Sources of Competitive Advantage deduced from the Porter Analysis
Based on the Porter Five Forces Frame work, many sources of competitive advantage exist in the air line industry. It should also be mentioned that capital is not a competitive advantage in this case as all the major air lines have abundant supply of money. The sources of competitive advantage include:
- · Strategic Alliances can be built with the key suppliers for important inputs. By partnering with suppliers, efficiency is achieved and a key victory is scored over competitors.
- · Experience and learning curve effects are one of the most important sources of competitive advantage in such a high technology industry. By investing in recruitment and training and development, new and existing workers are provided with the tools to exceed which translate into growth and profitability for the company.
- · Regulations play a significant role in providing competitive advantage to the Middle Eastern air lines over prospective foreign entrants. Etihad Airways has the additional benefit of being the official air line of the United Arab Emirates. This provides them with greater protection over their rivals.
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