- Competitiveness for emerging airlines, mergers and globalization
Faced with possible increase in new entry into the industry, the existing airline businesses should seek to be more innovative in means of lowering their costs in order to enjoy economies of scale and increase entry barriers to the industry hence protecting their competitiveness. (Fred, 2011)
With possible mergers, the existing airlines should seek to establish key partnerships with key suppliers and service providers in order to draw suitable synergies necessary for enhancing competitiveness. (Barron & Lynch, 1989)
As globalization present several challenges and opportunities, there is a need to devise strategies like partnering with service providers in different countries in order to enhance delivery of airlines services that are tailored to different market needs. (Keller, 2012)
- Government policies and regulations
With increasing government regulations covering a wide range of aspects including environmental regulation and taxation, airlines should be innovative in tailoring their services to be compliant with environmental regulations like adapting innovation in ensuring that their fleets have minimal environmental effects. On the other hand, with different taxation policies that increase tax burdens and which varies between countries, the airlines should seek to establish operations following suitable structures through business models like franchises in different countries and locations in order to reduce tax burdens that would be huge if operations were run by a single organization. (Barron & Lynch, 1989)
- Global competitiveness, labor demand and supply
Global competitiveness depends on ability to manage diversity among other things hence a need to enhance diversity management through diversity training programs that seek to tailor services and employees’ management depending on their different cultures and needs hence enhancing efficiency. (Fred, 2011)
The growing labor demand causes a challenge for airlines in getting qualified and experienced labor that is necessary in driving the airlines operations which are highly skills based. In that respect, airlines businesses should seek to enhance manpower development by developing programs through which they train and enhance development of their own personnel and through promoting airlines’ services related education programs in the nations education system. (Keller, 2012)
References
Barron, J. & Lynch, G. (1989). Economics. London: Richard D. Irwin Inc.
Fred, R. (2011). (13th Ed.). Strategic Management: Concepts and Cases. New Jersey:
Prentice Hall.
Keller, K. (2012). (4th Ed.). Strategic Brand Management: Global Edition. New York:
Pearson Publishers.
