In performing the development of strategies, the strategic managers are required to consider various internal as well as external environment factors because these factors have a direct impact on the performance of the organisation. In this strategic management assignment, the organisation selected in performing its strategic analysis is Qantas Airline. The airline is known as the flag line carrier of Australia and has been known as the most premium airline providing air travel services internationally. The major areas that will be covered within the analysis of Qantas Airline would be its external and internal environment and the ways in which they impact the operational performance of the airline.
Introduction Qantas is one of the largest airlines company founded inAustralia. Qantas is known for the standard air fares and isknown for its domestics and international airlines.
Company is been revenue of more than Company has able to earn the net income worth of the 6 million. Recently company is been facing tough to survive in the businessbecause of the huge competition among the rival firms.
The study will focus on the Qantas marketing strategies in recent years. Apart from that, study will also cover various marketing tools in order to assess the company major loopholes and the opportunities areas. Mission of Qantas is to cater best low fare carrier in a global platform.
Consistent customer service with excellence is another major mission of the company. Lastlycompany is alsofocusing on the safety which is their major priority and wanted to world achieve the best safety practices and reporting.
Marketing Audit tools Qantas is going through very tough phase as the company is very much facing harder to survive in the current competitive scenario.
Company has not been able to garner the large customer base in Asiapacific and Middle East nations because of pricing issues. It is micro analysis and is generally known for internal analysis. This would be helpful for the company byimproving the business without expense of an external consultant.
It help in the understanding the businessbetter address the internal weakness which is high attrition attritions rates and is very much focus on the Australia. On the other hand, capitalizing the opportunities which show that, company has international presence and has high brand value in term of value propositions Bose, The SWOT analysis develops business goals and strategies for achieving them for the companies.
However, it does not give enough scope for the complex issues and does not provide solutions. Handlechner,pp Benefit of using PEST From the above, it has been found that, PESTanalysis is very much helpful in gaining the external influences which affecting the company.
Political scenario of the Australia is very much stable and helpful increasing the high brand value of the company Harrell, Apart from that, PEST analysis will giveenough scope to measure the market growth andposition of the external factors which affecting theQantas.
It is very much simple and is useful tool to analyse the external factors which are influencing the Qantas decision makings Agrawal and Lal, PEST is verymuch useful and relevant for the larger and more complex organisations rather than small or medium sizeorganisations.
Porters five forces model gives the power of supplier, power of buyers and threats of substitutions along threat of new entry. This theory is given by the Michaelporters in and was alsoappointed offer the presidents Ronald Reagan commissions on industrial competitiveness Becker et al.
However, there are some of the major drawbacks it is only used in the large organization and does not focus on the other than competitors factors. Apart from that, the model does not consider non market forces and is only applicable insimplemarketstructures Qantas.
Five forces model Ratings Barging power of suppliers In airline industry, the supplier like Boeing and Airbus are only few suppliers who are being supplying manufacturing the aircraft.
Apart from that there is cartel form in fuel of airlines by Middle east nations which creating problem for the company Bendapudi and Leone, Medium Bargaining power of buyers Buyers have now more options because of the rise in competition in airlines company Bhattacharya and Korschun, As per their affordability and luxury customers can choose their preference of airlines.
High Threat of new entrants With rise in new airlines like Ryan airline Jet airways and Spice jet are taking high market share because of the low pricings strategies which is one of the major threats for the Qantas.
Pricing strategiesof Qantas airlines Source: Since the increases in the cheaper airlinesin Asian nations has created problem for the company Corstjens and Lal, With the help of Pricings strategies, Qantasmacrofactors shows that company is not able to gain high market share inthe internationalmarketsbecause as the people of Asia are very much pricesensitivity.
Therefore, Airline Company which ever is charging lower is option for those airlines Darke et al. Micro Environments factor for Qantas international venture Low salary: As Jet start is known for the economy pricing flights where the salary and wages of the pilot and attendeesare very much low in compare to its competitors like indigo and others.
Lack of technological advancement: Apart from the above, low technological advancement has decreased the customer base of the company Patel, As the international customer like British airways, Etihad Airways and Emirates are some of the major companies are using ICT and mobile apps have to gain the large customer base.A critical strategic analysis of Qantas Airline’s external and internal environment is performed in this report with a view to analyse the impact of such environment on the performance of the airline.
The following paper provides an analysis and evaluation of the current market position of Qantas and the Australian Airline Industry. By assessing the company both internally and externally, this report will assess Qantas’ strengths and weaknesses. market, Qantas and Jetstar have grown to meet rising demand in Asia- Pacific markets, while the markets without significant invested capital. The Group’s portfolio showed its value in a complex market. 04 QANTAS ANNUAL REPORT Disciplined investment in product and service continues to secure record levels of satisfaction from. Dominance in Australian domestic market: Qantas & Jetstar networks 65% market share Qantas owns the 20% of the market share QANTAS MARKETING MIX ANALYSIS PRODUCT Traveling arrangements Freight containers Jetstar (low-cost/budget airline) Qantas introduce the Frrequent Flyer Scheme in late 80s.
Qantas domestic market share dips below 40% Between and , Qantas’ annual share of capacity in the Australian domestic market has decreased from nearly 48% to 39%, however it remains the largest airline. Qantas is steadily losing its majority of capacity in the Australian domestic market; will add flights from Sydney Airport to Beijing Airport in China in Our purpose in this case study is to research the Swot analysis and Porter’s five forces that impacts Qantas, its stakeholders and strategies in the domestic market.
We will look at strength weakness of the Qantas and then also external threats ad opportunities that can affect the company. Jan 24, · Browse Qantas news, research and analysis from The Conversation.
Marketing: A Case Study On Qantas Airline. Figure 1: SWOT analysis of Qantas international (Source: Adcock, , pp) Benefit of using SWOT. Qantas has high market share in the domestic airlines with 2 nd positionbut company rank 11 th position in international regions.
International passenger for major airlines in higher but /5(14K).