The Current And Potential Use Of Knowledge Management Within The Essay

The Current And Potential Use Of Knowledge Management Within The Airline Industry - Essay Example The Current And Potential Use Of Knowledge Management Within The Airline Industry The various sectors of both AirAsia and the Malaysian Air travel industry were considered and the study research conducted on how they have strategized their operations in order to reap the good benefits of Knowledge Management (AirAsia 2007). The key aspects of Knowledge Management with concern to the airline industry included the information communication technology, organizational learning that involves collective approach towards gaining intellectual capital by the organization, and knowledge sharing that is done between various organizations and institutions either within or externally to acquire better skills and knowledge (Christensen 2007). An industry analysis was conducted and it was clear that the Malaysian Air Services is an oligopoly. It was found out that ICT had been used in innovation, knowledge development and utilization and knowledge capitalization whereas organizational learning and knowledge sharing were so fruitful in improving the modus operandi and new business development for the two airlines. It was thus recommended that the AirAsia knowledge management practices needed to support their expanding business besides sustenance of its cost-leadership advantage and MAS would have to face challenges of its hybrid strategy of competitive pricing and differentiation that would in turn make its brand recognized as a five-star value carrier. (Oxford Business Group 2007). 2.0 Introduction The term Knowledge Management is a diverse field though does not have a specific common definition throughout the universe. In a general sense this is the collective use of skills, principles, facts and rules embodied in a firm’s knowledge assets to add value to the organization by gaining competitive knowledge over othe r firms (Stonehouse and Pemberton, 1999).Knowledge Management is a prerequisite to successful operation by various companies in the current hyper-competitive and ever-dynamic environment where survival can only be a product of their ability to develop longing knowledge-based competencies which can be easily adapted (Nonaka, 1991).though it be difficult to manage, it is most likely that it is the most strategic organizational asset (Shepard, 2000) and is the dominant way of gaining competitive advantage. Knowledge can be classified as either generic or specific though to a certain degree specific knowledge is unique to the firm hence it is more likely source of competitive advantage and is the basis of main competences in comparison with generic knowledge which is even so necessary for business operation (Stonehouse and Pemberton, 1999).the airline industry with its very competitive nature, dynamic stance, complexity alongside its high dependence on knowledge management gives