Business strategy Assignment Example | Topics and Well Written Essays - 3000 words

Business strategy - Assignment Example Continuous upgradation of its fleet is another area of its core competency. Strategic analysis using PESTEL and Five Forces analysis suggests that Etihad operates in an attractive industry but the buying power of consumers is high due to high level of competition in the industry. However, because of their core strengths, the airline would be able to achieve its goals and mission. There is ample opportunity for growth and expansion and based on its differentiation strategy, Etihad would continue to grow. Etihad has the location advantage also but customer service is not difficult to replicate and hence, Etihad needs to pursue differentiation through the economic support of the emirate. Analysis of the business strategy helps ascertain the location of the organization within the industry environment. Strategy need not be based on rational planning or even conscious making decision assumptions (Mintzberg, 1987). Strategy can be formulated at three different levels – the corporate level, the business unit level and the functional or departmental level. This paper would analyse the business level and the functional level strategy adopted by Abu Dhabi based Etihad Airlines. Sustainable competitive advantage can be created and maintained either through market position or through core competencies (Leavy, 2003). The positioning approach can be evaluated through PESTEL analysis and the generic strategies which would reveal two dimensions of positioning – the industry attractiveness and the competitive strength. The strategic choice should be on how to leverage advantage amidst the competitive environment. The strategic choice should fit with the goals and objectives to gain competitive advantage (Allen & Helms, 2006). Porter asserts that there are three basic strategies and firms perform best by adopting one of them – cost leadership, differentiation and focus (Allen & Helms, 2006). To become an industry leader, the company must be competitive. While