Airlines and the Oligopoly Market Structure Assignment

Airlines and the Oligopoly Market Structure - Assignment ExampleThese advantages are witnessed in service pricing, destination services, marketing, and promotion, as well as the formal hub philosophy that drives either point-to-point destination services or major hub development. Much of these private-enterprise(a) advantages uprise from establishing a market-oriented culture, defined as delivering superior value to clients (Narver, Slater & Tietje 1998, p.242). It is about aligning the business model based on three dimensions, having a customer orientation, a competitor orientation, and the ability to coordinate all business units with an inter-functional, systems-based philosophy and structure (Gauzente 1999, p.2). The majority of the airlines identified in the research article have established a market-oriented business model and internal culture, that provides both competitive advantages over other airlines in this oligopoly as well as a strong defect in the consumer market. A market orientation strategy is a powerful competitive advantage, because it is an invisible asset that takes a long time to establish and one(a) that is difficult to imitate (Johnson & Verayangkura 2001, p.2). ... a market structure, constant environmental s domiciliatening occurs to witness the competitive behaviors of rival firms to avoid market share losses or loss of brand reputation in consumer markets. Nickels, McHugh & McHugh (2005) identify a competitive advantage as better development of core competencies. These are functions that the organization can do as well or better than any other organization in the world (Nickels, et al., p.257). In the article the joys of oligopoly, it is identified that the core competencies of sou-west Airlines, as one example, is the ability of the firm to structure its scheduling, labor, and point-to-point destination services to provide low-cost, no-frills service that continues to bring the business significant revenues from satisfied cust omers. man larger competitors with more market presence continue to provide customers better in-flight services that require a higher pricing model, Southwest is able to issue its services effectively and with limited perks for the more frugal consumer. Southwest is also able to follow an A to B flight philosophy which fills more seat daily rather than waiting at a regional hub for connecting traffic that allows for almost instantaneous departure after a flight has arrived at the aerodrome (Associated Press 2001). The core competencies of Southwest are labor-related, flight capacity scheduling, and independence from hub philosophy. However, other airlines that do utilize a hub philosophy consider this a competitive advantage in this market structure as it provides greater frequency, more destinations and lower fares than customers could expect without it (Associated Press, p.3).