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Strategic Analysis Report

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Submitted By peisangirl25
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Strategic Analysis Report
Flux Consulting – Airline Division

Queensland University of Technology
MGB309 – Strategic Management

Pei San Chew – 0 8000492

Tutor: Christophe Garonne (Tutorial 8)
Word Count: 2160
1.0 Executive Summary
The air transportation industry within Australia is highly competitive. However, there is solid evidence and a strong indication that Virgin Australia can seize power over the current market and outrun its competitors for its long-term survival. Virgin Australia should optimise opportunities and remain competitive by either strengthening its alliance with SIA or outsourcing to a specialist company in ground handling. The key challenge for the company is to create strategies that ensures effectiveness. The strategies will draw upon previous internal and external analysis conducted and focus on developing strategic alliances and strategic outsourcing.

This report analyses the benefits and limitations of these potential strategies and provides practical recommendations to ensure long-term strategic sustainability. The results of the evaluation between the two strategies illustrate that the first strategy is more appropriate for Virgin to be sustainable in the long-term.

There are several advantages that Virgin possesses which includes its strategic alliance’s strong position in the Asian market, and its ability to integrate newly planned flight routes. This means that Virgin is able to benefit from the strengths of its alliance. Moreover, it is recommended that the management team starts controlling the flow of certain information in the workplace to ensure that both parties mutually benefit from the relationship. This will also reduce the risks associated with strategic alliances.

The company should also start dominating the Australia – Asia flight routes to prevent major airline companies from being ahead in the

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