The paper 'The Fundamental Dimensions of Strategy' is a wonderful example of a Business Case Study. Qantas-Emirates alliance was put in place with the aim of enhancing the operations of two groups. Qantas group owns one of the most popular airline companies in Australia while Emirates group owns the most popular airline industry in the United Arab Emirates (Mules, 2013). The concepts of operations management are important in terms of promoting the growth and development of an organization. The strategies that are used by an organization are also useful to determine their level of competitiveness in the market.
This is considering that there is no market that enjoys a total monopoly. Qantas group owns Qantas Airline while Emirates group owns Emirates airways. The airline industry is also one of most the most competitive industries in the world and hence the alliance that was put in place as a strategy for increasing the competitive advantage (Borenstein & Rose, 2013). An analysis of the market is also important for an organization for the purposes of identifying the level of competition. This is also useful for an organization in terms of putting in place strategies to deal with competition.
Strategic management is therefore important in terms of determining the success of an organization. The paper thus discusses the concepts of strategic management in relation to the case study of the Qantas-Emirates alliance. Discussion The issue in the industry and competitor environment The airline industry is quite competitive due to customer loyalty issues with regard to some brands in the market. Customer loyalty makes it difficult for a new entry to perform well in the market.
A strategic alliance that was put in place by Qantas and Emirates was for the purposes of increasing the competitive advantage. A strategic alliance involves an agreement by two independent companies to join forces and achieve specific goals and objectives by taking advantage of economies of scale (Frery, 2006). The competition in the airline industry usually involves both local and international companies. The strategic alliance is thus an important aspect of ensuring that the competitive advantage is gained. According to the chamberlain’ s strategy theory, a strategy has a single coherent focus. In the case of the Qantas-Emirates alliance, the focus of the strategy is to increase the competitive advantage of the two companies in the market.
On the other hand, the theory also emphasizes that the various factors usually shape the strategies and they include internal, external, and shareholder. The strategy of the companies with regards to the issues facing the industry is influenced by competition which is an external factor. The approach that is used also plays an important role in terms of determining the mechanism in which the strategy can take effect.
The issues of globalization are also affecting the airline industry and hence impacting negatively on the profitability and competitive environment. Globalization requires airline companies to be innovative and adopt the use of technology in order to meet the needs of global customers (Freeman, 2010). Five forces model The threat of new entrant There is no threat of new entrants in the market due to the barriers to entry. The airline industry requires a lot of capital and it may take a long period of time to gain customer loyalty (Kumar, 2006).
This is an advantage to Qantas as it faces no risk of a new entrant.
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