Analysis of Qantas Airline General Environment - Case Study Example

Qantas Airline Case Study Name Institution Qantas Airline Case Study Analysis of Qantas Airline general environment More significantly, Qantas Airline internal and external strategies are based on creativity and sustenance of competitive advantage in the highly competitive airline industry, which underlies success of the company in the newly established and existing markets that are characterized by increased competitiveness (Australia Bureau of Statistics, 2002). In most cases, Qantas Airline, as the airline industry, has established a highly structured management system that focus on enhancing high level of customer service and loyalty reward within its transportation networks, as it serves a wide variety of clients. More so, the company has achieved increased success. Being a global brand, it seeks to create and maintain a fit within new marketing environments, by upholding a tighter fit within its existing market than its competitors (Brand, 2011). As a result, the company seeks to continuously introduce new improved systems to its target market, including the automatic check-in systems, besides the extensive passenger’s lounge that act as a means of boosting efficiency in customer handling and satisfaction. More considerably, the services and products offered by Qantas Airline seek to maintain strong business performance inspired by its identical safety record (Gross and Schröder, 2007). As an increasingly growing company, Qantas Airline is in an attractive general environment because it has increased its strengths as it has well-established middle class with vast travels based on business, along with holiday adventures, thus enhancing the use of the airline. In addition, the company is enriched as it is undergoing a period of significant transformation. This is because it maintains a competitive advantage within the fast growing and changing global market (Plunkett, 2007). Qantas Airline Company is also increasing its market segment as it has incorporated not only long haul travel for its customers by setting global standards, but also a café for its customer to meet their demands, leading to attractive returns to shareholders. On the other hand, Qantas Airline Company faces increased opportunities in its increased market size as more consumers seek to find new airlines in Asia and Africa growing markets (Wilson, 2003). Nonetheless, the company faces an increased threat from the increasing competition from new and existing airline providers including Virgin Blue and Malaysian Airlines. In addition, Qantas Airline Company faces the threat of maintaining a high level of profits that will meet the continuous shareholders demand, while maintaining customer’s needs and expectations. This is because the airline market brand loyalty appears to vanish within the industry when price differences are noticeable (Hanson, 2010). Considerably, Qantas Airline Company remains attractive as a growing company that has achieved increased market opportunities because of its well-established market presence within its target market, as a leading airline service industry (Davis, 2011). More significantly, the company can enhance its growth using its pricing, placement, promotional and product strategy, so as to enhance increased number of customers, considering that its targets include the wealthy elite high-class customers, middle class and low-class consumers in its regional markets. More uniquely, it is essential that the airline uses the low-cost value chain as the travelers pay for what they receive on board and management have low staff cost and reduce maintenance issues (Qantas Airline, 2012). Analysis of the airline industry As other industries, the airline venture remains viably competitive because its businesses operate in environments that are undergoing continuous experiences of dynamic changes and, as a result, many companies are striving hard to remain competitive. More significantly, the airline industry remains viable despite the economic downturn, as it remains an efficient and time reliable mode of transport, associated with growth in trade and tourism globally. As an increasingly growing industry, the airline venture is in an attractive investment field because it has not only increased its strengths but also has well-established middle class with vast travels, based on business along with holiday adventures and growing demographics (Australia Bureau of Statistics, 2002). In addition, the industry is enriched as it is undergoing a period of significant transformation within the Asian and sub-continental countries. Nonetheless, the increasing global financial crisis seek to affect the revenue within the airline industry as it poses challenges for most companies since they focus on improving their business practices. More significantly, the increase of the demand for economy class makes the airline industry less profitable, since the business class gives more revenue (Brand, 2011). As a way of maintaining a strategic influence in the competitive market, using a low-cost attractive package, through the newly introduced Jetstar, besides increasing destination venture, ensure sustainability of the industry. More notably, the advancements will see competitors in the industry adapt economies of scale as it operates in a relatively fast-cycle industry that enhance companies in maximization of strategic management of its resources, by allowing maximum potential use of diverse organizational needs. Considerably, focus should be based on enhancing understanding of the successful critical factors within the airline industry, as competitors within the attractive industry focus on maintaining stability in their territory (Qantas Airline, 2012). More significantly, there is a need for airline companies to adapt low cost profitable models that will enable them become more proactive and make better preparation for the increased challenges, in order to increase the rate of success in individual organizations, considering the existence of vast opportunities within the airline industry. Even though, the airline industry encounter environmental and cost challenges, the manufacturers have currently advanced to provide a trend of more fuel efficient and high capacity aircraft, leading to prompt and efficient provision of airline services (Australia Bureau of Statistics, 2002). Currently, companies within the airline industry are undergoing significant transformation, especially as they maintain a competitive advantage within the fast growing and changing global market. As a result, the airline industry remains attractively promising as it provides integrated, efficient and time reliable mode of transport, associated with growth in trade and tourism globally, despite the economic downturn caused by the global financial crisis (Denton, 2011). Qantas airlines core competencies Qantas Airline Company remains attractive as a growing profitable company because it has highly structured system of agencies and companies in transportation networks that serve a variety of clients, thus focusing on customer service, as well as customer incentives and satisfaction (Qantas Airline, 2012). In addition, it provides special care to both the business and economy class through trained professionals who inform the public on the airline services, as a way of attracting and maintaining its customer profile. As an increasingly growing company, Qantas Airline has a well established fleet of aircrafts that are highly accredited, based on its safety measures and entertainment provision on board, best suited for the well established middle class with vast travels, based on business along with holiday adventures (Davis, 2011). In addition, the company is enriched with increased sales competition as it stands out with its highly structured booking systems, through internet and new check-in technology, which shows a significant transformation, especially, as it maintains Qantas Airline competitive advantage within the fast growing and changing global market (Qantas Airways Ltd, 2012). Qantas Airline Company is also increasing its market segment as it has incorporated not only long haul travel for its customers thus setting global standards, but also a café for its customer, leading to attractive returns to shareholders. As one of the leading airline provider, with a high level of competition from Virginia Blue, the strategic decisions made at Qantas Airline Company are mainly influenced by prevailing market conditions, degree of competition, condition of economy and growth targets and interactions with its subsidiaries. Considerably, the marketing mix of Qantas Airline Company is influenced by pricing, promotional, placement and product, depending on the marketing environment as portrayed by low-cost aircraft, through Jetset Travel World introduction that has substantially increased the company profits. More uniquely, the airline uses the low-cost value chain as the travelers pay for what they receive on board and management have low staff cost and reduce maintenance issues. More remarkably, the company has achieved increased success. Being a global brand among other leading airlines, with strong partnership alliance it seeks to create and maintain a fit within new marketing environments, by upholding a tighter on top form within its existing market than its competitors (Hanson, 2010). As a result, the company seeks to continuously increase its services and products through Q catering and Snap fresh with its well established seven outlets best renowned for its catering and frozen meat, increases the company source of revenue. In addition, Qantas has increased its venture as it also operates a holiday travel business through QH tours that run brands, including Qantas Holidays and Viva Holidays. More considerably, the services and products offered by Qantas Airline seek to maintain strong business performance, inspired by its identical safety record. This step is identical through the well-established engineering operations, in large-scale maintenance and repair of its aircrafts as it remains Qantas main goal to maintain high-level safety record. Qantas airline has remained as a viable Australian airline over the years, through its well-accepted advertisement, besides being appreciated by citizens for its excellent customer service. As a well-supported airline domestically, Qantas airline has recorded high-profit growth over time, leading to its highly accredited establishment in its management system of planning, implementation and improvement levels. Strategies Qantas Airline should adopt for the medium term future As a way of ensuring critical success is achievable, it is essential for Qantas Airline management to continuously involve external experts, who have a wider knowledge, experience and skill level, in maintaining the fully serviced airline. In addition, clear goals should always be formulated to enhance the success in both the planning, implementation and improvement levels. This planning process of establishing the Qantas Airline diverse market should consider the competitive advantage of Australia’s geographical positioning in the Asia-Pacific that remains as the fastest growing region in the airline industry. In addition, Qantas Airline should take into consideration the existence of mergers with already established companies, in order to grow its presence worldwide and increase its profitability. Qantas Airline can increase its profits by establishing favourable economies of scale through purchase of large aircrafts that are more fuel efficient, besides enhancing the use of project management skills involving a detailed project plan related to the forecasted project goals (Hanson, 2010).. More significantly, increased bilateral trade liberation increases the market for Qantas Airline beyond the Asia and Pacific region into other worldwide business and holiday destinations. Considering that Qantas Airline remains a renowned Australian airline service among other competitors, there is a need for increased market venture for the low class, middle class and high-class customers. More significantly, the increase of the demand for economy class makes the Qantas airline industry less profitable, as the business class gives more revenue, however, maintaining a strategic influence in the competitive market by the management is essential (Hanson, 2010). Remarkably, this is through the venture of low-cost attractive packages through the newly introduced Jetstar, besides increasing destination venture that ensure sustainability of the industry (Australia Bureau of Statistics, 2002). More notably, the advancements of increasing affordable airlines as Qantas Airline will see competitors in the industry adapt economies of scale in a relatively fast-cycle industry, which enhance companies’ maximization of strategic management of its resources, by allowing maximum potential use of diverse organizational needs. In conclusion, the study of Qantas Airline has shown that the airline industry has grown over the decades and it remains attractive as a growing entity because it has established highly structured system, suitable for establishing sustainable worldwide transportation networks (Hanson, 2010). Considerably, focus should be based on enhancing understanding of the successful critical factors within the airline industry as competitors because the attractive industry focuses on maintaining stability in their territory. As a company in a continuously growing environment the Qantas airline remains viable despite the economic downturn, as it remains an efficient and time reliable mode of transport associated with growth in trade and tourism globally. References Australia Bureau of Statistics. (2002). Year book, Australia. Australia Bureau of Statistics. Australia. Brand, S. (2011), ‘Private equity: Case study: Qantas’, Journal of Marketing. 2, (4): 36-41 Davis, B. (2011), ‘Airlines in the Asia-Pacific: Industry profile’, Journal of Travel. 11 (23):6-21. Denton, K. (2011), ‘Global-Airlines’, World Travel Journal, vol. 34, no. 1, pp.13-17. Gross, S. and Schröder, A. (2007). Handbook of Low Cost Airlines: Strategies, Business Processes and Market Environment. Erich Schmidt Verlag GmbH & Co KG, Deutchsland Hanson, D. (2010) Qantas in the global airline industry, March 2010 file:///C:/Users/hp/Downloads/Assessmetn%202%20-%20Qantas%20Case%20Study%20(1).pdf Plunkett, J. (2007). Plunkett's Airline, Hotel & Travel Industry Almanac 2008: Airline, Hotel & Travel Industry Market Research, Statistics, Trends & Leading Companies. Plunkett Research Ltd, USA. Qantas Airline, 2012, Qantas Sustainability Review 2012, viewed 8th September 2014 http://www.qantas.com.au/infodetail/about/investors/qantas-sustainability-review- 2012.pdf Qantas Airways Ltd, 2012, Mergers and Acquisitions 2012, Alacrastore, viewed 8th September 2014 at http://www.alacrastore.com/mergers-acquisitions/Qantas_Airways_Ltd-1022987 Wilson A. (2003). Marketing research “an integrated approach”, Prentice hall, Pearson education, London Read More