Exploring Business Level Strategies and Market Dynamics of Flight Centre

Running head: MANAGEMENT
Management
Student’s Name
University Name
Author’s Note

2MANAGEMENT
1. Identification of two strategies in the business level
The two most feasible business level strategies that have been used by the organisation in order
to explore the possibilities in the external business environment of Flight Centre as follows:
 Implementation of the Cost Leadership strategy in order to reduce their product expense
and as such develop the price competitiveness of their product or services in the market
 The second business level strategy for Flight centre would be the strategy of market
differentiation. Under this strategic aid, the company would aim at engrossing different
consumer market segments. The selection of the different consumer segment would be
based up on the clearly defined competitive advantages that the company would be able
to enjoy by means of operating that business sector in that particular area.
The efficiency of the two business level strategies can be best described by means of
development of a Canvas Map where the Blue Ocean Mapping Canvas would be plotted in order
to highlight the efficiencies of the two strategies in the context of the business development
roadmap of the organisation.
The taxation policy and the minimum wage framework of the Australian framework suffers
frequent shuffling, because of which the operations cost of company remains changing.
(Tunçalp 2018). As an impact of the fluctuation in the policy decisions, travel agencies are
forced to alternate their service prices. The expenses related to operations hence the revenue
generation by the organisation is highly unstable and hence the revenue share of the company is
also varying. In the industries, there are large number of hotels, cheaper customer in as well as
Café who offer cheaper services of the same category. Again, the highly competitive business
nature of the industry attracts many small market players including hotels, cafes as well as the

3MANAGEMENT
others to provide cheaper service (Robinson et al. 2016). The structure formation recommends
that the company should also agree with the intensity of innovations personal destructive options
which might help in the shifting the opposition to a level which is observed in intrinsic
atmosphere of the industry. Based on the provisions of the Blue Ocean Strategy it can be
recognised that Fight Centre should be adopting innovative and destructive options which might
turn out to be helpful for shifting the operations to a new level, absolutely, so that competitions
can be nullified. The company can get hold of a new consumer market also in the new economy
where they are shifting its operations and this is why a differentiation in the consumer segment
would be brought about. The company flight Centre has shifted major section of the organisation
procedure to an offshore location. In the current location, supplier power of the company have
been becoming weak.
Then the development as well as emergence of various suppliers like the hospitality
Agencies, the aviation companies as well as others in the similar domain makes the supply
line segregated and the supply relation of the company becomes loose.
Henceforth, flight centre would step into a New Market within unique production team and
thus the supplier’s power would automatically diminish. Associated with that the cost of
production that has already been going up and down for flight Centre owing to constant
fluctuation of the basic salary of the workers, now would become stable. Again in the new
market place, where the company is going to shift its operation will team, there will be a ready
availability of cheap labourer skilled in technological work. As such major drivers of cost
leadership are present in the new market.
Evaluation of the corporate level strategy