SWOT and PESTEL Analysis of Qantas Airways - Case Study Example

Executive Summary Qantas Airways which performs in the different sector of the airline industry is looking towards aiming the people who are price concious. The company has an aggressive marketing strategy and is looking towards becoming a cost leader and differentiator. To ensure efficiency in operation the company has grown its ties with various retailers and is looking towards marketing themselves aggressively. The SWOT analysis also shows that the company has scope for growth. The PESTEL analysis helps to provide the way the external factors are supporting the growth of airlines and the areas the company needs to work on. The company looks to provide different features like no meals for customer who are price conscious and want cheap tickets, more leg space, removing the middle seats and allowing more baggage for business class. The report also provides the customer aimed at and the market segment that the company looks at. The different direction of marketing also provides the different aspect Qantas Airways need to work on so that they are able to improve their performance. Introduction Qantas Airways is a major carrier in Australia and started operations in the year 1990. During its period of service the airlines has grown and covers most destinations in Australia. The major hub for Qantas Airways is Sydney and Melbourne followed by Brisbane, Adelaide, Perth and Singapore (Qantas Airways, 2011). The airlines has a fleet of over 142 planes and covers around 41 destinations which includes 20 domestic and 21 international places. The airline generated a profit of A$253 million in 2011 and with the way the business has grown and people have moved towards airlines the profits are bound to increase (Qantas Airways, 2011). The shift in customer towards faster means of transport and the growth in the volume of travellers using air as a medium isbound to make the business for Qantas Airways grow. Objectives The objectives of Qantas Airways are as follows Mission: To provide quality services to the customer so that they are able to identify the spirit of Australia by ensuring proper facilities and services. For this Qantas Airways is looking towards having the best in house staff and equipments so that they are able to deliver quality services that satisfy the customers. Marketing Objectives: To position the airlines in such a way that it acts as a differentiator as well as provides customer value for money. The company while following this objective looks to ensure that they are able to retain the old customers as well as develop new ones. The company is also looking towards marketing the airlines by adopting different marketing strategy which helps to improve the brand image and ensures that the airlines is able to provide the required services. PESTEL Analysis The PESTEL Analysis helps to understand the manner the external environment has on the airline industry. This will help to understand the effect on the airline industry and will help to take steps accordingly. The analysis will throw light on the various aspect of external factors which have an influence on the working environment and being able to look towards dealing with it in a effective way will ensure that the different players are able to perform well (Bangs, 2002). The analysis is as follows Political: Political factors have an influence on business as it determines the manner the business will be able to take decision. The stability of government at the centre and the policies which have some time to be implemented has ensured growth in business (Oppapers, 2011). Also stability of and stricter norms has ensured that corruption level has come down which has made it easy for different businesses to acquire licenses. This is something which has benefitted the aviation sector as rules have been framed which ensures that they can operate from different destinations. The political stability has ensured that new terminals come up at different places where there were no airports and have helped to improve the business for the aviation sector. Also the political situation has ensured various deals to pass through which has helped the aviation sector purchase new fleet of planes which has ensured better productivity for the airline industry. Economic: Economic factors help to determine the purchasing power of a common man and the growth of the economy which is presently under recession has dwindled the income of individuals (Oppapers, 2011). This has made people reduce their consumption decreased the growth rates. The decrease in the per capita income and GDP is affecting all businesses. This is having an effect on people travelling via planes as they are substituting towards cheaper mode of transport. This also provides an opportunity to tap the low cost conscious customer by having low cost airlines which helps people to commutte from one place to another. The present economic situation has resulted in flights to be empty and the planes are offerings big discounts to attract customers so that their basic cost can be covered. This has made the aviation sector to look towards gaining some advantage from the current economic situation but would want the economy to grow so that they are able to flourish and conduct business in a similar way. Social: The social customs determine the manner the individual shapes their life. With different people from different backgrounds, religion, income level, and habits affect the way a person stays and brings a change in a social outlook (Justin, 2008). The change in the mind set of people and looking towards adopting new business methods and quicker ways to accomplish changes has brought widespread changes. People with changing technology have become more advanced and are looking towards mainitaining the high social standards (Ireland, Hoskisson and Hitt, 2007). The change in the mind set of people has made people to shift towards airline travels. Also, the manner in which the surroundings have influenced the purchasing ability by making customers shift to different modes of transport has increased the business for the aviation sector as it provides an opportunity to tap those. Technological: The manner technology has changed and integration of internet for all business purposes has increased the scope for businesses (Oppapers, 2011). This has made business look towards integrating technology with the changes so that customer satisfaction enhances. Technology has allowed modernization of communication, air traffic management, surveillance, and cargo services being on a rise due to it (Justin, 2008). Technology has shaped the aviation sector as people can get their tickets at the comform of their house instead of standing in queue. This has resulted in people booking their tickets online by visiting the websites and has brought about widespread changes in the way the airlines performed. The development in technology has also enabled the different providers to ensure that there are better services as the ground work can be done quickly. This has helped the aviation sector to ensure that the flights are on time and technology has helped to communicate so that there is improvement in services. This is an area which if the airlines look to tap on will ensure effectiveness in services and ensure that they are able to deliver on their objectives and ensure maximum customer satisfaction. Environmental: The increased government and non government role in controlling environmental pollution has made businesses look towards the model and make the required changes so that they are able to support the changes in environmental demand. Businesses are integrating it in their business process and making the required changes in the working pattern. The aviation sector also looks towards integrating different mechanism so that they have a norm for the environment. The aviations sector has put a cap on the amount of emmission and takes necessary steps by contributing towards the environment. The aviation sector ensures that they plant trees and take necessay steps to protect the environment which have resuted in shaping the manner the airlines performed. Legal: The government has framed laws on the entry and exit of different busines which has influenced businesses and has brought widespread changes in the way business was conducted. This has given push to industried and provides different opportunities for different industries to flourish. The aviation industry has been able to bank on it as it has ensured that more and more flights are available from different destinations where there was no connectivity. The opening up of economies and growing international trade has ensured that the aviation sectors also has flights from different destinations which has thereby affected their working and created a positive effect for the aviation industry. The manner in which different terminals have come up and the growing interface has ensured that the business is able to grow and flourish and the aviation sector had the advantage of it. The PESTEL analysis thereby helps to understand the manner in which the external environment is having an impact on the aviation sector and the manner the airlines have been able to take advantage of it. This is a situation which has equal role on every player in the industry and requires crafting a strategy which enables to face the situation in a better and coordinated way. References Bangs, D. 2002. The market planning guide: creating a plan to successfully market your business, product, or service, Sixth Illustrated edition, Kaplan Publishing Ireland, R. D, Hoskisson, R. E, and Hitt, M. A, 2007. Competing for advantage, Cengage Learning Justin, A. 2008. Airline Industry, Service Sector Management, Business Week Oppapers. 2011. PEST Analysis of Aviation Sector. Research paper, OPpapers.com Qantas Airways. 2011. Qantas Airways. Retrieved on October 15, 2011 from http://www.qantas.com.au/travel/airlines/home/au/en Read More