Determining Competitive Advantage and Business Strategy of Flight Centre

Running head: BUSINESS MANAGEMENT
Business Management
Name of the Student
Name of the University
Author Note

1BUSINESS MANAGEMENT
Introduction
Flight Centre is one of the leading retailers of the services and the products related to
travel in the domain of corporate markets and leisure. The company generally operates in the
corporate, retail and the wholesale brands on an international basis (Flight Centre 2018).
After the acquiring of the liberty travel, the company raised as one of the largest and
recognized travel agencies of the United States. The mission and the goal of the company are
towards the commitment towards the positive contribution and the social responsibility to the
community both in and out the organization. The purpose of Flight centre is to be the most
exciting travel company together with the delivery of the most amazing experiences to the
customers, people and the stakeholders. The assignment illustrates the clear explanation of
the determination of the competitive advantage of flight centre together with the effective
determination of the differences among the dynamic and the fundamental view. The
assignment furthermore illustrates a business strategy of the company, Flight centre on the
basis of the comprehensive situational analysis.
Evaluation of the external issues
The external issues of the travel company can be evaluated by the means of PESTEL
analysis that tends to provide details regarding the operating challenges of Flight Centre.
Political factors like the importance of the customer services, political stability and the level
of corruptions play are important role in the determination of the factors impacting the long
term profitability of the company. Furthermore regulations related to pricing, wage related
legislations, mandatory employee benefits and the issues related to the intellectual property
protection falls under the category of political factors (Williams 2017). The macro economic
factors such as the savings rate, the rate of inflation, the rate of interest, the foreign exchange
rate and the cycle of economies tends to determine the factors of the economic forces in the

2BUSINESS MANAGEMENT
determination of the aggregate demand and investment of Flight centre. Social factors such as
the demographics and the skill level of the population in Australia, the spirit of
entrepreneurship and the nature of the society falls under the category of social factors that
tends to impact the culture of Flight Centre. The technological factors serves as the most
important factor since Flight Centre need to speed up with the technological disputes and the
analysis of the recent technological development by the competitor firms (Erkmen and
Hancer 2015). Factors such as the impact on the cost structure, technological effect on the
product offering and rate of the technological diffusion serves as the important technological
factors. Finally laws related to the environmental pollution and the regulations of the air and
the water in the consumer service industry serves as the environmental factors affecting the
company.
Analysis of the internal issues
The internal issues of light Centre can be analysed by the tool of SWOT analysis.
SWOT analysis basically stands for the strength, weakness, opportunities and the threats of
the company (Flight Centre 2018). The major strength of the Flight centre includes high end
profits earned by the company, the skilled labour force employed in the company and the less
labour cost for the flight centre. Some of the internal weakness of the travel company
includes the current cost structure of the company which is alarming for the management of
Flight centre. Furthermore the debt rating of the company in the upcoming future scenario is
quite high. In relation of the analysis of the internal issues, some of the upcoming
opportunities for the Flight centre include the availability of new market and the availability
of the new and innovative services and the products for the travel company in the highly
competitive market (Lopes et al. 2016). Some of the alarming threats of Flight Centre include
the increasing cost of the services and the products, the increasing arte of the interest, the
alteration of the governmental regulations and the changes related to the technology.