Competitive Advantage for Airlines

Competitive Advantage

Competitive advantage is the ability of an organization to outperform others because they produce desired goods or services more efficiently and effectively than its competitors.

From the passage talking about Cathay Pacific, it shows that they are not very interested in setting up a low-cost subsidiary to compete with other competitors such as Singapore Airlines and All Nippon Airways to gain market shares. Nevertheless, they maintain their market shares as before which means that not many customers are changing their preference. It shows that Cathay Pacific has built a competitive advantage such that they have the ability to outperform others to keep their customer using their services. The most obvious competitive advantage they are enjoying is the quality. They have been continuously making improvements such as offering Premium Economy Class[ http://www.cathaypacific.com/cpa/en_HK/aboutus/pressroomdetails?CX_LANGUAGE=en&CX_COUNTRY=HK&refID=48fb9689c0134310VgnVCM1000000ad21c39____], renewing their fleets and offering new destinations[ http://www.cathaypacific.com/cpa/en_HK/new-destination?CX_LANGUAGE=en&CX_COUNTRY=HK]. Also, they have been training their staff and listening to customers' advices to improve their quality of services. They have also been alerting to their competitors as seen by renewing the design of their new business class. All of the above showed that Cathay Pacific has built a strong image of good quality which is a competitive advantage to them.

As for the Spring Airline, they are enjoying a competitive advantage of responsive to customers. They enjoyed this because they are offering the tickets 30% lower than the other competitors[ http://www.china-sss.com/en/Static/SpringAirlines]. In China, consumers are very price sensitive that they will try their best to find out the cheapest price of the product not excluding travelling cost. Therefore, in respond to the need for Chinese customers, Spring Airline offered very low price as low as RMB 99 for domestic travel. The low ticket cost attracted substantial amount