its competitors. Every enterprise has its own competitive advantages include natural resources, skilled person, high entry barriers and so on. With the full use of these competitive advantages, the company can offers their clients better services as well as focus on the target market. This is the main reason behind brand loyalty. It can be seen that knowledge assets of the company offer most of competitive advantages. Thus, if Southwest Airlines can treat its knowledge assets as unique resources and explore the business potential in each knowledge asset, they may establish appropriate strategy and more likely to get a higher level than other companies in the same industry as well as dominate the market.

American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.

The domestic airline industry transports 711 million souls a year. That translates into a staggering $709 billion a year revenue flow (statista.com). One firm, named Southwest Airlines, accounts for 18.3 percent of that market. That 18.3 percent market share places Southwest at the number two spot, behind American Airlines. How does Southwest Airlines successfully compete and thrive in this environment? How do they differentiate themselves from the hoards of legacy carriers? Southwest Airlines encapsulates its strategy in a simple statement: “Meet customers’ short-haul travel needs at fares competitive with the cost of automobile travel (Grant, p.23). As a pioneer in low cost air travel, Southwest has successfully brought down airfares through its short route point-to-point business model, “no-frills” service, single flight strategy, and highly productive employees (Cederholm, 2014). In the following analysis we will investigate Southwest Airlines standing within the industry as a whole and their differentiation models driving success. We will also identify the firm’s competitive advantages as they relate to similar firms in the industry.

Although the company has been able to gain a competitive advantage by distinguishing themselves from the competition, it still remains a difficult industry to compete in. Because the competition is very high it is simple for customers to look elsewhere for a better deal. The product is air travel and there are many competitors offering the same destinations. Airfares and rates vary and the competitors are always pushing to lower rates in order to fill empty seats and ensure profits.

With the majority of American Airlines competitors in domestic industry, it is crucial for them to keep up to date with the latest business strategies their competitors are integrating in to their businesses. Depending on what strategy American Airlines Company decides on, it needs to be differentiated compared to their competitors in order to succeed in this airline industry.

Yes, sustainable is a factor this help keep company protected through their earning power from there competitive. Consequently, when company has long-term success sustainable emerged it company competitive advantage, through the different type of strategies that maybe use to achieve its success. Forward more, marketing plays significant part in company model this can be achieve through network communication and discuss product and sell to build company model with customer

In ‘Competitive Strategy’ Porter introduced the concept of generic strategies – differentiation, cost leadership and focus (Harvard Business Review, 2011). Using these possible alternative strategic positions to analyse AA and AWE, they clearly fall under the focus strategy; neither was a cost leader in their field, nor did they differentiate their product significantly from other Legacy competitors. They both targeted their business model at the whole market of airline travelers, catering to all classes of the market and delivering a similar product.

Competitive Advantage can be described when an individual firm or company has a higher profit rate than the average for its industry. Developing this theory, a firm or organisation achieves a sustained competitive advantage when it is able to maintain this high profit rate over a number of years (Hill; Jones 1998).

In terms of cost efficiency Emirates has proven to be the best cost performer in aviation industry. They maintain a strong network of partners around the world. It procures cheap human resource from India and Pakistan for ground handling, maintenance, and catering also it's provides ground handling services to 100 airliners at Dubai airport. Labour law in UAE forbidding strike and trade union which favours Emirates 73% less costly compare to other airliners in Europe.

The success of Emirates can be attributed through a combination of marketing mix which emphasize on excellent customer service, product and equipment. In addition, Emirates is known for its commitment to the highest standards of quality in every aspect of their business, providing premium service be it in first, business or economy class. We will look into a few P’s of the marketing mix that Emirates currently employ to become one of the most profitable

A company achieves sustainable competitive advantage when an attractive number of buyers prefer its products or services over the offerings of competitors and when the basis for this preference is durable.