Analysis Of Qantas & Collaborative Strategy

2409 WordsOct 13, 201410 Pages
TOPIC 1: QANTAS & COLLABORATIVE STRATEGY In today’s highly competitive business environment, companies must continually seek out initiatives that will bring about competitive advantage, which occurs when a firm implements a strategy that is costly or impossible for their competitors to duplicate (HANSON HITT IRELAND HOSKISSON TB). An approach that has been rising in popularity for resource based firms in the past two decades (KALE SINGH) is cooperative strategy, whereby two or more firms work together to achieve the aforementioned competitive advantage. Capabilities of a firm are created through tangible and intangible resources and allow them to perform everyday tasks. These capabilities become core competencies when they develop into a…show more content…
This allows them to capitalise on the core competencies of other firms, resulting in competitive advantage if successful. The major benefits of strategic alliances rather than acting independently include a new source of revenue, a vehicle for firm growth, faster responses to market opportunities, technological changes and global conditions, and grants experiences to draw new knowledge from. In the aviation industry, strategic alliances come in the form of bilateral or multilateral agreements where allied airlines share similar business objectives and coordinate their services to achieve their common goals. According to Doganis (2006), they involve use of a common brand, a uniform service standard, and the asset co-mingling of aircraft, staff, traffic rights, terminal facilities or capital resources to identify the airlines that are in a strategic alliance. Global airline alliances also exist in the aviation industry. Alliance, OneWorld, and SkyTeam were launched between 1997 and 2001, and each contain a dozen or more members. Figure 1 displays the differing levels of coordination between partners in the various partnership types. An example in aviation industry that has successfully employed a strategic alliance is Qantas Airlines, who entered into a non-equity strategic alliance with the large Middle-Eastern airline Emirates. Strategic alliances are evident

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