THE EFFECT OF GENERIC STRATEGY ALTERNATIVE ON COMPETITIVE ADVANTAGE: THE CASE OF ETHIOPIAN AIRLINE

Abstract

The main objective of the study was to find out the effect of generic strategy alternative on competitive advantage: the case of Ethiopian airlines. Explanatory research design and quantitative research approach was employed in the study. The target population of this study has included all individuals working initially from team leader and above managerial position who are currently working in Addis Ababa at the head office of Ethiopian airlines in Addis Ababa. Firstly, a purposive sampling technique was used to identify knowledgeable respondents or management members who are familiar with strategy formulation. Then, Stratified sampling technique was used to proportionally allocate the sample size based on the number of top, middle and lower management. A self- administered questionnaire has been used to collect the data. Out of 315 questionnaires distributed 216 questionnaires were returned and used for analysis. Quantitative data was analyzed using descriptive statistics, correlational analysis and regression analysis. Cronbach's alpha test was used to test the reliability of data and the Cronbach's alpha value both for the constructs were found above the thresh hold value 0.70. The findings of the study revealed that Cost strategy, differentiation strategy and focus strategy were found to have a positive and significant effect competitive advantage of Ethiopian Airline. The results of the study will be of much value to the airline industry in general and Ethiopian airlines in particular. Based on the findings of the, a number of recommendations have been provided so that the airline can make use of these generic strategies to develop a competitive edge over other airlines operating in the same route.