Competitive Advantage in the Airline Industry
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Competitive advantage refers to a condition in which a business is operated in ways that make it better than other competitors in the business world. In the market, businesses have to acquire their certain share of market by finding ways of attracting their customers (Barney, 1997). Businesses have to adopt methods that make the businesses stand out to be best amongst other competitors. Therefore, businesses have to formulate competitive advantage that will make it the best among the choices in the customer’s mind. This normally occurs in a competitive marketplace where customers have to many choices to make. Commercial airline is considered to be a highly competitive marketplace basing on the services provided to the customers. This necessitates the need to have business strategies that will offer a business a competitive advantage.
In the commercial airline industry, customers are critical to the operation of the business. This means, businesses have to formulate ways of serving them in the best way possible. In this regard, the airline enterprise has employed the utilization of information technology to win and keep loyal customers (Miller & Chen, 1994). This is aimed at operating more efficiently in the reservations, maintenance and operations department. This has played a critical role in attracting clients from all parts of the world. The commercial airline industry is trying many ways of obtaining and developing a competitive advantage. This is because it is the strategic goal which the industry is aiming to attain in light of the current competitive challenges. The competitive challenges involve attracting as many clients as possible. The continuous technological innovation and the fierce competition between the components of the airline sector have contributed to the emergence of enhanced development in the airline industry.
The utilization of the information technology in the airline industry has enabled the customers to access a very efficient operations in the airline industry. It has enabled the industry to be highly competitive and the best airline will only be attained through the best services that may be offered. This has brought positive impact to the industry because it has led to the increased number of customers clinging to any airline that offers the best services. It has brought positive impacts due to the expanded operations in all parts of the world with the purpose of serving all the business travelers.
Information technology has positively affected the airline industry to a great extent in various aspects like Airline reservations, air-craft design, e-ticketing, security check, flight and airport management and control (Ives & Learmonth, 1984). E-ticketing is mainly aimed at serving customers worldwide so as to offer them services they need at their convenient places and time. Flight and airport management and planning includes flight information display systems, airport operational database systems, air traffic control, staff management displays, invoicing and ledger systems. It has proved to be the best tool to be employed in providing efficient operations that make them more competitive. Also, as information technology has enabled the development of radio frequency identification technique that has been used to resolve lost luggage issues.
In conclusion, airline industry is highly competitive in terms of service provision. Use of information technology has been successful in providing a competitive advantage to the industry. This is because it has enabled its customers to access the most efficient services by serving them more conveniently wherever they are in all parts of the world.
Barney, J. B. (1997). Gaining and sustaining competitive advantage (pp. 134-175). Reading, MA: Addison-Wesley.
Ives, B., & Learmonth, G. P. (1984). The information system as a competitive weapon. Communications of the ACM, 27(12), 1193-1201.
Miller, D., & Chen, M. J. (1994). Sources and consequences of competitive inertia: A study of the US airline industry. Administrative science quarterly, 1-23.