Air New Zealand essay
1. Internal AnalysisCurrent resources, resource capabilities and/or resources potential to provide sustainable competitive advantage for the company.
Distinctive competencies and deficiencies and core competencies.
Key areas of competitive advantageThe VRIO analysis from the appendix suggests Air NZ (Air New Zealand) have only one resource that will provide them with sustainable competitive advantage and is a distinctive competency, this is the intangible resource of Air NZ being the national flag carrier of New Zealand along with their relationship with the government. Other resources which have been identified as having competitive parity include Technology and Buildings with other physical assets, such as airline equipment. Temporary competitive advantage includes resources such as the Air NZ brand name and their labour resources. The only possible deficiency identified in the Value Chain tool was the organisations culture.
The Value Chain analysis in the appendix also indicates all areas in the primary function of Air NZ including research and development in bio-fuel, production with highly skilled and experience workforce specialising in high quality items, marketing and sales function which focuses on the companys advertising and customer loyalty strategies and service function with their wide range of aftersales service and support appear to create value and is vital in developing a competitive advantage. Support activities in the Value Chain also show potential to develop competitive advantage and are mainly linked with the Air NZ organisation infrastructure, resulting in efficiency gain and cost effectiveness. 2. External AnalysisKey industry dynamics/drivers/forcesKey trends from the macro-environment that are likely to influence companyKey competitors and competitive intensityThe five forces model from the appendix identifies key dynamics, drivers and forces as this model suggests there are very few threats in this airline industry. Risk of
Distinctive competencies and deficiencies and core competencies.
Key areas of competitive advantageThe VRIO analysis from the appendix suggests Air NZ (Air New Zealand) have only one resource that will provide them with sustainable competitive advantage and is a distinctive competency, this is the intangible resource of Air NZ being the national flag carrier of New Zealand along with their relationship with the government. Other resources which have been identified as having competitive parity include Technology and Buildings with other physical assets, such as airline equipment. Temporary competitive advantage includes resources such as the Air NZ brand name and their labour resources. The only possible deficiency identified in the Value Chain tool was the organisations culture.
The Value Chain analysis in the appendix also indicates all areas in the primary function of Air NZ including research and development in bio-fuel, production with highly skilled and experience workforce specialising in high quality items, marketing and sales function which focuses on the companys advertising and customer loyalty strategies and service function with their wide range of aftersales service and support appear to create value and is vital in developing a competitive advantage. Support activities in the Value Chain also show potential to develop competitive advantage and are mainly linked with the Air NZ organisation infrastructure, resulting in efficiency gain and cost effectiveness. 2. External AnalysisKey industry dynamics/drivers/forcesKey trends from the macro-environment that are likely to influence companyKey competitors and competitive intensityThe five forces model from the appendix identifies key dynamics, drivers and forces as this model suggests there are very few threats in this airline industry. Risk of