Ever since globalization has started companies have been looking for ways to compete successfully on a global scale. Trends in the global environment such as rapid communication, technology innovation, and global sourcing models requiring to manage cultural differences are still challenging for many industries (cp. Yip, 2003, pp. 1–3). The airline industry being itself a reason for an increasing borderless world also faces these global trends and high competition due to expansion, consolidation, concentration, and alliances. Terrorism and rising costs for fuel, labour, maintenance, and security have not been the only threats for the industry. Also rising customer expectations e.g. regarding comfort, entertainment, experience, convenience, innovation, personalization and value for money require the airline industry to change dynamically. Moreover, airlines face demands for pollution control, corporate social responsibility, and sustainable travel. Rising competition from low-cost carriers is also relevant since their share of global capacity increased to more than 25 % in 2013. So, even if demand for air transportation has grown by an average of 9 % per year since 1960, and global airline revenues reached a new high of US$708 billion in 2013, airlines need to find ways to stand international and global competition as their environment potentially endangers profits and economic survival (cp. Lynes & Dredge, 2006, pp. 122–129; PricewaterhouseCoopers, 2014, pp. 2–3).
Table of Contents
1 Introduction
1.1 Problem Statement and Aim of the Paper
1.2 Research Methodology and Structure of the Paper
2 Theoretical Foundation
2.1 Competitive Advantage According to Porter
2.2 Resource-based View
2.3 Corporate Culture
3 Practical Implementation at Emirates Airline
3.1 SWOT External and Internal Analysis
3.2 Corporate Culture
4 Critical Analysis and Recommendation
5 Conclusion and Outlook
Objectives and Topics
This paper aims to analyze how companies can successfully manage corporate culture to derive sustainable international and global competitive advantages, with a specific focus on identifying key characteristics relevant to the airline industry.
- Strategic importance of corporate culture as an organizational resource.
- Application of the resource-based view and Porter's generic strategies.
- Internal and external analysis of the airline industry using Emirates Airline as a case study.
- Evaluation of corporate culture as a source of sustainable competitive advantage.
- Integration of corporate social responsibility into corporate strategy.
Excerpt from the Book
3.2 Corporate Culture
In every company CC consists of clear vision and values guiding how employees work to achieve the organization’s mission and goals. The vision defining a desired future state can be found at Emirates in becoming a top global lifestyle brand connecting people and places, as well as passions and cultures via its brand platform “Hello Tomorrow” (The Emirates Group, 2014a, p. 18). The mission specifying the environment in which the firm intends to operate and the customers it intends to serve gives clarity about a company’s purpose and how it makes a difference to stakeholders (cp. Grant, 2013, pp. 59–62; Volberda et al., 2011, pp. 22–23). Emirates intends to deliver the best possible quality service and experience to customers worldwide. Focus lies on the latest technology, creative ways to meet customers’ needs, quality but not quantity, and steady improvement (cp. The Emirates Group, 2014a, p. 16). This is also reflected in the forward looking statement of always “going further” (ibid.). By investing in products, people, infrastructure, and technology the airline wants to differentiate from competition as being agile and going the extra mile to deliver added value to customers (cp. ibid., p. 6).
Summary of Chapters
1 Introduction: Provides an overview of global market trends, the competitive environment in the airline industry, and defines the research scope regarding corporate culture.
2 Theoretical Foundation: Establishes the conceptual framework, focusing on Porter’s competitive strategies and the resource-based view of the firm.
3 Practical Implementation at Emirates Airline: Conducts a SWOT analysis and examines how Emirates utilizes its specific corporate culture and values to gain a competitive edge.
4 Critical Analysis and Recommendation: Discusses the link between global strategy and corporate culture, evaluating whether culture serves as a sustainable competitive advantage.
5 Conclusion and Outlook: Summarizes the findings, confirming that while challenging to quantify, a strategically managed corporate culture is a vital asset for long-term firm performance.
Keywords
Corporate Culture, Competitive Advantage, Airline Industry, Emirates Airline, Resource-based View, Strategy, Globalization, Corporate Social Responsibility, Sustainability, Strategic Management, Organizational Capabilities, Innovation, Differentiation Strategy.
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on the role of corporate culture as a potential source of sustainable international and global competitive advantage within the airline industry.
Which theoretical frameworks are used in this study?
The study utilizes Porter's model of generic strategies and the resource-based view (RBV) to analyze how organizations can create and sustain competitive advantages.
What is the primary goal of the research?
The goal is to determine how corporate culture can be effectively managed and leveraged as a strategic asset to help firms outperform rivals in a highly competitive market.
How is the research methodology structured?
The paper is based on secondary literature, providing a theoretical introduction followed by a practical implementation analysis of Emirates Airline as a case study.
What does the main body of the paper cover?
It covers the theoretical background, a detailed SWOT analysis of Emirates, an investigation into the airline's corporate culture, and a critical evaluation of these factors.
Which keywords best characterize this work?
The work is characterized by terms such as Corporate Culture, Competitive Advantage, Resource-based View, and Strategic Management.
Why did the author choose Emirates Airline for the case study?
Emirates serves as a representative example of a company that has successfully globalized a differentiation strategy rooted in high-quality service, diverse corporate culture, and continuous innovation.
What is the author's conclusion regarding corporate culture as a competitive advantage?
The author concludes that while measuring its exact economic impact remains difficult, a well-managed, valuable, and rare corporate culture is essential for defending a company's competitive advantage in a globalized market.
- Quote paper
- Lisa Guhl (Author), 2015, Managing Corporate Culture for International and Global Competitive Advantages in the Airline Industry, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/345239
