Criterion
Maximum Mark
Your mark
Research and analysis of company information
5.0
4.0
Considerations of constraints impacting organisational strategy
5.0
3.75
Application of relevant theories of strategy
5.0
3.75
Development of argument and applied critical thought
5.0
4.0
Written communication & referencing
5.0
3.25
Total marks
/25
18.75
EXECUTIVE SUMMARY
The report has discussesd and appliesd theoretical concepts and principles of strategic management into analyzing the environment context where to Qantas Airways Limited operates.
It shows that, Qantas has a long history and sustainable development but needs to evolve in the global world. ization context, the company has to continue
…show more content…
In 2012, Qantas carries a 44.6% shares of the Australian domestic market and 18% of all passengers travelling in and out of Australia while the respective market segments for Jetstar are 20,7% and 8%. The chart below compares the top 10 international airlines.
Figure 1: Top 10 international airlines in Australia
(Source: ANNA- Airlines Network News and Analysis, 2010)
2.2. Resources and capabilities
- Tangible resources: Establisheding in 1920, Qantas Group has grown gradually and remain one of the largest and strongest in Australian airways industry. During the last 5 recently years, Qantas has steadily expanded its operations by increasing number of aircrafts, passengers, employees and destinations all over the world. Its development can be demonstrated as data below:
Figure 2: Qantas’s resources from 2008-2012 (Adopted from Qantas data book 2012, see Appendix)
Qantas’s total asset increased from $19.7 billion in 2008 to $21.1 billion in 2012. More than half of its assets are from property, plant and equipment which book value at $14.13m at the end of FY2012. Intangible assets values at $610,000.
At the end of FY2012, the corporation had a cash balance of $3.4 billion, and 308 aircrafts from three main suppliers Airbus, Boeing and Bombardiers. The Group has 12 Airbus A380, 30 Airbus A330, 60 Boeing B737, 36 Boeing B747 and 46 Bombardiers.
- Intangible resources:
Qantas has a strong reputation for long history
Qantas capitalized on by increasing its domestic share of the market from 55% to approximately 80%. Qantas management had effectively filled the gap left by Ansett by moving planes from the depressed international routes to the company’s expanded domestic market and by leasing planes from overseas to expand its aircraft fleet by
Rivalry among industry competitors has caused attention to be focused on tariff levels. Airfare prices were at an all time low in 2009. This suggested a strong competitive rivalry based on price differentiation. This price differentiation will cause a dramatic loss in revenue if these prices continue to drop and this would lead to a reduced competitiveness. In an effort to safeguard revenue and reduce expenditure, Qantas has developed a strategy to deal with a change in the external competitive environment. .
In 2011, Qantas suffered complications from inside and outside the brand. Several job cuts and structural changes, their focus on returns to stock holders and not its responsibilities to the share - holders all added to their external issues. The external issues that rose were the increase of new competitors, changes in consumer decision making, the high demand of customers for lower rates and better quality. Lastly, Australians began their international travels with other international brands. 2016 has proven to be a turnaround year for Qantas relying largely on the lowered prices of oil and the falling Australian currency. Qantas recovered from a $2.8 billion loss in 2014 to a net profit of $688 million within six months. The turnaround has been described as “one of the most remarkable in history”
Qantas is Australia’s largest domestic and international airline. Although Qantas is primarily a passenger airline, air freight is also an integral part of its core business. Other Qantas operations include catering, tourism and E-commerce devoted to transport and travel. In order to have an effective business and operations process, a company, like Qantas must be aware of the influences that can affect it. By being aware of the influences it enables the business to make decision and choices that can get the most out of each influence, by doing this it can assist the business in its endeavours for success.
In the local region, Qantas managed to outweigh its competitor by gaining a toll of 65% compared to its competitor. Evidently this shows Qantas is the number one preferred airlines compared to other competitor airlines like Virgin, Tiger Airways and Emirates airlines. However the situation is not the same in South East Asian region as Qantas only managed to obtain about 15% of market share compared to likes of Air Asia who leads the market share with 60% in this region. Conversely, this is not a concern for the airlines as the airlines managed to generate revenue of 5 billion dollars, with a predicted passenger growth of 4.9% which is equivalent to 2.9 billion passengers by 2034.
Recently Qantas has partnered up with Emirates in an effort to channel Europe-bound travellers through Dubai International Airport in a mutually beneficially arrangement, an example of business-to-business geographic segmentation marketing. Qantas encourages tourism by broadcasting the same television and print advertisement to both international and domestic customers with iconic images of Australia. This is a marketing strategy that serves multiple purposes, it stimulates Australian tourism abroad while firmly associating Australia with Qantas and also encourages ‘brand loyalty’ from Australians who wish to support their country. Because of the large variety of airlines both internationally and domestically, Qantas has marketed themselves towards service; they are the only “full-service” airline in Australia.
1) Qantas Airways Limited is the national airline of Australia, it is also the largest airline in Australia. The Qantas Group’s principal business is providing domestic and international air transport services for passengers. Additionally, Qantas owns several subsidiary companies such as Jetstar and QantasLink that also operates flights to domestic and international locations, and Q Catering, a premium full service flight caterer.
It is also their vision ‘to be a great airline that champion’s the Spirit of Australia’ (Qantas.com). Since it is their vision to demonstrate the Australian Spirit to the public, it is vital that they start incorporating practices that reflect this conduct within the
Founded in Queensland Australia in 1920, Qantas has now become Australia 's biggest name in relation to domestic and international airline. Originally registered as the Queensland and Northern Territory Aerial Services Limited (QANTAS). Qantas is widely regarded as one of the world 's top airlines and one of the strongest brands in Australia. Over the years it has managed to build a reputation for excellence in
The major competitor is Qantas Airways Limited which is the largest airline in Australia base on the number in fleet. Qantas has 244 aircrafts and Virgin Australia has 128 aircrafts according to Australian civil aircraft register search on ‘Civil Aviation Safety Authority’ on January 2014.
Qantas is established in the Queensland outback in 1920 and after that it has become biggest domestic and international airline and strong brand in the Australia. It is enrolled as the Queensland and Northern Territory Aerial Services Limited (QANTAS) and the group two airlines brands are Qantas and Jetstar those provides transportation services of the customers. Qantas created its strong brand reputation through deliver safe and secure services, focus on customer services, maintain reliability of operations and focus on maintenance, engineering and technology (Qantas Airways Limited, 2014). Quanta main business aims or objectives are:
Developed By: Edwin C. Darden (director of education law and policy for Appleseed, a law instructor, and managing partner for The Education Advocacy Firm)
Qantas is in the post maturity stage and are trying to renew in the business life cycle. These are shown by the company's profits in the last few years and the plans that have been set out for Qantas future.
Flight Centre describes itself as a global discount flight specialist. Taking into consideration the relative size of the Australian and international operations as well as the availability of information on global environment and competitive factors, for this analysis, it is more appropriate to consider the Flight Centre’s industry environment as “The Australian international and domestic airline
Launched just 8 years ago, today, the Jetstar Group consists of a network of value-based air carriers that deliver high quality air passenger services for budget-minded travelers across Australia, New Zealand and the Asia Pacific region. Beginning with just 400 employees, the company currently employs more than 7,000 people and carries about 20 million passengers a year. To gain some insights into how the Jetstar Group achieved this impressive growth in such a short amount of time, this paper provides a review of the relevant literature concerning the air passenger industry in general and the business strategy used by the Jetstar Group in particular. A summary of the research and recommendations for this company are provided in the paper's conclusion.