Scope for competitive advantage within Australian airline industry can be broadly classified as follows. Service: Apart from fulfilling the basic task of transporting people and their luggage between two or more points, the airline must decide which additional services create value for the customer and add to their bottom line. This is one of the most important factors that create scope for competitive advantage. An airline basically can make use of three business models 1) offering …
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…of customers and their baggage. Moreover, without its famous brand in its home country, the launce of Virgin Blue probably would not be this easy. Customer preference: Loyal customers can be built by creating an attractive frequent-flyer program. This strategy is commonly implemented by well-established full- service airlines which try to defect from price-cutting competition. Geographical scope: The airline can focus on serving small market that has few competitors such as selecting non-traditional route network.