Question:
Discuss about the Competitive Strategy for Airline Education Industry.
AAA framework strategy is also known as Ghemawat strategy. This is a Global strategy and is composed of triple A. The three A's of the strategy are known as Adaptation Strategy, Aggregation Strategy and Arbitrage strategy. In this assignment the researcher has selected two industries. They are Airline industry and education industry. In the airline industry the researcher has selected Qantas Airways and Emirates Airlines. On the other hand in education industry, the researcher has selected Melbourne University and Harvard University
Background of the companies
Qantas Airways is an Australian Airline and has the largest fleet size. The airline is the third oldest Airline in the world and has both national and international flights (Qantas.com 2016). Qantas Airways has started its operation in the airline industry since 1921, and its headquartered is situated in Mascot in Australia. The airline has employee strength of over twenty-eight thousand employees and generates revenues of 15.8 billion Australian dollars (Qantas.com 2016). On the other hand, Emirates Airline is a Dubai-based airline organization. The organization is relatively younger than Qantas Airline and has started its journey in the year 1985 (Emirates.com 2016). Emirates Airline is the largest Airline in the Middle East and operates in 148 countries around the world. Headquartered of the organization is situated at Garhoud in the United Arab Emirates (Emirates.com 2016). Emirates Airlines has employee strength of over fifty-six thousand and is the seventh largest airline regarding revenue generation.
Melbourne University is an Australian Research University. The University was founded in the year 1853 and is the second oldest University in the world (Unimelb.edu.au 2016). The University has student across the world, and the main attraction of the University is doctoral students. Near about three thousand students are passed every year. The University has different departments like Computer Science, Law, Finance, Arts and Humanities (Unimelb.edu.au 2016). The main campus of the University is situated at Parkville whereas other campuses are located in different parts of Victoria. On the other hand, Harvard University is a private research University, which is situated in Cambridge in the United States of America (Harvard University 2016). The institute was established in the year 1636 and is the world’s most renowned university. It was founded by John Harvard and today the University has over 21000 students (Harvard University 2016). The University has both graduate and undergraduate students.
Analysis of AAA framework
Ghemawat framework helps an organization to create a global value addition in its product or services. According to Dietrich (2015), adaptation strategy used by any organizations help the organization to increase the market share. It is also useful to increase the market share. Aggregation Strategy primary activity is to increase the economic level of any organization. Value proposition and grouping is also a part of Aggregation strategy. Arbitrage is the process by which the organization can benefit them from economic differentiation. The Economic difference of two countries helps an organization to upgrade from the pitfalls.
AAA Framework |
Airline industry |
Educational industry |
||
Qantas Airways350 |
Emirates Airline350 |
Melbourne University350 |
Harvard University350 |
|
Adaptation |
Qantas Airways take help of Adaptation to increasing the value of the organization. The value is added by meeting the local requirement and Global strategy. The flying facility provided by one airline industry is different from that of the other (Drahos and Frankel 2012). Qantas Airways is an Australian airline and provide services which are different from Emirates airlines. 1. Variation strategies: Qantas Airways added different policies to make their service better than that of the other. The training provided by the organization help the employees to understand the job profile and act accordingly (Gomes et al. 2014). Therefore, the customers can enjoy the best service, and this increases the revenues of the organization. The organization has also positioned its service in such a way that everyone can avail their service. 2. Focus: Qantas Airways always remain focus on their activities. The operational manager of the organization always looks after the well-being of the passengers. As the organization operates in various countries, the meal provided in the flight is divided according to the taste and origin of the people (Levenson 2014). Qantas Airways is using this strategy to modify their service according to the requirement of the individual. 3. Externalization strategies: In external strategies Qantas Airways is trying to create alliances and partners with different airline industry like Indigo and Kingfisher to lower the cost (Gould and Power 2015). This process will also help Qantas Airways to reduce the risk involved in the business. 4. Design: Design is also an important activity of Qantas Airways. The workflows among the employees are divided according to their specialization. The air host and hostesses are mainly responsible for the welfare of the passengers while the pilots look after the safety of the passengers (Perlin, Dufour and Brooks 2014). The aeronautical engineers look after the tools and different devices of the flight and check whether it is properly functioning or not. 5. Innovation: Innovation also helps Qantas Airways to improve their services. Latest technology like communication engineering is used by pilots to communicate with the airports and also helps to find out the track of other planes (Trentin et al. 2012). Weather technology is also used by the organization to know about the weather condition and decide route accordingly. |
Emirate Airlines changes their different policies to improve the adaptation strategy. The foods provided by the organization are hygienic and fresh. This helps the organization to have a competitive advantage over others. 1. Variation Strategy: Emirates Airline introduced new materials like light metal bodies to reduce the weight of the flights. This process will help the pilots to fly the plane more easily. A new policy has been implemented where the customers can carry an extra ten kilograms of weight without any extra charge (Gould and Power 2015). All these have made Emirates Airlines as a popular flight. 2. Focus: Emirates airlines always keep focus on the different activities of the organization. The employees of the organization guide the passengers to their respected flight and seat numbers. Any problems of the passengers are solved with care and affection (Perlin, Dufour and Brooks 2014). This process has aroused a positive belief in the mind of the passengers. 3. Externalization strategies: Emirates airlines are always trying to improve the facilities provided to the customer. The organization is also planning to reduce the cost of the organization. As a result of which the Fly Emirates have outsourced their food facility to local suppliers (Trentin et al. 2012). 4. Design: Designing the workflow strategy of the organization is also a challenge for the operational managers. The organization has designed their workflow into three different shifts. Each shift is 8 hours each (Trentin et al. 2012). This process will reduce the work balance of the employees, and they can live a healthy life. 5. Innovation: In the recent days innovation has helped the Fly Emirates to have a competitive advantage over others. The organization has introduced a new app with the help of which passengers can buy tickets over the phone (Fee, K. 2012). This has helped both the passengers and organization to buy and sell tickets easily. |
Melbourne University has also adopted different strategies and policies so that the students can have a better education (Fee 2012). The student at the University is from different places across the world. So to have a proper communication the University follows Adaptation strategy. 1. Variation Strategy: The University has introduced new policies to serve a better quality of education to the students. The fees for the education are also reduced so as to attract a good number of students (Hombert and Thesmar 2014). The university has also made an agreement with the various companies so that the students can have a job immediately on completion of their course. 2. Focus: According to Ramkumar et al. (2013), the main focus of the University is to provide better education to the students. The university believes that proper education will make the students a successful person in the future. 3. Externalization strategies: Melbourne University has contacted renowned professors to provide the best education to the students (Nir 2014). The university also has outsourced the lodging facility to the local people so that the students can have a better lodging and food facility to the students. 4. Design: Melbourne University has designed a new course structure and timings for the students. The students have to attend their classes from 8 am in the morning till 11 am Then they will have a break, and their next session will be from 2 pm to 5 pm. The professors are also allocated class according to the new schedule (Perlin, Dufour and Brooks 2014). All this has created a balance between the teacher and the students. 5.Innovation: Innovative ideas like online teaching will be introduced by the Melbourne University. |
Harvard is the best University in the United States of America. Like Melbourne University, Harvard University has adopted different policies for the betterment of the students. 1.Variation Strategy: Harvard University always remains focused on the better quality of education. The University has an entrance test to select the best quality of students (Forgang 2015). The prices of the courses are also high so that only rich people can get an education in Harvard education. However, Harvard University has the scholarship facility for exceptionally talented students. This facility can also be available to poor students who are exceptionally talented. 2. Focus: The Harvard University along with education also focus on the behavior of the students. Harvard University has introduced a policy where the best student of each semester will be awarded based on their performance, behavior, and attendance (Lee, Yoo and Kim 2016). This strategy has motivated the students to become a good performer. 3. Externalization strategies: Harvard University has helped the student to have a better learning facility. For these, the University has introduced an online training facility free of cost. Along with this, the University has also focused on the lodging facility of the students (Teeratansirikool et al. 2013). Design: Harvard University has designed the routine of the students in a new form. In this new structure, the students have to attend the session from 10 am to 3 pm. A special class will be conducted by a person from the soft skill department to enhance their soft skill knowledge (Forgang 2015). 5. Innovation: Innovation is not so prominent in the University. The university mainly follows traditional style of teaching |
Aggregation |
Aggregation is used by Qantas Airways to develop the economic scale of the organization. Geographic aggregation helps Qantas Airways to improve the economic condition of the organization. Recently the organization is implementing a low pricing strategy of the tickets to increase their sales (Fee 2012). |
Economic scale of Emirates Airlines is also improved with the help of Aggregation strategy. The organization has introduced food and facility according to geographical locations. This was an effective move from Emirates airlines to increase the sale of tickets. |
Aggregation strategy has helped Melbourne University to improve the economic structure. The lodging facility has been outsourced to the residents Ramkumar et al. (2013). This process will help the University to reduce the pressure on the University. |
Aggregation strategy of the Harvard University has further enhanced the economic condition of The University. |
Arbitrage |
Arbitrage is used by Qantas Airways to exploit the difference in currencies of two countries Ramkumar et al. (2013). Qantas Airways take the help of Arbitrage and buy oil from the countries where the price is low. This will help the organization to reduce its costs. |
Arbitrage also used by the organization to reduce the cost of operation. The organization recruits people from places where they can have a cheap labor supply. All these have increased the revenue of the organization. |
Cultural arbitrage is an important part. Students from different culture come to study in the university (Gould and Power 2015). A proper cultural arbitrage will help the students to learn about the different activities which take place in different part of the world through the different segment of people. |
Harvard University has student from different parts of the world. Cultures of the students are also different. Cultural arbitrage helps students to learn about the different cultures in the world. |
Table 1: Analysis of AAA Framework
(Source: Created by the author)
Conclusion
The researcher has thoroughly discussed the "AAA" framework of the Airline industry and the Education industry. The airline industry is mainly focused o the welfare of the customers because this will have a good impact on the business of the organization. Education industries are mainly focused on the quality of the education. Good quality education will improve the quality of the student and a whole the society will be benefitted.
References
Dietrich, F. 2015, "Aggregation theory and the relevance of some issues to others", Journal of Economic Theory, vol. 160, pp. 463-493.
Drahos, P. and Frankel , S. 2012, Indigenous Peoples' Innovation: Intellectual Property Pathways to Development,ANU Press, S.l.
Emirates.com. 2016. Emirates India | Book Flights, Hotels and Car Rental. [online] Available at: https://www.emirates.com/in/english/index.aspx?gclid=CJ6gkOLnhs0CFYoJvAodMKYF3w&gcldata-src=aw.ds&dclid=CLjQqeLnhs0CFUKFaAod3nsBZg [Accessed 1 Jun. 2016].
Fee, K. 2012, "Delivering E-learning. A Complete Strategy for Design, Application and Assessment", Development and Learning in Organizations: An International Journal, vol. 27, no. 1.
Forgang, W.G. 2015;, Strategy-Specific Decision Making: A Guide for Executing Competitive Strategy, M.E. Sharpe, Inc.
Gomes, C.F., Yasin, M.M., Lisboa, J.V. and Small, M.H. 2014, "Discerning competitive strategy through an assessment of competitive methods", The Service Industries Journal, vol. 34, no. 12, pp. 974-998.
Gould, A.M. and Power, T.M. 2015, "Leaving the cocoon: university course design and delivery vis-a-vis competitive strategy", On the Horizon, vol. 23, no. 1, pp. 58-68.
Harvard University. 2016. Harvard University. [online] Available at: https://www.harvard.edu/ [Accessed 1 Jun. 2016].
Hombert, J. and Thesmar, D. 2014;, "Overcoming limits of arbitrage: Theory and evidence", Journal of Financial Economics, vol. 111, no. 1, pp. 26.
Lee, S., Yoo, S. and Kim, D. 2016, "When is servitization a profitable competitive strategy?", International Journal of Production Economics, vol. 173, pp. 43-53.
Levenson, A. 2014, "Organization design and talent strategies for emerging markets", Organizational Dynamics,vol. 43, no. 3, pp. 205.
Nir, A.E. 2014, Educational Superintendent: Between Trust and Regulation An International Perspective, Nova Science Publishers, Inc.
Perlin, M., Dufour, A. and Brooks, C. 2014;, "The determinants of a cross market arbitrage opportunity: theory and evidence for the European bond market", Annals of Finance, vol. 10, no. 3, pp. 457-480.
Qantas.com. 2016. Flights to Australia | Australia travel | Qantas. [online] Available at: https://www.qantas.com/travel/airlines/home/in/en [Accessed 1 Jun. 2016].
Ramkumar, M.V., Nielsen, R.H., Stefan, A.L., Prasad, N.R. and Prasad, R. 2013, "A Joint Allocation, Assignment and Admission Control (AAA) Framework for Next Generation Networks", Wireless Personal Communications, vol. 73, no. 3, pp. 1245-1267.
Teeratansirikool, L., Siengthai, S., Badir, Y. and Charoenngam, C. 2013, "Competitive strategies and firm performance: the mediating role of performance measurement", International Journal of Productivity and Performance Management, vol. 62, no. 2, pp. 168-184.
Trentin, A., Forza, C. and Perin, E. 2012;, "Organisation design strategies for mass customisation: an information-processing-view perspective", International Journal of Production Research, vol. 50, no. 14, pp. 3860-18.
Unimelb.edu.au. 2016. The University of Melbourne, Australia - Australia's best university and one of the world's finest.. [online] Available at: https://www.unimelb.edu.au/ [Accessed 1 Jun. 2016].
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