Identifying the core competence as a key requirement for business model innovation. The case of Airlines as a service industry

Nair, Sujith Krishnan Suchithra and Paulose, Hanna and Palacios Fernández, Miguel and Tafur Segura, José Javier (2012). Identifying the core competence as a key requirement for business model innovation. The case of Airlines as a service industry. In: "Global Innovation and Knowledge Academy Annual Conference (2012 GIKA)", 10/07/2012 - 12/07/2012, Valencia, Spain.

Description

Title: Identifying the core competence as a key requirement for business model innovation. The case of Airlines as a service industry
Author/s:
  • Nair, Sujith Krishnan Suchithra
  • Paulose, Hanna
  • Palacios Fernández, Miguel
  • Tafur Segura, José Javier
Item Type: Presentation at Congress or Conference (Article)
Event Title: Global Innovation and Knowledge Academy Annual Conference (2012 GIKA)
Event Dates: 10/07/2012 - 12/07/2012
Event Location: Valencia, Spain
Title of Book: Global Innovation and Knowledge Academy Annual Conference (2012 GIKA)
Date: 2012
Subjects:
Freetext Keywords: Business model innovation, Core competence, Flexible business models, Airline industry
Faculty: E.T.S.I. Industriales (UPM)
Department: Ingeniería de Organización, Administración de Empresas y Estadística
Creative Commons Licenses: Recognition - No derivative works - Non commercial

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Abstract

Core competencies form the basis of an organization’s skills and the basic element of a successful strategic execution. Identifying and strengthening the core competencies enhances flexibility thereby strategically positioning a firm for responding to competition in the dynamic marketplace and can be the difference in quality among firms that follow the same business model. A correct understanding of the concept of business models, employing the right core competencies, organizing them effectively and building the business model around the competencies that are constantly gained and assimilated can result in enhanced business performance and thus having implications for firms that want to innovate their business models. Flexibility can be the firm’s agility to shift focus in response to external factors such as changing markets, new technologies or competition and a firm’s success can be gauged by the ability it displays in this transition. Although industry transformations generally emanate from technological changes, recent examples suggests they may also be due to the introduction of new business models and nowhere is it more relevant than in the airline industry. An analysis of the business model flexibility of 17 Airlines from Asia, Europe and Oceania, that is done with core competence as the indicator reveals a picture of inconsistencies in the core competence strategy of certain airlines and the corresponding reduction in business performance. The performance variations are explained from a service oriented core competence strategy employed by airlines that ultimately enables them in having a flexible business model that not only increases business performance but also helps in reducing the uncertainties in the internal and external operating environments. This is more relevant in the case of airline industry, as the product (the air transportation of passengers) minus the service competence is all the same.

More information

Item ID: 19261
DC Identifier: http://oa.upm.es/19261/
OAI Identifier: oai:oa.upm.es:19261
Deposited by: Memoria Investigacion
Deposited on: 02 Feb 2014 10:56
Last Modified: 21 Apr 2016 17:31
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