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Qantas airways case study
External and internal analysis of qantas
Qantas airways case study
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1.0 Introduction
Paul McGinnis, Hudson fish, Fergus McMaster and Arthur Baird laid the foundation of Qantas on 16th November 1920 in Winton, Queensland in the name of Queensland and Northern services limited. The Qantas Empire Airlines known more commonly as QEA limited was found in the year 1934 by Qantas. It was the first ever Australian national airline.The international flights started in the year 1935. The flight service was further extended to Singapore from Darwin in 1947. Further the year 1958 saw the airlines extending its services from Australia to London through Asia and Middle East. It then started operating flights in big numbers from various airports, Singapore, Auckland, Brisbane, Los Angeles and Heathrow airport in London being the prominent ones. In the present day Qantas has its name among the most profitable airlines of the
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If we need to develop ourselves in the market PESTLE analysis is very important as said by Johnson and Scholes, 1999. it can be used for one 's business position in the market, during his ups and downs. Here under PESTLE analysis has been used to describe Qantas and its working.
To examine and identify the available opportunities in the market a well defined analysis has been done by Qantas helping it know its position better. According to Grant 2013; Martinez & Wolverton 2009, the PESTLE analysis which includes political, economic, socio-cultural, technological, legal and environmental factors will help the industry to find out different fields where it lacks and where it can improve. Like the political factors show favourable conditions for airport slot allocation (Shaw 2011) and also helping out customers with their demands for access to Europe and middles east (Qantas 2012).
Pestle analysis :
Political Enhance open skies and free economic environment
Economic focus on the trade cycle will help in economic
Albers, S. B. (2009, March 13). crisis of Qantas. Retrieved May 14, 2014, from Qantas crisis: http://wenku.baidu.com/view/31572f48cf84b9d528ea7a56
Established in 1920, Qantas is the world's 11th largest airline and the 2nd oldest. It was founded in the Queensland outback as the Queensland and Northern territory Aerial Service (QANTAS) Limited, by pioneer aviators Hudson Fysh, Paul McGinness and Fergus McMaster. Qantas was a former government owned business; it did not view profits or efficiency as its prime goal. In 1993 a 25% stake was sold to British Airways. Qantas was privatised in 1995 and has had to adopt management practices to overcome both internal and external influences and had to change its narrow-minded culture. 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 air travel.
...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.
... amid nations (Gerber 2002, p. 29). Although there has been a major decrease of barriers to trade liberalisation concerning flight amenities in the last century, there are imperative uncontrollable external factors a business must assess and weigh before entering international borders and becoming a prosperous globally identified firm (Ramamurti & Sarathy 1997). Qantas, a highly esteemed patriotic and iconic Australian brand has demonstrated accomplishment intercontinentally. The ultimate success of their business, in order to sustain competitiveness in their global market, will rely heavily on their continuous assessment of combined political and legal reforms, economic dynamics, sociocultural influences, technological modifications and environmental concerns and their interlocking marketing strategies to gain the most beneficial opportunities that come their way.
Despite the growth in the market, Qantas International’s market share has been falling over the past 10years, from 34% in FY02 to 16% in FY13. The entry of Virgin Australia in 2000 in part explains this, however Virgin’s growth also coincided with the demise of Ansett in 2001 “… Virgin Blue will initially increase capacity on existing routes while evaluating what c...
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.
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.
To identify the issues and problems that the company is facing and how the company incorporates into its business strategy the major trends that concerns air delivery business.
The aim of this report is to carry out a strategic analysis of Ryanair. This will involve investigating the organisation’s external environment, to identify opportunities and threats it might face, and its strategic capability, to isolate key strengths and any weaknesses that need dealing with. Finally, a SWOT analysis will be carried out to assess the extent to which Ryanair’s strategies are suitable to what is happening in its task environment.
The base closure was attributed to cost-cutting measures by parent company Qantas as well as increased competition from the re-introduction of flights by Asian carriers into Darwin airport. On 28 April 2009, Jetstar commenced daily direct services from Auckland to the Gold Coast and Sydney. On 10 June 2009, Jetstar commenced domestic New Zealand flights between Auckland, Wellington, Christchurch and Queenstown using Airbus A320 aircraft; services to Dunedin commenced later. Jetstar replaced Qantas subsidiary Jetconnect on these routes.
As the UAE is made up of 7 Emirates so each of them have their own governmental organisations which allows for the smooth running of their economy.Dubai occupies the vice presidency,second after Abu Dhabi which has its own law so its also a primal location.It is politically safe with low crime rate.
Every company in the market has to face the different challenges and try to cope with the challenges to come up with the strong idea to stay and survive in the market. Market is getting tougher and there are different factors which effect on the company policies and the strategies which the company is looking to apply. Some factors can be managed by the skills of the companies and can be tackled. These factors called internal factors but there are some factors which are very hard to tackle. They are out of control of the company but the alternative actions can be taken to avoid the consequences of the impacts. To analyze the external factors which are affecting the Air India airline, the pestle analysis can be used.
The airline industry is very susceptible to changes in the political environment as it has a great bearing on the travel habits of its customers. An unstable political environment causes uncertainty in the minds of the air travellers, regarding travelling to a particular country.
Airline industry is affected by no. of factors such as fuel price fluctuations, high fixed costs, strong influence of external environment and excessive use of marginal costing by carriers. Recessions in the industry tend to last longer, while recovery periods are generally shorter. Over the past nine years, it is observed that industry has made losses for five years and during the profitable years margins were on a lower end. The airlines industry is acutely sensitive to external events such as wars, economic instability, government policies and environmental regulations.