Air New Zealand essay
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 …show more content…
TechnologyAir NZ technology is valuable because it enables the company to improve and build aircrafts and engines, which without the companys goals will be unattainable. This is not a rarity yet because other airlines possess similar technology, if not same and will not be costly for competitors to imitate. Air NZ is not organised to exploit the full competitive potential of this because technology is an endless cycle. This strength provides opportunities and generates a competitive parity.
National flag carrier with government relationshipThis is an extremely valuable resource for Air NZ to possess because it gives them advantages and opportunities to exploit because it is the only official airline of New Zealand also with government relations, as a shareholder. This is also extremely rare because it improves the companys image and cannot be easily possessed by competitors in the New Zealand market. This resource is imperfectly imitable and competitors would face a cost advantage in developing or obtaining it. Air NZ is well organised to exploit the