Assignment Sample on 7BUSS016.1 Strategic Management
Question 1
Resource-based view
Managing and implementing different strategic tools and techniques are useful for every business organization to exploit and identify their available strategic resources. This kind of identification of internal and external resources helps the organizations to ensure high competitive advantages with the presence of high productivity and performance levels (Ramon-Jeronimo, et al. 2019). Resource-based view is one of the effective strategic tools or frameworks that are applied by the modernist business forms such as Delta Airlines to understand their capabilities and sustainability to achieve competitive advantages in a globally competitive marketplace. RBV framework mainly focused on some specific factors such as tangible, intangible, immobile and heterogeneous related resources. Using this RBV tool of strategic management, the business firms become capable to understand its available tangible, intangible, immobile and heterogeneous resources.
Figure 1: Resource-based view
(Source: McDougall et al. 2019)
Tangible resources
In a resource-based view, tangible resources mainly indicate the available lands, equipment, materials, facilities, infrastructure and supplies of the firms. As per the views of McDougall et al. (2019), the resource-based view is a kind of an empirical explanation of a firm that helps to identify its natural resources to satisfy the market customers accordingly. Delta Airlines is one of the famous and largest airline firms in the US. This airline has a huge range of lands or airports within the global marketplace including the US, Asia, Europe, Mexico, Latin America and many more (Delta.com, 2021). In addition, this company has several lands for the purpose of its own warehousing and production units. Different equipment such as sporting and medical equipment are also included within the tangible resources of Delta airlines.
According to Delta airlines, it has a huge range of raw materials such as a huge network for airline support systems, engineering labs, machine shops and fabrication of wire harnesses. The facility of “111000-square-foot” within Atlanta and GA, an “FAA 145 repair station” with proper certification can also be considered as an important material of this airline company (Brandfinance.com, 2021). This famous airline firm has a great supply chain management system while it supplies its products and materials to several suppliers including “Delta AirLine Inc”, “Altria Group Inc” and “Truist Financial Corporation”.
This huge supplier diversity of this company indicates its high equipment capacity and resources that can be considered as its tangible resources. Moreover, the best airline network and cabin crew are also included in the company’s one of the best facilities that inspire its customers to be involved with this company. Smart technological approaches of this firm such as navigation tools, leasing, exchange transaction and consignment program are also kinds of tangible resources of this firm (Deltatechops.com, 2021).
Intangible resources
Delta Airline of the US is one of the most famous airline brands within a globally competitive marketplace that has grown over around 16% from the previous year to almost US$10.1 billion (Brandfinance.com, 2021). However, this firm has faced a typical challenge during the current COVID-19 deficiency while most of the airports remained closed all over the world. Customer experience through contributing more than $12B within airport projects can also be considered as an intangible resource of this firm that indicates a stable
Immobile resources
Intangible and tangible resources of the Delta airline are immobile naturally. Since, there are several replicate and rival resources that indicate an innovative strategic implementation. Therefore, it is important to say that the airline company and most of its resources cannot be transformed from one place to another so easily, which also inspires the immobility of this firm. As per the views of Dubey et al. (2019), through using the RBV, companies can exploit their internal and external risks with the support of a high critically analysing process that helps them to understand their performance level and competitive advantages to satisfy market customers accordingly.
Heterogeneous resources
The high capability of Delta airline’s human resources is mainly included in the heterogeneous resources of RBV. Since, this company is focused on the employer’s training and talent management process with high concern. In this case, it is important to say that the best practices of this company’s human resource management system are capable of bringing ultimate sustainability within its workplace. According to Yiu et al. (2021), the use of RBV or “Resource-based view” has critically analysed the internal and external capabilities of this US airline firm to develop its existing resources with the support of high productivity.
VRIO resources
Understanding the resource-based view of Delta airlines, it is important to say that the available immobility and heterogeneous resources of this company are not enough for its high competitive advantages. Developing the eventual knowledge of this company’s capacity to achieve competitive advantages a VRIO analysis is described below with support of a distinct explanation.
| Resources | Value | Rare | Inimitable | Organized | Advantage |
| Land | Y | N | N | Y | Competitive parity |
| Equipment | Y | N | N | Y | Competitive parity |
| Materials | Y | N | N | Y | Competitive parity |
| Supplies | Y | N | N | Y | Competitive parity |
| Facilities | Y | N | N | Y | Competitive parity |
| Infrastructure | Y | N | N | Y | Competitive parity |
| Brand reputation | Y | Y | Y | Y | Competitive advantage |
| Customer experience | Y | Y | Y | Y | Competitive advantage |
| Relationship between suppliers and customers | Y | Y | N | Y | Temporary competitive advantage |
| HRM skills | Y | Y | Y | Y | Competitive advantage |
| Customer list | Y | Y | Y | Y | Competitive advantage |
| Marketing rights | Y | Y | N | Y | Temporary competitive advantage |
| Copyrights and patents | Y | Y | Y | Y | Competitive advantage |
| Trade names | Y | Y | Y | Y | Competitive advantage |
| Good well | Y | Y | Y | Y | Competitive advantage |
| Computer software, patented technology, | Y | Y | Y | Y | Competitive advantage |
| Franchise agreements | Y | Y | N | Y | Competitive advantage |
Table 1: VRIO Analysis
(Source: Created by learner)
Competitive advantages
Competitive advantages primarily help the business companies to achieve their preferable business position with high-performance value (Alexy et al. 2018). Analysing the US airline’s resource-based view and VRIO analysis indicates its high-quality production, brand value and HRM skills that is capable of increasing its competitive advantages level. On the other hand, there are some forms of this company’s level of a competitive advantage which are mentioned below.
Question 2
Porter’s five forces
| Factors | Analysis | Likelihood |
| The threat of new entrants | The threat of new entrants for Delta Airlines is low as entrance into an aviation industry is a huge hurdle. The aviation business is a capital intensive business; hence, it is not easy for new businesses to enter. The operating cost of the airline business is also very high which is not easier to afford for newcomers. | Low |
| Bargaining power of buyers | The bargaining power of buyers is high as there is a wide range of airlines such as JetBlue, United Airlines, American Airlines and many others, available for customers. Moreover, after the pandemic outbreak and technological advancement, people have been using mobile applications to book flights and prior to that, they compare the prices. Therefore, it is very easy for customers to switch to other companies. | High |
| Bargaining power of suppliers | The bargaining power of suppliers for Delta Airlines is moderate. This is due to the fact that suppliers of resources for airline companies are limited in the country. However, the suppliers of Delta have strong incentives regarding the maintenance of good relationships with this company. Therefore, this aspect can be effective for moderating the prices. As discussed by Larsson et al. (2019), alternate options to avail resources and materials for aviation companies are minimal and affect prices for the same. | Moderate |
| Threat of rivalry | The presence of a wide range of companies in the aviation industry has caused a high threat for Delta Airlines. According to statistics, it has been found that American Airlines has generated revenue of 2890 million US dollars in 2020 (Statista.com, 2021). Moreover, JetBlue has generated revenue of 2539 million US dollars in 2020 while Delta has generated around 2800 million US dollars in that year (Statista.com, 2021). Therefore, it can be stated that the threat of rivalry is very high for this company. | High |
| Threat of substitute | The threat of a substitute for Delta Airlines is low as there is no other business or transport system that can beat an airline transport (Rath et al. 2019). The airline’s travelling services are luxurious, quick as well as highly valued that cannot be replaced by other means. Yet, presently, bullet trains have been developed that are rapidly growing in transport markets. | Low |
Table 1: Porter’s Five Forces
(Source: Created by Learner)
Discussion
The threat of new entrants
The threat of new entrants for Delta Airlines is low as the airline business has been found to be a capital intensive business and the operational costs are very high as well. Moreover, this company has been serving around 200 million people annually, thereby becoming one of the leading companies in the US with a network of around 300 destinations in more than 60 countries (News.delta.com, 2021). Therefore, it can be stated that the selected company has the least threat from new entrants into airline markets.
Bargaining power of buyers
The bargaining power of the customer is very high in the case of Delta Airlines as the cost as well as effort to look for other options is minimal. The advancement of technologies has developed various software applications that have benefited customers to find the companies of their preference easily. As propounded by Azzolina et al. (2021), Company’s websites are used at a minimum by customers for booking flights directly; rather, the apps are used to compare the prices and seat availability. This helps customers to analyze the best ones for them and place bookings accordingly. However, loyalty programs developed by Delta airlines can be effective and helpful to retain its customer groups for a long period.
Bargaining power of suppliers
The bargaining power of suppliers for Delta Airlines is moderate due to the limited number of manufacturers of airplanes globally. It has been found that the manufacturers of aero planes are limited all over the world, yet, buyers of aero planes are very high (Thipphavong et al. 2018). In this context, there is high dependency in airline companies on the manufacturers that leads to high prices of the same thereby increased bargain power. However, it has also been found that Delta Airlines provides good incentives to its suppliers for the maintenance of effective relationships. This increases the loyalty of suppliers towards this company that can be effective for Delta in the long run.
Threat of rivalry
The threat of Rivalry is high for Delta Airlines as the number of aviation companies is high in the US and other countries. There are various companies such as United Airlines and American airlines that provide similar services at a similar price range. This aspect leads to divert customers and the profitability of the company is decreased substantially.
Figure 1: Revenue of Airline companies
(Source: Statista.com, 2021)
Moreover, the revenue generated by United Airlines and American Airlines are 2539 million dollars and 2890 million dollars respectively in 2020 (Statista.com, 2021). Further, Delta Airlines has been found to generate revenue of $2800 million in 2020 (Statista.com, 2021).
Threat of substitute
The threat of substitutes for Delta Airlines is low and this is due to the fact that in the transport system there are no other means available to replace airline transportation. However, with the rapid development of technologies, bullet trains have evolved and this can impact a little.
Analysis
The above discussion can be evaluated as the customers of Delta airlines are loyal and the company has been serving around 200 million customers annually. Moreover, the revenue generated by this company in 2020 is 2,800 million (Statista.com, 2021). Additionally, the operating revenue of Delta Airlines has been adjusted to $8.3 billion as of September 2021 and it has been improved by 30% from that of June 2021 (Ir.delta.com, 2021). Therefore, it can be stated that the company’s strategic management for its services is effective enough for attracting more customers along with retaining them for a long time. Apart from these, customer loyalty programs developed by this company have also been effective for increasing the customer base along with profitability. As propounded by Makadok et al. (2018), effective strategies are beneficial for businesses to increase customer base thereby increasing productivity and profitability.
Question 3
The strategies that governments can take for increasing vaccination among citizens are as follows:
Enhancing public trust towards covid-19 vaccines
The development of the covid-19 vaccines has been found to be a substantial success for the writer world. Moreover, vaccination of most of the population all around the globe is a huge challenge for the government of every country (Thaker, 2021). However, it has been found that the trust of the general public towards covid-19 vaccines can be highly effective to make more citizens vaccinated. Trust towards vaccines is an essential aspect for citizens to reduce their reluctance to get vaccinated. In this regard, the governments of different nations need to interact with the community and discuss the benefits of vaccines along with their effectiveness in the lives of citizens. As mentioned by Thaker (2021), effective communication is required with the community and for that reason, the government can organize various programs to convey their messages and address the community which is reluctant to take vaccines.
There is a small group only that is unwilling to get vaccinated; hesitancy has been evident in countries regarding covid-19 vaccination. Moreover, it has been found that the experience of the people who are completely vaccinated can also be effective for increasing the level of trust among this group (Oecd.org, 2021). In this context, governments can seek help from already vaccinated groups and tell them to share their experience regarding the vaccination and their conditions after getting vaccinated. This can be an effective measure to increase trust among the reluctant groups towards covid-19 vaccinations.
Conducting awareness campaigns for citizens
Awareness is an effective aspect of achieving a specific objective or goal. Moreover, in this regard, the government can increase awareness among the reluctant group by conducting awareness campaigns. Regulatory agencies can take these responsibilities regarding handling the issues consistently along with retaining the confidence of the public (Oecd.org, 2021). Increased transparency in the communication regarding covid-19 vaccines can be an effective measure for the government to generate awareness among the reluctant groups and get them vaccinated shortly. Additionally, during the campaigns government can interact with the citizens and make them understand the deadly affect of different variants of corona virus and after that the effectiveness of the Covid 19 vaccines on the same.
Engagement of the public through coherent communication regarding the misconception of citizens can be highly effective and beneficial to increase awareness. This aspect can be helpful to increase the understanding of citizens regarding covid-19 vaccines. The campaigns can be conducted through social media and other news channels and these can be effective enough to address a wide range of people around the nation and reduce misconceptions of the people regarding covid-19 vaccines. As propounded by Ares et al. (2020), during the campaigns the government also needs to discuss that these vaccines are not merely helpful for reducing the impact of Covid-19, yet, it can also be effective for boosting their immune systems that will be helpful for fighting with various other diseases as well.
Maintaining transparency about the vaccination process
Maintaining transparency about the vaccination process will be helpful for the public who are quite confused about this process. Through maintaining transparency in this process, the government system can inspire them to complete their vaccination process as soon as possible. Increasing the transparent knowledge regarding the importance of these vaccination prices will be capable of enhancing the public interest and confidence to complete their vaccination to protect themselves. As per the views of Deser et al. (2021), preparation for future strategic changes is important to ensure ultimate success with high concern. Therefore, it can be said that maintaining a clear knowledge about the COVID-19 vaccination is capable of increasing the public capacity to prepare for ultimate safety even after a pandemic crisis. As per the views of Rappuoli et al. (2021), a lack of knowledge and transparency about COVID-19 vaccination and its influences is capable of reducing the stability of government laws and regulations.
Developing supply and availability of COVID-19 vaccines
Lack of a proper supply chain of COVID-19 vaccines can reduce the intent of the public to take vaccines. In his case, it is important to say that the governments need to develop their supply policy regarding COVID-19 vaccination to inspire the public to be involved with this progression with support of high concern rather than any negligence. According to Ribas et al. (2021), the availability of COVID-19 vaccines is highly required to save the global public as soon as possible while it has a great negative influence on the global economic and marketing stability.
Providing information regarding the COVID-19 vaccination process and its side-effects
In-depth knowledge and information about the vaccination process and its side effects will be profitable to increase public understanding. In most of cases, the public becomes afraid to take their COVID-19 vaccines due to their lack of knowledge and understanding. Since, there is a contradiction between support and negation about the COVID-19 vaccination process. Descriptive information about the vaccination and its side -effects will be helpful for increasing public awareness to protect themselves from critical health issues. In this case, it is important to say that the governments need to provide proper and descriptive information regarding the vaccination process to enhance public safety awareness in the right direction.
Reduction of COVID-19 vaccination cost
Reducing the vaccination cost can also be considered as an effective strategy to inspire the global public to take their COVID-19 vaccines according to the government requirements. Involvement of high cost reduces the interest of the public to take COVID-19 vaccine while the current pandemic has affected the financial status of the global public by affecting their health and job security. The tendency of avoiding the COVID-19 vaccination is also one of the results of high conflict within the health care sector that increases the stress of governments. Moreover, it is important to say that there is a high requirement in the global marketplace to reduce the cost of COVID-19 vaccination to serve the poor public while they are not capable of taking the costly vaccines for their ultimate safety.
References
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