Flight Centre: Business Level and Corporate Strategy Evaluation

This report provides an analysis of Flight Centre's business and corporate strategies. It identifies and evaluates two key business-level strategies: cost leadership and market differentiation, with a focus on how these strategies are implemented in response to external market dynamics. The report uses the Blue Ocean Strategy framework to assess the effectiveness of these strategies, considering factors such as fluctuating operational costs due to taxation and minimum wage changes. Furthermore, the report evaluates the corporate-level strategy, particularly the strategy of purposeful abandonment, where Flight Centre shifts its operations to a new economy to address challenges such as supply chain instability and fluctuating labor costs. The analysis includes an assessment of how the company can leverage the new market to gain a competitive advantage, including the availability of cheap skilled labor and reduced competition. The report also discusses the development and assimilation of the new business strategy, considering the impact on market segmentation and brand awareness. The report concludes with a reference list of supporting literature.

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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

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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

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At the time when the company was operating totally in Australia, they had to face two primary
challenges. One of them was the fluctuating behaviour of the supply line that suffered from high
level of market segregation. The other was fluctuation in the basic wage level of the workers that
fluctuated constantly due to the constant change in the wage regulations of the Australian
government. Search issues had been resolved by flight Centre through the strategy of adopting
the process of shift of the operation of the manufacturing team to a different economy (Laterza
2016).
In this context, the most profitable and innovative strategy that the company can consider
adopting is the practice of purposeful abandonment. The company have to cease offering some
of their products and services in the new market and focus on the manufacture and sales of their
high end technological products only. The market size of the company in the new economy
would be shirked but on the other end the brand awareness, brand proficiency and the
purposefulness of the product line would be enhanced. In the foreign market, there is deficit of
companies that create high end technological products. That is why, the customer base for the
product is also barren. In such a state the company possess the strength to develop a new product
line and by means of that, bring about market segmentation.
Development and Assimilation of latest identified business strategy
Like something is going to enter into a different country with their production team although the
part of the production that is associated with high end technological disruption is only being
transferred to the offshore location. While operating in a different economy for the first time,
they are bound to lift the attention of the market towards them. The company has selected such a
market where there are not much technological related activities where the low wage skilled
workers are involved and that is why such technology workers could be availed at a cheap price

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by the company (Mebert and Lowe 2017). Evidently the same kind of companies those which
produce the same kind of services as flight centre are also supposed to be very less here.
Hence, the analysis of the above factors reveal that there is a way negligible number of
companies that are engaged in the provision of the same sort of services as that a flight centre
and hence the examination and the accounting of the company towards very common cause or
strategy that is used by many other organisation also for the purpose of business operations.

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Reference List
Laterza, V., 2016. Resilient labour: workplace regimes, globalisation and enclave development
in Swaziland. The Journal of Development Studies, 52(4), pp.576-590.
Mebert, A. and Lowe, S., 2017. Blue Ocean Strategy: How to Create Uncontested Market Space.
Macat Library.
Robinson, P., Fallon, P., Cameron, H. and Crotts, J.C. eds., 2016. Operations management in the
travel industry. CABI.
Tunçalp, D., 2018. Book Review: Waves of change: Globalisation and seafaring labour markets.