Qantas Airline Case Study
Essay by Nnaji D-De Mayor • March 29, 2016 • Case Study • 1,361 Words (6 Pages) • 1,596 Views
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Table of Contents
Introduction3
Qantas Auditing, Planning and New Strategy5
Qantas SWOT Analysis5
Qantas Micro Environment Analysis 6
Market Segments Analysis7
Market Positioning 8
Conclusion 9
References10
- Introduction:
Qantas is the world 2nd oldest airline founded in 1920. Qantas is widely recognized as the world's leading long distance airline and one of the strongest brands in Australia. Qantas has built a reputation for excellence in safety, operational reliability, engineering and maintenance, and customer service. (Wilson, 2011)
The Qantas Group's main business is the transportation of customers using two complementary airline brands - Qantas and Jetstar. In addition to operating subsidiary businesses including other airlines as Qantas Link, Jetstar Asia, Jetstar Pacific and businesses in specialist markets such as Q Catering. The Qantas Groups employs approximately 32,500 people serving 182 destinations in 44 countries. (Qantas, 2012)
Qantas Brand.
Qantas is a premium, full-service Australian domestic and international airline that offers benefits such as a global network, First, Business Premium Economy (on A380 and B747 services) and Economy on international services and Business and Economy on domestic services, a leading Frequent Flyer program, inflight meals and entertainment, airport lounges and other services.
Qantas.com is Australia’s leading travel website.
Qantas is a founding member of the Oneworld global airline alliance.
Qantas’ Tasman services are operated by Jetconnect, a wholly-owned Qantas subsidiary based in New Zealand. (Qantas, 2012)
Qantas Structure[pic 4]
(Wiki Invest, 2011)
Qantas in the last economic period had suffered like other airlines from the economic crisis. The economic crisis affected the market demand as well as the yield and capacity. Qantas market share had declineds and proits dropped even with the significant growth in Jetstar. These were the reasons for Qantas to start formal marketing auditing and planning to achieve the new strategy aiming to returning Qantas international division to be profitable again. (Kelly R and Cameron D, 2012)
This report will go through the new strategy and business tools used to analysis the international section of Qantas. This analysis will be both Macro and Micro environment to point out the strength and weakness of the organization as well as the opportunities and threats on the market. At the same time a Porters Five Forces analysis will be conducted to examine the Micro marketing environment. These analysis will be used in setting strategic direction for the company based on the company mission, vision and corporate values.
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- Qantas Auditing, Planning and New Strategy :
Vision
“The Qantas Group’s long term vision is to operate the world’s best premium airline, Qantas, and the world’s best low fares carrier, Jetstar.” (Qantas, 2012)
Objectives:
- Opening gateways to the world.
- Growing with Asia.
- Being best for global travellers.
- Building a strong, viable business to create shareholder value. (Qantas, 2012)
In order for Qantas to apply and achieve its vision and mission, the company will need to start reviewing and analyzing their business in terms of the micro and macro environment using business tools such as Benchmarking, Value Chaining, market research, Porter’s Five Forces, PESTEL and a detailed SWOT analysis:
SWOT Analysis of Qantas
| Strengths | Weakness |
Opportunities | The Qantas Frequent Flyer program is the world's best loyalty program, | High operation cost |
Australian strong currency. | Strong Australian labour union | |
The Qantas Group is a large, stable and profitable enterprise | Geographic of Qantas home | |
Have strong subsidiaries such as Asia Jetstar. | Weak positioned hub | |
Threats | More Australian are travelling to all over the world | Australian market is attracting more competitor |
Competitor such as Emirates airline is very strong with good hub position | Increase of fuel price | |
Member of strong alliance groups | Qantas cannot fly its own aircraft to every port | |
Fuel price increasing | Government intervention. |
Qantas Micro Environment
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The Company
It’s related to the organization structure, departments and performance such as Top management, Finance, R&D, Marketing, Purchasing, Operations and Accounting. For example Qantas had internal auditing to review the deferent department structure and performance and found that the operation cost is high and could be reduce by outsourcing from outside Australia. Also they point out the need of expanding and renew their fleet.
Suppliers
Suppliers provide the resources to produce goods and services and treated as partners to provide customer value.
Qantas procurement policies: That meet specification and are delivered on time at internationally competitive price from financially stable suppliers, Qantas obtain best value for money on the total cost bases. Supplier relationship management is effective and focus on win-win outcomes. Qantas has major supplier like Airbus, Panasonic for the electronic items and also Q- Catering as internal supplier.
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