Airline Competitive Advantage

Airline Competitive Advantage During turbulent 1970s and early part of 1980s, marketing was a comparatively unimportant activity among airline companies around the world due to stringent industry regulation and the industry was operating in a sellers market conditions around the globe. In particular, protected by government ownership and regulation, airlines were safe from serious competitive effects of the marketplace. In most cases, the industry showed an oligopolistic market structure. For instance, price competition was nonexistent, promotional efforts were limited, product service quality was uneven, and little had been done to develop efficient distribution systems through hub and spoke networks Borenstein 1989. In a market which was dominated by airlines themselves the motto was if you offer flights from one destination to another, people will take them. There is substantial anecdotal evidence that an airline with a dominant share of the traffic at an airport has a competitive advantage on routes that incl ude that airport. In this approach, consumers needs and wants, their expectations did not have any meaning. In recent years, there have been a number of changes in global airlines industry which have had profound effects on the development of this very volatile sector of the economy in most countries of the world. Pustay 1992Demographic, legal-political, socio-economic and technological changes have led the way to transformation of the airline and the way they do business domestically as well as internationally. In this rapid re-structuring process, both national as well as private airlines had to modify their marketing and business policies and strategies. In particular, the emergence of consumer-oriented marketing approach was evident. The essence of the marketing concept incorporates three basic elements of customer-orientation, integrated marketing efforts and the resultant company profitability and customer satisfaction. In this process, continuous relationship between airlines and their customers has become the watchword and airline industry standard. Definition of Competitive Advantage and Strategic Thinking A competitive advantage is a medium or long-term factor that works in favour organisation or at least, a restricted number of airline industries. Competitive advantages in airline are usually facets which are costly and time consuming for others to develop so that the entry price is high. Typical competitive advantages are cost leadership, technological superiority and uniqueness. Positioning Airline Company The first approach takes the structure of the industry as given and matches the company. Strength and weaknesses to it competitive advantage can be viewed as a building defence against the competitive force or as finding position in the industry where the force are weakest. Knowledge of the airline industry capabilities and of course of the competitive force will highlight the areas where the airline industry should confront competitive and where avoid it. When dealing with the industry force that drive industry competitive, company can devise a strategy that takes the offensive. This posture is designed to do more than merely cope with the forces themselves it is mean to alter their causes. Innovation cost in airline industry market can raise brand identification or otherwise differentiate the service and capital investment in airline at large scale facilities or vertical integration affects entry barriers. The forces he identifies are: Rivalry Among Existing Competitors Threat of Substitute customer relationship and Services Threat of New Entrants Bargaining Power of customers Bargaining Power of employees Exploiting Industry Change in Airline Company Airline industry evolution is important strategically because evolution, of cause, bright with it changes in the sources of competition in the familiar services in the life-cycle pattern, for example, growth rates changes, services differentiation is said to decline as the business becomes more mature and the company tend to integrate vertically. These trends are not so important in themselves, what is critical is whether they affect the sources of competition. Consider vertical integration in the maturing airline industry, extensive vertical integration both in servicing and in customer relationship development is taking place. This very significant trend is greatly raising economics of scale as well as the industry this is turn raising barriers to entry and may drive some smaller airline competitors out of the industry once growth level off. Oligopoly and Game theory in airline industry Taking two different airlines as an example, if either airlines decides on cutting their fares, there is tendency that it will affect the other, and if both airlines decide on cutting down their fares, they will both be affected and shift to a worst situation unless, there is increase in fare sales to a reasonable level. Using the names Ryan Air and British Airways respectively to represent two different airlines, If the Ryan airline decides to go for the best fare that maximises profit, it will affect the demand of the fares for the British Airways airline and vice-versa, and also they could also decide on going for the maximum of the minimum (MAXIMIN), tending to increase they profit. So therefore, both airlines tend to have effect on effect other. Recession could be an advantage or demerit to an economy and other firms. Some organisations might see recession as an advantage because it motivates the market to run effectively mostly during long-term. Taking Ryan jar airline as an example, the organisation seen recession as an advantage to them because, during recession competition within the airline industry is less, it causes brings down the cost of airlines. If there is high number of airlines, the lesser the information they get about each others performance being an advantage to the firms, and more likely output and prices will be at a competitive level (Wessel,W.J (2006)pg 433-434). An article laid out by Elowitt, K. (2009), British Airways is one the affected airlines in the economy, stating a 14% drop in the premium traffic domestically and worldwide during the previous year, causing the company to put on hold two or more of their biggest flights. How EU Encouraged the Expansion of low Cost Carriers Reduce congestion in the skies. The European Union constructed a single European sky thereby reducing congestion drastically. The EU has the power to do so because the congestion price is at their disposal and they can also develop strategies and alliances with other airports. A country aware or facing a congestion problem can also create secondary airport to divert segments of the main airports traffic. Air regulations. Rules were imposed into to erase or prevent monopolistic practices which were anti competitive that usually prevented competition to the detriment of consumers. Most importantly, the EU competition rules regaled mergers, state aid to producers are prohibited within certain conditions and finally rules about cartels that prohibited all inter-company agreements that usually restrict or prevent competition within the European Union was implemented. Five ways to airlines reduce cost Used of secondary airport. Paying lower airport charges by using cheaper airport is a means by which cost can be reduced. A similar example is the Debonair and easy jet that set them up in 1995 at Luton where they were given extremely favourable deals on airport charges and rentals. The low-cost is very attractive to smaller airport and as a result can demand extremely low lending and other fees. Increasing number of seats by removing galleys and reduce the seat pitch; By doing away with business class, by reducing the seat pitch that is the distance between seats, low-cost carriers can simply increase the number of seats available for sale on the aircraft. Low-cost carriers tend to also increase their number of seats by reducing the number of toilets and eliminating other spaces such as coat cupboard, and so on. Direct Flight. Low-cost carriers dont set up a network. Their connection is point to point with a high market potential especially for individual private or non-business travellers. The traditional carriers have their own hubs where passengers can switch planes, from European to intercontinental flights. High cost of sales of tickets online. By so doing, they do not pay agencies like the traditional airlines on the sale of tickets. A company spokesman said Ryan airline has around three quarters of its customers already checked online and predicted that passengers would welcome the initiative. Low operating cost: All cost is reduced to its minimal e.g. maintenance cost, air fares, wages etc. No hub services, short cleaning time, no air freight, thus giving rise to high resource productivity. Low-cost carrier in the Aviation Industry Low cost carriers made a great impact on the aviation market causing the competition amongst firms to increase. Low cost carriers also led to a large extension in the number and density of civil airports, thus, the number of passengers in the traditional airport did not reduce. Basically from the point of view, low cost carriers induced either an additional demand or won clients for the air traffic which might have travelled by other means. An interview showed that 59% of the clients or passengers of the low cost carriers are new and 37% changed from other airlines. From the new airlines statistics, 6% stated they would have used the train, 15% the car and 71% said they wouldnt have travelled at all if they wouldnt have been the low cost offer. Incumbent airlines have responded with small cut-price airlines of their own to maintain market share. Due to the impact of low cost airlines, traditional European airlines such as British airways and Lufthansa are experiencing increasing pressure from the growth of the LCC. The traditional airline responses have gone to the extent of reduction in labour cost, greater use of regional aircraft and a run-down of secondary hubs. The traditional airlines also made a lot of changes to their on-board service and a move to direct-sell bring these airlines closer to the low cost carrier product. At the end, the traditional airlines network strength is largely maintained, however, which appears a better strategy to them. The traditional airlines raised up an issue against the low cost airlines that there is unfair competition and abuse to monopoly power and the conclusion led the traditional airlines to be in better shape than their counterparts. Source of Competitive Advantage in Airline Industry Competitive cost advantage in airline industry is a constantly moving target for any company in any industry; the key is not to get stuck with a single simple notion of its source of advantage. The best competitors the most successful ones, know how to keep moving and always stay on the cutting edge. Today, time is a cutting edge among the airline. The ways bigger airline industry companies manage time airline industry in new customer relationship and introduction in flight schedule represent the most powerful new sources of competitive advantage. Though certain western company are pursuing this advantage airline industry experience and practice provide the most instructive example not because they are necessarily unique but because they best illustrate the evolutionary stage through which leading companies have advantage. What Determines cost Success or Failure in Airline Industry Competition The question of what determine the cost success or failure of airline firms competition may be the most fundamental question that strategic management poses. Success, for a strategically distinct business requires that a competitive advantage be created and sustained in airline industry. Competitive advantage yield an economic rent in other words it create a situation in which economic costs are exceeded by revenue generated. Cost may be less than those of competitors, or any combination of this advantage. Conclusions Company might be affected by cyclical effects, leading them to reduce travels of all kinds most by individuals, leading to reduction in demand but the growth remains on a positive side. Individuals travelling on higher fares tickets like first class might change to second class or a lower class. Other companies deciding on building higher cash flow either by introducing higher discounts on premium tickets so as to fill lapse or even to increase demand. According to Winston and Morrison (1989), if an airline exercises monopoly power, the services provided are likely to be reflected with higher prices for the same level of output.

Beatrice and Benedick in “Much Ado About Nothing” Essay

Dramatically, the two scenes in which the friends of Beatrice and Benedick deceive them into believing that the love of the other is whole-heartedly directed towards them, is very appealing, and on of the reasons for this is the dramatic effects. Shakespeare delves into the deeper and more continuous themes of the play in this scene, both through the language and the visual actions, and one of the themes explored is the emerging of true emotions from behind a mask. When Don Pedro, Leonato and Claudio enter, Benedick mocks â€Å"the Prince and Monsieur Love!† and hides â€Å"in the arbour†. As well as Benedick’s outward demonstration of the cynicism he has towards affectionate emotions being humorous for the audience, it also implies a deeper impact that the developing relationship of Claudio and Hero is having on him. The audience has learnt from Act 1 Scene 1 his seemingly obvious distaste for love, as Benedick proudly states that he would look pale â€Å"with anger, with sickness, or with hunger †¦ not with love†. This demonstrates that he considers it dull and inhibiting, and further that it makes a man a domestic creature, leaving him only to â€Å"sigh away Sundays†. Yet in the same scene, when Claudio tentatively requests Benedick’s opinion of Hero, he replies, â€Å"Do you question me as an honest man †¦ or would you have me speak after my custom, as being a professed tyrant to their sex?† Benedick utters this with a dismissive tone, and yet it implies that inwardly he struggles with the persona that initially he willingly created for himself, yet now is assumed by others. There is a slight vulnerability suggested through the way Benedick hints at a subconscious desire to experience love despite his tendency to scorn it, and Shakespeare uses this to allow his friends to manipulate and play upon his emotions. Don Pedro initiates the comical deception, asking whether the others have noticed â€Å"where Benedick hath hid himself†, and thus the gulling begins. The exploration of this theme is mirrored with the women and Beatrice’s  deception. Beatrice and Benedick are similar in several personality traits that they portray, perhaps indicating the suitability of their match, and Beatrice too struggles with the restrictions of adopting a contemptuous attitude to both love and Benedick. She claims that she would rather hear her â€Å"dog bark at a crow that a man swear he loves† her, and again although this is very convincing, there is a suggestion later on that this is not entirely honest. After the dramatic scorning of Hero by Claudio on their wedding day, Beatrice vehemently declares, â€Å"O that I were a man for his [Claudio’s] sake† and this is because she understands she cannot rebel against the traditional man-woman divide. This indicates that to compensate for this, her words have become her weapon, and therefore her sharp distaste for love may not be true. Another theme that Shakespeare develops in the gulling scenes is that of traditional values, and again this is both through language and actions. There is a clear gender division throughout the play as this reflects the way society was in the time of Shakespeare, and the most clear indication of this is the way that Benedick is deceived by men – Claudio, Leonato, and Don Pedro – and Beatrice is deceived by women – Ursula and Hero. This is a very symbolic, and is furthered by the use of different language. The men’s gulling scene is entirely written in prose, with the men using powerful and emotive imagery, for example, that of Beatrice loving Benedick with â€Å"an enraged affected† that â€Å"is past the infinite of thought†. As well as emphasising the masculinity of the scene, this also outlines the effect that flattery has on people. Claudio comments that he â€Å"never did think that lady would have loved any man†, and thought to the audience it is clear that this is spoken with an edge of humour, to Benedick it appears entirely serious as he is unaware of their knowledge of his presence. Therefore the frenzied and angry love that the men profess Beatrice must, in his opinion, be anything but false, and this Leonato confirms by saying. â€Å"Counterfeit?! There was never counterfeit of passion came so near the life  of passion as she discovers it.† The affect of this revelation is a subtle weave of both pity and obsequiousness. Benedick is astounded and immensely pleased, and he displays his clear pleasure in saying, â€Å"By this day, she’s a fair lady! I do spy some marks of love in her.† Yet on the other hand, when he declares that â€Å"it must be requited†, his tone implies that this is just as much a favour to Beatrice as to himself, and is merely trying to save her from the way â€Å"she falls, weeps, sobs, beats her heart, tears her hair, prays, curses†, as Claudio disclosed. The women’s scene is contrasting, as it is written in blank verse, which is far more poetic, and suggests a richness and value which symbolises the femininity of the characters. The imagery is far more delicate, as Hero talks of â€Å"honeysuckles, ripen’d by the sun†, and the â€Å"sweat bait† that they are laying for Beatrice. The latter image is particularly effective, as it suggests a beautiful reward at the end of their light-hearted deception, and steers away from the men’s use of particularly forceful language. The scene also differs slightly in a different employment of flattery. Whereas the men launched firstly into language that would relax Benedick and so encourage him to believe their supposed falsehoods, Hero, knowing Beatrice can hear her, calls her â€Å"disdainful†, â€Å"coy and wild† The ironic comedy played on Benedick in the previous scene is repeated here on Beatrice. Shakespeare ensures audience participation in the plot enacted by Hero and Ursula, while Beatrice is unaware of it. By indulging in the pretense that Beatrice is too scornful to accept Benedick, who is presented as both wise and noble, they produce the intended reverse effect. Beatrice decides she is in love with Benedick. Appearance and reality are constantly juggled to produce the desired effect. This appears to be the stock theme in most of Shakespeare’s comedies. The trio of Claudio, Leonato, and Don Pedro are extremely ingenious in  executing their plan, originally conceived by Don Pedro. Benedick automatically falls into the trap because of his great respect and trust for Leonato, whom he cannot believe guilty of such deception. Don Pedro’s conversation with his friends appeals greatly to Benedick’s self-love. That a lady of such an excellent nature as Beatrice should be attracted to him boosts his pride greatly. It increases his opinion of himself. His soliloquy gives ample proof of his thoughts and is one of the best examples of comic irony in the play. His views on marriage have all of a sudden undergone a drastic change. â€Å"The world must be peopled,† he emphasizes. There is a great deal of audience participation in this scene. The supposed plot gives an additional role to the audience in that its members share in the inside story–the fooling of Benedick. The irony lies in the fact that the plotters know that Benedick is listening to them. Benedick does not ‘note’ that the conspirators know his hiding place while the audience ‘notes’ both deceptions.

Argumentative Essay Sit On Kids With Autism - 1119 Words

Argumentative Essay: SIT in kids with Autism 1 in 68 children suffer from autism according to www.autismspeaks.org. This disease targets children’s brains and makes them have trouble with communicating and forming relationships with people for the rest of their lives. It’s a terrible disease but can be treated through therapy, Sensory Integration Therapy to be exact. Sensory Integration Therapy opens the doors to new lives for children who suffer from autism because Sensory Integration Therapy is designed to target physical sensory and cognitive disorders in an act of play time according to www.kidshealth.org. SIT exposes children to sensory stimulation in a structured repetitive manner according to www.autsimspeaks.org. Within this therapy it has helped millions of children that suffer from autism but most experts don’t practice it or think it’s a waste of time. Not all experts think sensory integration works with learning and attention issues in kids, th ey think there’s more effective ways in improving sensory issues, and they think SIT is limited and inconclusive according to www.understood.org. The experts who do practice it though, see that it does improve learning and attention issues in kids, this is the most effective way, and that it is not limited or inconclusive. SIT isn’t just playtime, it improves learning and attention issues, its effective, and it’s not inconclusive. SIT has been a big controversial topic in the world of Occupational Therapy. Most expertsShow MoreRelatedStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 Pagesapplying OB concepts. Compare the three levels of analysis in this book’s OB model. MyManagementLab Access a host of interactive learning aids to help strengthen your understanding of the chapter concepts at www.mymanagementlab.com cott Nicholson sits alone in his parents’ house in suburban Boston. His parents have long since left for work. He lifts his laptop from a small table on which his mother used to have a vase with flowers. This day will be like tomorrow, and tomorrow will be like today

An American Portrait Photographer, Philippe Halsman

An American portrait photographer, Philippe Halsman, in the mid 1900’s once said, â€Å"A true portrait should, today and a hundred years from today, the Testimony of how this person looked and what kind of human being he was.† He provides a good point, as he gives his opinion that portraits are a representation of an individual, to show the memory of their soul through artwork even if it’s photographs, paintings, drawings, or sculptures. Whether it is to remember the past or present, portraits tell their own story in a moment of time through the frame of the artistic eye. Portraits consist of many underlying layers that are exposed by the artist to mesmerize the viewer to the unique personality of an individual by the style of the portrait,†¦show more content†¦For example, Yousuf Karsh characterizes Muhammad Ali (plate 1) through a powerful photograph, not only as an individual but an American hero who shows power and strength. When looking at the imag e the most apparent form is his face and the emotion that is being expressed. While Ali’s head is turned at forty-five degrees, he remains to have eye contact with the viewers, which means he is not afraid to show the world who he is and how he wants to be represented. Furthermore, the bold stance of his fists carefully placed on his hips and his shoulders slightly forward exemplifies his fearlessness and confidence that he has in himself and that many others who chant his name know him to be. While Karsh identifies a more serious approach to a portrait that captures what Muhammad Ali stood for, there are also more whimsical ways to apprehend the narration of a person. Gwenn Seemel is one amazing artist that truly captures the essence of a person and makes them come alive on the canvas. During the course of an hour long interview, Seemel takes hundreds of photos while her subject spills his or her whole life’s story. In a video about her artwork and the process that go es with it she states, â€Å"Portraits should not be a still thing.† While portraits are often a two dimensional representation of an individual, their spirit is conveyed by the sitter’s facial expression and the style in which the artist wants to convey their personality. In a portrait of a young girl named Lily (plateShow MoreRelatedThe Mirror Like Reflection Of Art956 Words   |  4 Pagesshow how the social, political, and religious circumstances of the different art periods affect the way women were represented. Comparing the work of Johannes Vermeer and Philippe Halsman it is clearly to see how the separations of centuries and different techniques affected the vision of the women’s beauty. Although both, American actress Grace Kelly and The Milkmaid, represent femininity as the main idea, one shows a realistic expression of the beauty, the other image is the author’s perception of