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Qantas airways case study
Qantas airways case study
Qantas airways case study
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6.0 EXTERNAL ANALYSIS The industry for Qantas Airways Limited is a company that guides a long distance in airline, which is in international and domestic location. Qantas Airways Limited is a company that established as a world airline that comes from Australia. 6.1.0 GENERAL ENVIRONMENT ANALYSIS General environment was the most environment need to cover up and adapt to doing business, which is the business is stable or not. To determine the general business environment for Qantas Airways Limited company, there need to know a several factor which is the economy, social cultural, global, technological, political-legal and demographic factors. For economic factor, Qantas Airways Limited was stable because the economic in Australia was in good …show more content…
Those make the customers easy and comfortable to buy and do any transaction with them. Just only need to search toward their website. According from Smith, P (2015), he said Qantas Airways Limited was improve their technology to maximize its ticket prices by calculating the most it can charge toward their customer for a plane ticket and also improve in technology power at the airline for them to cloud computing infrastructure by accelerated it. When Qantas Airways Limited always improves their technology, it can be easy to lead the industry because that can be imaged for them by having a rare technology that not easy to imitate by other competitors. Usually, most competitors try making better in any position and try to become leader in the airline industry such as the technology used by …show more content…
The five forces enable us to examine the industrial environment for Qantas Airways Limited operates under this circumstance and it also could affect the airline industry if they have no control for the first priority. First of all, the power of suppliers under the Qantas Airways Limited is stable, which their supplier is a world’s fuel price for their airlines, self-supply fuel and large in their economy of scale. Then for power of customers, is also stable because the Qantas Airways Limited has already built a reputation for excellence in their safety, operational reliability, engineering and maintenance, and customer service. With that strength can opportunities for them to increase the power of customer, automatically it can be a comfort and the first choice for the customers to the services that given, especially when Qantas Airways Limited can put or offer a better price than other competitors that similar like
Qantas is one of the reputed and oldest airlines in the world. Qantas was born in Winston, Queensland in the year 1920. The abbreviation is Queensland and Northern Territory Aerial service limited. It is headquartered at Sydney one of the largest building block in Australia, it is worth 50 million Australian Dollars.
The main factors, which caused Qantas to change was that, the business was under government ownership until 1995, with a classical/scientific management structure. Meaning the business maintained a:
...onclude, the strategies used by Qantas in dealing with these influences have all been relatively effective. The use of technology has been the most effective in providing the business with a competitive advantage and has very little downsides when compared to other strategies. Operations management has dealt with globalisation effectively and greatly reduced costs and provided the business with a competitive advantage at the expense of the business reputation and individuality. Strategies which involve product differentiation have been used very effectively and are beneficial to Qantas. However the more cost leadership strategies that Qantas uses, the more likely that the business will lose it’s own individuality as the “Red Kangaroo”. In general, Qantas has been able to keep it’s business running relatively successfully and has dealt with it’s influences very well.
Qantas is the oldest airline in the English speaking world. It was founded by the three aviation pioneers Hudson Fysh, Paul McGinness and Fergus McMaster as the Queensland and Northern Territory Aerial Service in 1920 and has grown from one aircraft which offered air taxi services and joyrides to a vast, complex fleet operating all over the world. By 1930 Qantas’ air routes had expanded to reach up to North Eastern Australia and was later purchased in 1947 by the Australian Federal Government.
Qantas is the 11th largest airline as of 2014 and ranked 1st in Australia, whose prime function is the quality transportation of passengers and airfreight across domestic and international routes. Qantas has been successful due to its innovative cost controlling of the business in expense minimisation. However as a result of this, the business has undergone capital-labour substitution and the casualisation of the workforce. This developed workers’ concerns of their remuneration, employment conditions and job security which caused the engineers and ground workers disputes in 2011. Qantas has responded to these workplace disputes with the strategies of negotiation, grievance procedures and tribunals within its contractual and legislative grounds.
Since Qantas and Virgin are the only two airlines supplying domestically in Australia, they account for all of the profits in the market and consequently they are in direct competition with each other. Because only two firms are competing, each firm must carefully consider how its actions will affect the other, and how its rival is likely to react. Thus, strategic considerations regarding the behaviour of competitors in this duopoly are essential in order for Qantas and Virgin to set prices. "Game theory is often used as a model to analyse the strategies of individuals or organisations with conflicting goals" (Waud and Hocking 1992, pp.-334).... ...
Qantas International faces both direct and indirect competition, in a highly competitive, global marketplace. Direct competitors to Qantas International are those airlines that market full service international air travel, and the primary direct competitors identified in this market are Emirates and Singapore Airways.
Key stakeholders of British Airways include customers, employees, those who have invested in BA by buying shares of the business as well as corporate organizations. To analyze the stake holders in BA the power/interest matrix (Gardner et al, 1986) can be applied in terms of its power and matrix. Brand reputation, economy of scale and cost control are some the key success factors of BA. In addition to Boston Matrix can position BA’s business in terms of short haul (cash cow business) and long haul (star business).
No matter how a business operates, change is inevitable and affects all businesses. CAMERON SMITH investigates the changes Qantas have had to undergo in order to keep up with their competitors, whilst navigating the challenges of low cost of fares.
In a high competitive world market and with the increasing rational buyers a company can only win by creating and delivering the best customer value than the others competitors do. To succeed, a company needs to use the concepts of value chain.
...its competitors. -Hubbing: With hubbing, flights from various origins on spokes of the network are channelled through an intermediate location, where they change planes and are re-routed to their final destination. This way the airline can serve more locations with fewer planes. -Frequent Flyer programmes: These programmes provide discounts or bonuses to frequent travellers. The value of the bonuses increase as the mileage flown increase, the bonuses can take various forms such as, fare reductions, upgrades to better classes or even free tickets.
Before we discuss government intervention and its affect on an industry’s competition we must first seek to understand the five forces framework. The theory, discussed in 1979 by Micheal Porter seeks to evaluate the attractiveness of an industry. Throughout this essay I will explore the theory and then relate government action and its well-documented affects on the airline industry.
Product Strategy of the British Airways 1.1 Introduction to product strategy Product is the most important component in an organization. Without a product there is no place, no price, no promotion, and no business. Product is anything that can be offered to a market to satisfy a want or a need. It is the core ingredient of the marketing mix and is everything favorable and unfavorable, tangible and intangible received in the exchange of an idea, service or good (Kotler 11th edition, 2003). British Airways is a business offering service products, flights across destinations, in the transportation industry.
British Airways Plc (British Airways or BA) is a full service premium airline with a global route network flying to approximately 400 destinations worldwide. The company provides scheduled air services at both domestic and international level. Its services include flights for passengers and cargo. The company provides air transportation services for over 40 million customers a year and serves 35 million cups of tea, 36.5 million meals and 3.7 million bottles of wine for the passengers. The company operates extensive international scheduled airline route networks in association with its joint business agreement, code share and franchise partners.
During 19991-1992, Modiluft, East West and Damania went bankrupt. Air Sahara and Jet Airways survived along with government own Indian Airlines because they had the capability to bear losses. Globalization and privatization had a major impact on aviation industry. Indian aviation industry was deregulated by the government in 1990s. As a result now 14 airlines are operating today in Indian sky. Now, collaboration with international organization and foreign direct investment are welcome to improve infrastructure and technology. Today people who can not afford high prices of Full Service Carriers (FSC) can travel by Low Cost Carriers (LCC) or budget airlines. Air Deccan was India’s first LCC started in 2003. It flies to several metro and non-metro destinations. All airlines have three major fixed costs i.e. fuel costs, financing or aircraft lease and labour cost. But LCC costs are 10 to 15 per cent lower than FSC. This is because of three reasons. Firstly, saving on distribution cost as passengers book tickets on the internet. Secondly, no frills are offered on board. Thirdly, to accommodate additional seats, catering and cabin crew space in these aircraft has been used. So these aircraft have 40 seats more than the FSC.