Industry Analysis Of Technology Consulting Essay - 752 Words

Industry Analysis of Technology Consulting Outsourcing services: This Industry Analysis is on Technology Consulting and Outsourcing Services. Focusing on companies providing Global IT consulting services in this industry. This report will provide industry financial projections, competitors market capitalization, market share, and challenges. Industry Financial Projections: The Global IT consulting services are growing; this growth is occurring in the U.S and Worldwide market. â€Å"For 2016, CompTIA’s consensus forecast projects 4.9% global IT industry growth and 4.7% growth in the U.S. market. â€Å"(IT Industry Outlook, 2016) This represents a .2% growth difference. Showing the worldwide IT industry and U.S market’s growth are trending firmly. â€Å"According to the research consultancy IDC, the global information technology (IT) market surpassed $3.7 trillion in 2015 and is on track to reach $3.8 trillion in 2016 (constant currency). Covering revenue generated from hardware, software, IT services, and telecommunications. â€Å"(IT Industry Outlook, 2016). Showing an expected industry growth of 0.1 trillion increase. Industry Competitors and Market Capitalization: This chart attached below shows November 4, 2016; market capitalization results from Google Finance. Com. (Google finance) Google – Alphabet Inc., Microsoft Corporation, and Oracle have the top 3 Global IT Outsourcing Service Market Capitalization. Alphabet Inc. is leading the market share capitalization with a 75.87B increaseShow MoreRelatedResearch Report On Management Consulting Industry1503 Words   |  7 PagesReport on Management Consulting Industry [Type the document subtitle]  Table of Contents Executive Summary​1 1.0​Introduction​2 2.0​Industry Overview​2 2.1 Industry’s Selections Objectives​2 2.2 Industry’s Drivers​2 Technological Factors​2 Legislative Factors​3 3.0​Strategic Tools and Analysis​3 3.1 PESTEL Analysis​3 3.2 Porter Five Forces Analysis​4 3.3 SWOT Analysis​6 3.3.1 General SWOT Analysis​6 3.3.2 Internal factor Analysis Summary​7 3.4 SFAS Matrix (Strategic Factor Analysis Summary)​10 3.5Read MoreA Brief History Of Management Consulting819 Words   |  4 PagesHistory of Management Consulting Management consulting is helping other organizations make best possible decisions to maximize their profits, not necessarily generating more revenue. The field of this job has been growing in the past two decades. 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Describe the overarching strategy and the environmental conditions that made Razorfish grow so rapidly. How do you know the strategy you describe is the one Razorfish is pursuing (site evidence from the case AND describe the core competencies that Razorfish employs to support the overall strategy)? (400 word limit) The overarching strategy that Razorfish used is acquisitions. Based on the book â€Å"In 1996, Omnicom invested in Razorfish withRead MoreUse Of Technology Through Online Service Support And A Cloud Storage System1082 Words   |  5 Pagesservices are on the rise as technology and knowledge is easier to access. Companies, government, non-government institutions, individuals, and organizations each time rely more on IT services, adapting to the changing technology. Making IT consultant companies a more attractive and lucrative business. OxTech will provide to schools all aspects of IT support including network and wireless, website management, server management among others. Also will facilitate the use of technology through online serviceRead MoreThe Future Of Business Consulting869 Words   |  4 Pagesgrowth trend in the global consulting market, with emerging markets becoming more profitable and important in the foreseeable future (Salifu). Companies will also increasingly seek wholistic consulting services (Salifu). Our research corroborated this trends, as well as gave us more insight into the future of business consulting. Saliently, it indicated that changes in the economic, technological, business and political environment are set to affect the consulting industry. Consequentially, it willRead MoreEssay on IBM Case Analysis1705 Words   |  7 PagesIBM Case Analysis The International Business Machines Corporation, IBM, is the world’s largest information technology company, with 80 years of leadership in helping businesses innovate. Drawing on resources from across IBM and key Business Partners, IBM offers a wide range of services, solutions and technologies that enable customers, small, medium, and large, to take full advantage of the new era of e-business. This paper will present a brief overview of the company, including a brief SWOT analysis

Fast Foods And Fast Food - 2128 Words

Fast food is defined as â€Å"easily prepared processed food served in snack bars and restaurants as a quick meal or to be taken away.†. The first fast food restaurant was developed in America, 1948. Fast food is now recognized globally, generating an annual revenue of $570 billion. However, this ever growing market is associated with higher BMI and weight gain. I investigated whether exposure to fast food advertising via television increases fast food consumption, and whether our fast food consumption differs with age. A CATI telephone survey was conducted using 400 participants across the UK, and it was found that the more TV watched at the weekends correlated positively with the amount of fast food purchased. Additionally, it was found that adolescents and young adults consume the highest levels of fast food. Implications of this research include fast food awareness programs targeted at the high risk age groups, and a reduction in televised fast food adverts. A predicted quarter to one third of all TV adverts in the US are related to food. 90% of these are aimed specifically at young children and adolescents, and consist of foods high in fat, sugar or sodium (Powell et al, 2007). It is also identified that â€Å"cultivation research maintains that cumulative exposure to TV influences audiences’ views of and beliefs about the real world†, therefore, the amount of TV watched is likely to affect the way people perceive the consequences of eating fast food. Here, it’s likely toShow MoreRelatedFast Foods And Fast Food1339 Words   |  6 PagesWhen it comes to fast food it is just what it is fast food. On a busy or slightly rough day it’s so easy and typical to grab some food on the go and keep it moving. Are we able to find a solution to fast food and its nutritional value of being healthy rather than unhealthy? Fast food comes in handy and gives you a satisfying taste and is a quick fix to feed your hunger at that moment which leads to no kind of nutritional nourishment for your body. It gives the body what it needs at the momentRead MoreFast Foods : Fast Food Consumption2960 Words   |  12 Pages Fast Food Consumption Alshahrani Abdullatif Fast Food Consumption FAST FOOD CONSUMPTION Introduction The nutriment companies have set up plenty of poor force in present ages, having the duty for groining excess fat prices and alternate fitness trouble additionally as for sending-off great ecological effects like multiplied greenhouse gasses. This features impressed an abundance of individuals to startRead MoreFast Foods And Fast Food1649 Words   |  7 PagesFast food is popular because it s convenient, it s cheap, and it tastes good. But the real cost of eating fast food never appears on the menu, was said by Eric Schlosser. Several people in America have become dependent on fast foods. How many of the people who eat this food actually know what is really in the food or how it was made? Others don t think about it, because within ordering, three minutes later a customer can pull up to the window, pay, and get food. It is quick and cheap. The UnitedRead MoreFast Foods : Fast Food Restaurants834 Words   |  4 PagesFast Foods in America Fast food restaurants have always been extremely successful and are experiencing an increase in popularity in America. The ongoing question all consumers have is which one is the best. Everyone has their opinion on which one they like best, but what about the actual quality and health of the foods served? When one is choosing to eat at one of these restaurants, they may just simply choose one without evaluating things such as food quality, prices, and service experience. TwoRead MoreFast Foods And Fast Food Restaurants1458 Words   |  6 Pagesdo not go a day without eating a fast food meal. There has been a significant rise in obesity rates in America as fast food restaurant establishments are becoming more and more popular. It’s no coincidence that as the fast food industry’s popularity is rising; the obesity rates of Americans are rising as well. The reason for the increase in popularity of fast food restaurants is simply because of convenience. Take McDonaldâ €™s for example: they offer consumers food that can ready to eat within aRead MoreFast Food And The Food Meal Essay1440 Words   |  6 Pages A fast food meal may not be so simple after all considering the ingredients that go into a meal. We aren’t fully aware of what all the ingredients are in our food. We just see either a short or a long list of words that is just scientific jargon to us. We do become more concerned of what we are eating if there is a long endless list of contents. One ingredient that we all know if high fructose corn syrup. There are high amounts of it in our fast food which explains why we can get so addicted toRead MoreFast Food1145 Words   |  5 PagesDraft 3 Fast food Obesity is an epidemic that is sweeping over the United States today. It’s affecting both adults and children. With the increase in fast food availability and a decrease in the time most Americans have to prepare nutritious meals at home, it’s obvious why more people are eating at fast food restaurants. Obesity is a growing problem in the United States and more and more children are being affected. But do uneducated families have the right to put the blame on fast food restaurantsRead MoreFast Food1172 Words   |  5 Pagesfailed to recognize the changing trend in customer’s preferences to better tasting, fresher food. This trend led to new sub markets emerging for tastier, fresher and fast food perceived as healthier. A few of the smaller/privately owned competitors (Cosi and Quizno’s) were able to operate in niche markets selling gourmet sandwiches and salads. The emergence of smaller restaurants offering easy access to exotic foods such as sushi and bu rritos created a more specialized niche market. 2) Size and Growth; Read MoreFast Food1915 Words   |  8 Pages1. Executive Summary This report provides an analysis of the international marketing environment of fast- food industry in US and evaluates the international marketing activities of McDonald’s, which is considered a key player. Firstly, the PEST framework is used to analyse external environmental factors influencing the industry. The Porter’s Five Forces framework is utilised to analyse the competitive rivalry within the industry, and its attractiveness for potential new entrants. Key players andRead MoreHealthy Fast Food1003 Words   |  5 Pagestelevision or radio and not be hit with advertisements introducing the latest fast food trend Ââ€" fresh and healthy food options. More often, the media bombards us with slogans such as Subway s common pitch to eat fresh or McDonald s million-dollar advertisement campaign to try the new fruit and walnut salad. Attention has made an abrupt turn from the greasy, deep-fried originals at the fast food chains to more health conscious food choices. Even a documentary of a man named Morgan Spurlock made headlines

Balancing the Budget Free Essays

American Government Balance the Budget When it came to the budget simulator I went in there with a general idea of what I wanted to do, and the results were surprising. I was able to cut the deficit by $256 billion leaving a deficit of only $144 billion. I was not able to completely balance the budget which is disappointing but I made a significant difference. We will write a custom essay sample on Balancing the Budget or any similar topic only for you Order Now It was very difficult to make a balanced budget which I felt was fair but I’m sure many people would feel my cuts and increases were unfair or unwarranted. My biggest area for budget cuts was that of military spending, although it still makes up a large portion of the budget. I cut $208 billion from the military spending mainly because if we were to pull out from the war it would largely lower our deficit. I left the spending for military personnel unchanged because I do not deny that the military is necessary, I do however, doubt that we need all the research at the time simply because the war being fought was no relevant to us and we shouldn’t have been involved. Which brings me to the $80 billion cut from the Iraq and Afghanistan operations. I cut $105 billion from our military operations there and severely debated eliminating it completely, but we do need funding in order to bring our troops home. I eliminated our reconstruction aid there simply because with our country in such a huge problem area we need to focus on fixing our country first. On the topic of military personnel I chose to actually increase the spending towards military retirement simply because they have done a lot for our country and we need to show them support for all they have done. In retrospect I nearly eliminated the budget for foreign affairs, due to the fact that we have our own problems to fix. I completely eliminated the international development and humanitarian assistance, and international military aid budgets. My reasoning behind this is that our development is hurt in terms of economy and yes it is bad that the other countries aren’t as privileged as us but when more money is going into their development than fixing our country it is a serious problem. I won’t go into detail about every field but the last field I want to outline my reasoning behind for cutting spending in is the tax breaks for large corporations and the benefits for the richest 20% of the taxpayers. My main reason for doing this is because we need to stop placating the â€Å"rich† in our country and stop giving them so many ways to continually make obscene amounts of money which many of them will spend on frivolous things and very few give to charity. Giving the rich many tax write- offs and benefits did nothing but hurt this country. This is why I actually increased the benefits given to the bottom 60% of taxpayers by 20%. I cut all corporate tax breaks by 20% simply because the corporations are just as much at fault as the rich for hoarding the money and not returning their wealth. Moving on to the areas where I did actually increase the budget one of the bigger increases and also one of the most important was in the education department; Increasing elementary, secondary, and vocational education budget by 50% and higher education by 20%. The education department has taken severe budget cuts and it is having an adverse effect on our students who will one day bring out a leader to run this country. I would rather not elect a poorly educated person as president thus our system needs as much budget as can be spared. Another area which received a large amount of an increase was Medicare and Non-Medicare health benefits because I personally know how much trouble this industry is in. Having a pre-existing condition and a severe one at that I know how difficult it is to get health insurance and the aid which comes with it can be less than stellar. Hopefully this increase would help promote better health in the citizens of the country. Playing off the medical benefits I also increased the aid to low income families because they are a large backbone to the society. With how the economy is you have families working three jobs and still struggling to make ends meet. This is very unhealthy and actually leads to more cost needed for medical benefits because when people get sick they have to go to the hospital. It was my hope that increasing both budgets would actually balance ut. The final increase I wish to cover is also slightly more of a controversial one and it may not be a modest increase but it is still important. I increased the border security and immigration budget by 50% in hopes that it would help lower the rate of illegal immigrants coming into the country and not becoming citizens. While at first it may be viewed as a heartless thought the truth is that while we allow the immigrants who come to the country and donâ€⠄¢t get citizenship to stay we increase our own expenses. By not being citizens they themselves do not actually pay federal taxes, especially if they work under the table. However, despite not being citizens they are still eligible for our low income aid, and medical benefit programs and this is actually taking away from the citizens and taxpayers who need it. There is also the unspoken fact that without a large amount of illegal immigrants who don’t speak English we could actually cut the spending for production of many products in Spanish and other languages since those who require them wouldn’t be living in the country. While balancing the budget it occurred to me why congress would have so many problems balancing the actual budget; it is difficult to keep everyone happy while maintaining a balanced budget. My cuts were largely from the foreign affairs, the rich and corporate America. The problem is those areas in this current day and age hold a lot of influence and it runs the risk of making a whole lot of people very angry. Congress has to try its’ hardest to create a balanced budget while remaining as politically correct as it possibly can. In short balancing this budget wasn’t as hard on me as it could have been simply because I have thought about this exact topic for a long time. While my budget may not be the most politically correct budget and it may not be completely balanced it did get results, and very significant ones at that. There were probably areas which I could have not increased the budget for or areas which could have been cut a little less but I feel strongly about my decisions and I would stand by them if ever they were questioned. How to cite Balancing the Budget, Papers Balancing the Budget Free Essays When it comes to the balancing of the budget, there are two words that can be used: good luck. In reality, the budget of the United States has been balanced at very few times in history and there are a number of reasons for that. In fact, to completely list all the reason throughout history would be next to impossible so it is best to examine the current budget based on the recent history associated with it. We will write a custom essay sample on Balancing the Budget or any similar topic only for you Order Now In the 1990’s, the deficit of the budget had grown to enormous levels. Under President Bush 41 the deficit had become significant and this was a major factor in his re-election loss. President Clinton did not effectively address the deficit properly and his huge tax increase combined with a potentially enormously expensive health care bill led to his democratic congress losing the mid-term election. This later led to major budget showdowns between the White House and the Congress and this led to numerous vetoes and government shutdowns. Shockingly, out of this chaos the budget not only ended up balanced, but a surplus emerged! This surplus, however, was to be short lived due to the unpredictable nature of the roles that will be required of government. Part of the problem with budget reforms centers on the fact that there are a great number of situations that make predicting spending impossible. For example, no one expected to be attacked on 9/11 and this set the wheels in motion for two wars in the Middle East. Of course, the wars are not â€Å"free† and this means that there will be significant costs associated with the wars. Now, this leads to the problem that simply because there are war actions occurring internationally that does not mean that domestic spending must be stopped. Yes, there will be a certain amount of cuts here and there, but the baseline costs of the Balancing the Budget Page 2 function of the government will also play a huge role in domestic spending as well. As such, the ability to bring a budget under control can be a somewhat difficult issue. Of course, there is also the very contentious issue of earmarks and pet projects. Sadly, a huge part of our government revolves around purchasing votes and that means enormous spending on seemingly illogical and unnecessary programs. This has been a major bone of contention to the American people, but politicians generally had the ability to hide it better in the past hiding pork within the pages of unrelated bills. Politicians, however, are learning the hard way that in the world of the internet and 24 hour cable news channels hiding such items is not as easy as it used to be! However, it is doubtful that earmarks and pork barrel spending will ever stop anytime soon. When it comes to providing logical solutions to balancing the budget while maintaining defense spending and domestic programs the answer is simple: revenue. How to acquire revenue is another matter. Some suggest tax cuts and others suggest tax increases†¦and both often do so out of ideological reasons and not out of clear examination of the goals and the ways to achieve the goals. So, ultimately, the answer still remains in increasing revenue to the federal government and there are a number of ways to attempt this, but only by putting a plan into action can one see whether it does or does not work. So, it is impossible to make a statement of how to fix the budget without drawing up a solid plan and then testing it in action. Bibliography Bierbaur, Charles. â€Å"Gingrich Optimistic about Balancing the Budget. † 8 February 1996 Retrieved 12 November 2007 from http://www. cnn. com/US/9602/budget/02- 08/index. html Madison, J. , Hamilton, A. , and Jay, J. (Date Unknown) THE FEDERALIST PAPERS. Retrieved 4 September 2007 from http://patriotpost. us/fedpapers/fedpapers. html Scheikart, Larry. A PATRIOT’S HISTORY OF THE UNITED STATES. New York: Penguin, 2007. Zinn, Howard. A PEOPLE’S HISTORY OF THE UNITED STATES. New York: Harper’s, 2007. How to cite Balancing the Budget, Papers

Strategic Management on Qantas Airway free essay sample

This report is going to provide a fundamental analysis inboth external and internal factors that influence Qantas Airway in competing in the aviation industry. The PESTEL framework is applied to identify how issues in the political, economic, social,technological, environmental and legal environment may affect the industry within which Qantas operates. Moreover, Porter’s five forces model also helps identify the attractiveness of the airline and aviation industry related to five competitive forces: the threat of entry, the threat of substitutes, the power of buyers, the power of suppliers and the intensity of rivalry among competitors in the existing industry (Johnson, Whittington amp; Scholes 2011). The external analysis is essential to determine Qantas’ opportunities and threats. Whereas the internal analysis includes understanding Qantas’ resources and competences that are likely to provide sustainable competitive advantage, identifying Qantas’ competitive position using VRIN model (value, rarity, inimitability and non-substitutability), examining Qantas value chain analysis by evaluating the primary and support activities that the company performs and analysing its weakness and strengths. Finally, Qantas’ generic business strategies are also going to be examined by analysing it strategic statement and objective. Background Information Qantas (Queensland and Northern Territory Aerial Services Limited) is Australia’s largest domestic and international airline. It employs 37,000 staff and provides services across a network that covers 145 destinations in 37 countries (Qantas Airways Limited 2007. It is known as the worlds leading long distance airline, providing pioneered services from Australia to North America and Europe. It was established in the Queensland outback in 1920 by William Hudson Fysh and Paul McGuinnes. The business started with small biplanes carrying one or two passengers. It the first airline that invented business class travel in 1979 which now becoming a global standard (Qantas 2009). Moreover, the airline has served through war and peace to protect and support the nation therefore Qantas has been recognized as ‘Spirit of Australia’ with the red kangaroo logo that gives a strong brand image. Today, Qantas is widely regarded as one of Australia’s strongest brands with a proud history of reliability, excellent customer service and safety. It provides international as well as domestic connectivity and offers premium services including high quality in-flight services, convenient check in, Qantas club, holiday packages and car rental facilities. Its main target market is business travellers. SWOT Analysis Strengths * Extensive network / member of the One World Alliance * Globally recognised brand name and logo * Impressive safety record * Excellent airport locations and facilities| Weaknesses * No plans for expansion * Customer’s quality perception decreased * Higher operating costs than its competitors| Opportunities * Gain strategic position using E-commerce * Increase number of business travellers due to boom in international trade| Threats * Questionable reliability (delays, cancellations, etc. ) * Strong competitors, such as Singapore Airlines (international) and Virgin Blue (domestic) * Rising fuel costs * Increase in government regulations to protect smaller competitors| The above table helps to illustrate the internal (strengths and weaknesses) and external (opportunities and threats) analyses of Qantas airway. Overall, Qantas Airway is a strongly established airline company in the world; however it will need strategic planning in order to tackle potential threats. Further analyses will be conducted for the internal (Porter’s Five Forces) and external (PESTEL model) factors affecting both Qantas Airway and the aviation industry. PESTEL Analysis Using the PESTEL framework, a macro-environment analysis will be conducted for the aviation industry within which Qantas operates. Political In 1990, price and entry restrictions were eradicated due to deregulation of the Australian market. Since then, the Australian government has not directly interfered in the domestic market. However, there are still several political restrictions, such as the foreign ownership levels in Australian airlines. As for the international market, it is still deeply regulated as the access to individual routes is based on over 3,500 bilateral agreements between governments (Dixon 2008). As a result, politicians are able to apply this policy as a barrier to entry for new competitors in the industry. Hence, this gives national airlines a competitive edge. Nevertheless, governments are starting to loosen access restrictions to individual routes. Economic The greatest concern in the aviation industry is oil prices. As fluctuation of oil prices is extremely difficult to predict, airlines are having a hard time controlling fuel costs. Also, in recent years, oil prices have been steadily increasing, which causes a rise in airline operation costs to a critical level. As a result, commercial airlines would be obliged to increase the prices of tickets in order to maintain a sustainable profit margin. Social People are now traveling so much more as compared to during the 20th century as a direct consequence of globalisation. In fact, the aviation industry has contributed to the integration of different cultures by making traveling more affordable, simpler and less time consuming. Technological Due to rapid technological advancement and intense competition among aerospace manufacturers, commercial airlines are now able to use more efficient aircrafts. Airbus has recently created the A-380 which boasts to be a highly efficient plane that can hold 525 passengers and that the use of this plane will increase the returns of the airline by 35% (Airbus 2008). On the other hand, Boeing has created the 787 Dreamliner which is said to save 20% more fuel than a place with similar specifications (Boeing 2008). Qantas has placed an order for 20 A-380 aircrafts, 115 Boeing aircrafts which include the 787 Dreamliner aircraft. With the internet so widely used in today’s society, customers can now purchase tickets using Qantas website or telesales. These new options help to significantly lower airlines operation costs, since companies are required to spend substantial resources in opening new ticket offices. Additionally, the need for intermediaries such as travel agencies can be removed from the equation since customers can now compare ticket prices between airlines online, thus having the ability to organise trips on their own. This direct relationship between customers and airlines help to reduce final ticket prices. Environmental 2% of the total CO2 emissions in the world are contributed by airplanes. Hence, with the development of Air Traffic Management, new fuel efficient routes are being made in an attempt to reduce CO2 emissions by 1. 5 million tons (Eurocontrol 2008). With the invention of more efficient aircrafts, a reduction in CO2 should be possible. Legal Australian law states that the foreign ownership level in Qantas must always be below 50%. This policy may restrict Qantas to raise new resources (Ryan 2007). Qantas also faced some problems in expanding due to regulatory barriers. In 2003 Qantas tried to acquire Air New Zealand. However, it was unsuccessful as regulators from New Zealand claimed that the national economy would suffer a major negative impact due to the merger (Fifield 2003). Porter’s Five Forces Analysis Threat of new competition -Low threat of competition because of high start-up cost, planes/terminals/training. The threat of new competition in the airline industry is low. The high cost of the aircraft and other capital need is the major factor. There is also not much that differentiates airlines so a new entrant can’t come in with new technology and quickly increase market-share. Threat of substitute service -High threat from alternative modes of transport. There are plans to build a high-speed railway from Melbourne to Brisbane via Sydney and Canberra (Rood 2011). This could take a large market-share of Qantas’ domestic flights. The cost of a train trip from Melbourne to Sydney could be under $100, while the same trip by plane is around $300. Bargaining power of customers -There is not a lot that is different between competing airlines. It basically comes down to how good the service is to how much the ticket is. With not much room to maneuver in the aviation industry, Qantas does not have much leverage to retain its user base. The only think Qantas can do is to keep its good image and keep costs as low as possible. The customers can easily go elsewhere and as such have a lot of bargaining power. Bargaining power of suppliers -There are only 2 suppliers capable of producing commercial aircraft that meets Qantas’ needs – Airbus and Boeing. As there are only 2 suppliers that are capable of producing aircraft on the scale that Qantas needs, it does not have much bargaining power over suppliers. Though the orders are generally for more than 20 planes at a time and therefore Qantas gets the planes for a good price. Threat of New Competition -The aviation industry is a very competitive market. Airlines are always looking at new ways to increase their market-share. There is not much Qantas can do to distinguish itself from its competitors in its role as an airline so Qantas focuses more on service and ticket price. Qantas provides a very high level of service and has a very good safety record. The Economic factors are very important to Qantas’ profit. As fuel prices are very high it drives the price of flights up with it. It also makes alternative forms of transport like trains much more favourable. With low bargaining power with suppliers, if the suppliers decide to increase prices then Qantas does not have much choice but to increase ticket prices. Qantas also does not have much bargaining power with customers, hence this presents a problem. Qantas’ Strategic Capabilities Strategic Capabilities| Resources| | Competencies| * Strong Brand Image â€Å"Spirit of Australia† * Outstanding Airport facilities * Frequent flyer scheme| Physical| * Best safety records * Outstanding Customer Loyalty| * High returns on invested capital * A great amount of capital| Financial| * Cost savings from implementation of the Sustainable Future Program * Successful fuel hedging program| * Skilled employees| Human| * Excellent customer service| Qantas has several strategic capabilities that assist the company to maintain its position as the market leader in the aviation industry. Firstly, the company has a strong brand image which is regarded as its distinctive resource since it gives Qantas competitive advantage that others cannot imitate. The Qantas brand is associated with ‘Spirit of Australia’, premium in-flight services, on-time schedules and convenient booking system that all are highly valued by the customers. Qantas also has good reputation for safety. The last serious accident suffered by Qantas was in 1951 and only several minor incidents have been reported in 1960, 1999 and 2008 (Qantas 2009). This is an exceptional safety records considering the number of serious incidents that other airlines have experienced in the last 88 years. Moreover, Qantas has excellent airport facilities including E-ticket and Quick Check-in facilities that are available at domestic airport allowing customers who travel without luggage to save time. Qantas also provides meeting room at Sydney and Melbourne terminal and offers Qantas Club for customers who expect services before flight. This first-rate airport facility might be viewed as Qantas threshold resources required to meet customers’ needs. Qantas Frequent Flyer is the most well-known airline loyalty program in the southern hemisphere. It is estimated that 11,000 new members join the loyalty program every week and it has 7. 2 million members and 500 partners (Chandler amp; Tubman 2012). Qantas Frequent Flyer is one of the dynamic capabilities as this may be imitated by competitors and become standard practice in the aviation industry over time, hence Qantas needs to renew and recreate the scheme to cope with the ever changing environment. Importantly, Qantas has carried on the Sustainable Future Program and fuel hedging to deal with cost pressure. Through this program, Qantas has managed to save $3 billion over a five year period (2003 – 2008) with savings of $747 million during the year 2008 (Qantas Airways Limited 2008). Additionally, Qantas has strong financial management since it has managed to be one of the few profitable airlines worldwide without government assistance. Qantas’ management also successfully maximize return to shareholder after the privatisation in 1995 (Qantas 2010). Finally, Qantas has spent over $300 million in the last 5 years in staff training since Qantas believes that employees are the foundation of the company and motivating them to provide greater service might assist the company achieve its objective of gaining sustainable competitive advantage (Joyce 2012). VRIN Model Analysis Using the Venn diagram to further illustrate the VRIN model Physical Resources A – Qantas brand (Valuable, Rare, Inimitable, and Non-substitutable) B – Airport locations and facilities (Valuable, Rare, and Non-substitutable) C – Frequent flyer scheme (Valuable) Financial Resource D – Financial management system (Valuable, Rare, and Inimitable) Human Resource E – Skilled Workforce (Valuable, Rare, and Non-substitutable) VRIN Data Analysis From the above Venn diagram, it can be concluded that Qantas Airway is in a sustainable competitive position due to its many invaluable resources. Qantas’s Value Chain By using the Value chain analysis it is easy to determine that Qantas implements a premium service with high quality staff, airplanes and service. Qantas relies on being an Australian company with people knowing and trusting its name in regards to quality and safety. It also uses reward programs like frequent flyer points to gain the loyalty of its customers by providing rewards if they can accumulate a certain amount. Qantas has a commanding 65% of all domestic flights in Australia, but loses money on its international flights (Hedges 2011). As pricing is one of the most important factors to differentiate your business from another, reducing costs are very important to Qantas. By procuring new more efficient airplanes like the Airbus A380 Qantas can fly more people for similar fuel costs and therefor increasing efficiency of its fleet. Newer planes also have designs improvements which increase the planes aerodynamics thereby also increasing its fuel efficiency. By training its staff well, Qantas ensures a high level of quality on all its flights. By having proficient staff who can deal with any situation it gives consumers confidence in the company and helps ticket sales. By using a differentiating strategy, Qantas has retained its title of Australia’s largest airline. However it needs to differentiate itself more in the future to compete with other airlines internationally. Qantas’ Generic Strategies Qantas’ services are open to a broad range of customers. The flight routes are many and widespread with no limitations on who can and can’t use them. The competitive scope is therefore broad. Qantas is also a non-budget airline so its costs are relatively higher than some other airlines. Using these two determiners Qantas falls into the differentiation strategy. With airlines, there is not much you can do to differentiate your company from others in the industry. The main differential factors are service and cost. Qantas provides a top-of-line quality service with an amazing safety record of no deaths in over 42 years (Airsafe 2007). Qantas is an Australian icon. As the longest continuously running airline in the world it is a symbol of Australia’s strength and unity. Qantas uses this in its ads featuring choirs singing â€Å"I still call Australia home† all around the world. With the collapse of Ansett in 2001, a large percentage of Ansett’s business went to Qantas and Virgin Blue (now Virgin Australia). With Virgin Blue a new company only founded in 2000, Qantas had a strong position in domestic flights in Australia. Qantas has failed to differentiate itself in the international airline industry as it is losing money on long half flights (Hedges 2011). The domestic sector is the only thing keeping Qantas afloat. Due to Australia’s high labour costs it is hard for Qantas to compete without outsourcing to cheaper Asian maintenance companies. In 2011 there was an incident where all Qantas planes were grounded with â€Å"a daily financial impact of about 20 million Australian dollars† (Spark, Williams amp; Joseph 2011). The workers wanted more pay and job security but the two sides are yet to come to a unanimous decision. Conclusion In conclusion, it is necessary for Qantas to analyse its external and internal factors in determining its business strategy and brand position since understanding external environment such as political, economic, social, technological, environment and legal environment may assist Qantas to understand threats and opportunites. In addition, in order to successfully overcome threats and seize opportuninties, Qantas needs to look into its strengths and weaknesses through analysing its strategic capabilities, value chain activities and competitive advantage. It is believed that having sustainable competitive advantages such as globally recognised brand image, superior reputation, strong financial management, outstanding airport facilities and excellent customer service may significantly assist Qantas to compete and survive in the aviation industry.