Competition and Development in the Aviation Industry: An Analysis of Strategic Adaptability and Challenges
Zhou, Wenxiang (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024051511966
https://urn.fi/URN:NBN:fi:amk-2024051511966
Tiivistelmä
This paper provides an extensive analysis of the competition and development in the aviation industry, focusing particularly on the strategic adaptability and challenges faced by Low-Cost Carriers (LCCs) and Full-Service Carriers (FSCs). In the context of globalization, rapid technological advancements, and evolving market demands, the aviation sector is undergoing significant transformations. This study aims to dissect these changes and evaluate their impact on the operational and strategic frameworks of LCCs and FSCs through a comprehensive literature review and a detailed SWOT analysis.
The literature review segment uncovers the evolution of business models in the aviation industry. It reveals a trend towards the convergence of LCC and FSC business models, driven by the need to remain competitive and financially robust in a market characterized by intense competition and volatility. The study further scrutinizes the profound impact of the COVID-19 pandemic, highlighting how it has reshaped airline business models, operational strategies, and market structures, compelling airlines to pivot and adapt to a rapidly changing environment.
Conducting a SWOT analysis, this research meticulously assesses the strengths, weaknesses, opportunities, and threats faced by LCCs and FSCs in the current market landscape. This analysis sheds light on the internal capabilities and limitations of these airlines, their susceptibility to external market forces, and their agility in leveraging emerging market opportunities amidst challenges. In addition, the paper delves into the critical role of customer satisfaction in shaping competitive advantage, exploring how airlines orchestrate their services and strategies to enhance customer experiences and foster loyalty
Furthermore, the research explores the expansion strategies employed by airlines to fortify their market presence, particularly in emerging markets. It discusses how airlines strategically navigate through complex regulatory environments, manage operational costs, and harness technological innovations to streamline operations and enhance service delivery.
This paper offers forward-looking insights into the future trajectory of the aviation industry and strategic recommendations for industry stakeholders based on the research findings. By conducting a comprehensive analysis of LCCs and FSCs, the study not only elucidates the current state and future trends of the aviation sector but also provides theoretical and practical guidance for airlines to formulate strategies that resonate with market dynamics and customer expectations.
The literature review segment uncovers the evolution of business models in the aviation industry. It reveals a trend towards the convergence of LCC and FSC business models, driven by the need to remain competitive and financially robust in a market characterized by intense competition and volatility. The study further scrutinizes the profound impact of the COVID-19 pandemic, highlighting how it has reshaped airline business models, operational strategies, and market structures, compelling airlines to pivot and adapt to a rapidly changing environment.
Conducting a SWOT analysis, this research meticulously assesses the strengths, weaknesses, opportunities, and threats faced by LCCs and FSCs in the current market landscape. This analysis sheds light on the internal capabilities and limitations of these airlines, their susceptibility to external market forces, and their agility in leveraging emerging market opportunities amidst challenges. In addition, the paper delves into the critical role of customer satisfaction in shaping competitive advantage, exploring how airlines orchestrate their services and strategies to enhance customer experiences and foster loyalty
Furthermore, the research explores the expansion strategies employed by airlines to fortify their market presence, particularly in emerging markets. It discusses how airlines strategically navigate through complex regulatory environments, manage operational costs, and harness technological innovations to streamline operations and enhance service delivery.
This paper offers forward-looking insights into the future trajectory of the aviation industry and strategic recommendations for industry stakeholders based on the research findings. By conducting a comprehensive analysis of LCCs and FSCs, the study not only elucidates the current state and future trends of the aviation sector but also provides theoretical and practical guidance for airlines to formulate strategies that resonate with market dynamics and customer expectations.