Comparison and Contrast of Strategic Development Between Virgin Atlantic and Singapore Airlines

Topics: Strategic management, Singapore Airlines, Air New Zealand Pages: 4 (874 words) Published: August 14, 2008
Each of the organization will have their own strategy to operating the business, and the organization are running the business and competing with the competitors. Each organization must develop a strategy that best matches its internal capabilities and its situation with regard to the external environment, economy, customer desire and requirement, each organization may change their strategy from time to time. In the following paragraphs will be comparison and contrast of strategic development in between Virgin Atlantic Airways and Singapore Airlines.

3.1 Strategic Development

Virgin Atlantic Airways and Singapore Airlines are using different strategic development.

3.1.1 Emergent and Intended Strategies

Virgin Atlantic Airways is using emergent strategy development. Emergent strategy comes about through more everyday routines, activities and processes in organizations. It may not be directly to do with development of strategy.

Singapore Airlines is using intended strategy development. Intended strategy is an expression of desired strategic direction deliberately formulated or planned by manager. The implementation of intended strategy is also planned in terms of resource allocation, control systems, organizational structure and so on.

3.2 Competitive Strategy

Competitive strategy is concerned with the basis on which a business unit might achieve competitive advantage in the industry. According to Michael E. Porter mentioned and list out there are three generic competitive strategies which are: cost leadership, differentiation and focus.

Cost Leadership Strategy

In cost leadership strategy, an organization sets out to become the low cost producer in its industry. The sources of cost advantage are varied and depend on the structure of the industry. They may include the pursuit of economies of scale, proprietary technology, preferential access to raw materials and other factors. A low cost producer must find and exploit all sources...
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