The strategic alliance between Qantas and Emirates was a result of a careful analysis of the airline industry and its involving competitors.
Emirates CEO, Tim Clark specified that he has been closely monitoring Qantas until he saw an opportunity for both companies through a strategic alliance, mentioning that Qantas had a problem with its international segment where Emirates could help with (Joyce, 2013). The 5 year strategic alliance does not restrict to code-sharing as it includes collaboration on scheduling, pricing and sales while taking equity in each other company is out of the question, mostly because of the uneven powers between organisations (World News Australia, 2013). Since 2011, Qantas started to restructure its marketing and operations strategy in order to increase its competitive positioning through its 5 year transformation plan with its strategic goal to emerge as “one of the world’s best premium airlines, setting global standards for long haul travel while delivering attractive returns to shareholders” (Creedy, 2013). This goal is focused on 4 pillars:
1. Concentrating on customer experience
2. Emphasising strength on flight frequency to Asian destinations
3. Putting emphasis on existing alliances and extend them for global reach
4. Improving financial management
The benefits for Emirates from this strategic alliance are the access to the domestic market through Qantas by using its commercial strength in Australia. Additionally, in the preliminary meeting Clark specified that the ability to see that the alliance was relatively easy to put together (similar management style) provided a bonus for later stages (Young, 2013). Clark further stated that Qantas is performing better in CSR which could provide assistance ...
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Upe, R. (2013). Qantas derided as the 'flying mosque-a-roo' over pork ban. [online] Retrieved from: http://www.smh.com.au/travel/travel-news/qantas-derided-as-the-flying-mosquearoo-over-pork-ban-20130411-2hmsv.html [Accessed: 19 Dec 2013].
Uren, D. (2013). Cookies must be enabled. | The Australian. [online] Retrieved from: http://www.theaustralian.com.au/business/aviation/emirates-declines-qantas-equity/story-e6frg95x-1226783593530# [Accessed: 19 Dec 2013].
Varley, J. (2013). Qantas + Emirates groups. Business events news, 5th April, p. 1.
World News Australia (2013). Emirates qantas deal: ricardo goncalves reports. [online] Retrieved from: http://www.youtube.com/watch?v=X-jyNhQhDB0 [Accessed: 12 Dec 2013].
Young, A. (2013). Qantas Emirates the global launch. [online] Retrieved from: http://www.youtube.com/watch?v=NxQg1s-DHF4 [Accessed: 16 Dec 2013].
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Qantas has undertaken significant changes over the last decade to cope with internal and external factors such as the terrorist attacks on September 11, 2001 which effectively reduced the demand for international travel. Qantas initially reduced its international travel flying capacity by 11%. Fortunately, the collapse of Ansett which halted domestic competition in the Australian aviation industry which had dropped the bidding price war for consumer finances, softened the blow on September 12, 2001.
One of the many influences that affect Qantas is the presence of globalisation, which has heavily affected the airline both positively and negatively. Globalisation is a process which refers to the increased integration between different countries and economies as well as the increased impact of international influences on all aspects of life and economic activity. Globalisation is responsible for the removal of many trade barriers and the increased level of competition that Qantas has been exposed to. The increased levels of competition has increased consumer sovereignty and forced Qantas to implement strategies to gain a competitive advantage in order to redirect consumers towards their business. Qantas has implemented a cost leadership strategy as a response to globalisation and the influence of cost based competition. One way that Qantas achieved this was by using Globalisation itself to the business’ advantage. Globalisation ha...
It has stayed relevant to the market through its propelled philosophy of relationships to generate profits in the business. Since its establishment in Monroe, Louisiana the once tiny airline has stretched to greater heights serving in 6 continents. It has also established a distinguishable name among its competitors with a reputation of leading customer services. However, even as an established venture, the company needs to maximize its profits in order to stay in business and expand in to new territories beyond its conquered boundaries. A strategic analysis was carried out by our team to establish the company’s current situation. A SWOT analysis was performed to come up with three referenced, strategic alternatives. This alternatives are meant to act as a strategic guidance to the company in order to enhance growth. The strategic recommendation provided will improve and enable the business to cope with the competitors while the implementation of the strategy section will outline the way to go about achieving these alternatives in the business setting. Lastly, we put up a discussion on the evaluation procedures and necessary controls for the
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.
Kathleen Hanser, `The Secret Behind High Profits at Low-fare Airlines'. http://www.boeing.com/commercial/news/feature/profit.html [accessed 15 May 2003]
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.
Recently Qantas has partnered up with Emirates in an effort to channel Europe-bound travellers through Dubai International Airport in a mutually beneficial arrangement, an example of business-to-business geographic segmentation marketing.... ... middle of paper ... ... Indirect Taxes on International Aviation*.
Wharton Unicersity of Pennsylvania. (2007, December 12). Maurice Flanagan’s Emirates Airline: Flying High and Treating Customers like Sheikhs. Retrieved from Wharton Unicersity of Pennsylvania: http://knowledge.wharton.upenn.edu/article/maurice-flanagans-emirates-airline-flying-high-and-treating-customers-like-sheikhs/
Clark, P. (2010, June 8).Europe airlines struggle for take-off as rivals gain speed. Financial Times, p.15.
DuBois, S. (2012, February 17). The real threat facing the airlines - Fortune Management. Fortune Management Career Blog RSS. Retrieved April 29, 2014, from http://management.fortune.cnn.com/2012/02/17/the-real-threat-facing-the-airlines/. Tom, Y. (2009). The 'Standard' of the 'Standard'.
Several large scale, interrelated conditions have affected the airline industry over the past several years in such a manner that every carrier has had to respond in order to remain viable and competitive.
AirAsia Berhad (AirAsia) is a leading Low-Cost Carrier in the Association of Southeast Asian Nations (ASEAN) region. AirAsia focuses on providing high-frequency services on short-haul domestic and international routes. The main goal of this paper is to analyse the business strategy of AirAsia as a low-cost airline. This paper aims to apply the management process of strategy and analyse the three levels of strategy by which AirAsia is able to maintain its reputation as the top Low-Cost Carrier (LCC) in Asia. This paper will then show how innovation is a key aspect in AirAsia’s strategy, and will finally consider the external environment framework in which AirAsia is succeeding.
The Singapore Airlines needs to thoroughly understand the plans being pursued by the British Airways, Cathay Pacific, and Virign Atlantic in improving the comfort and quality of service it provides to its customers. The Singapore Airlines needs to continue differentiate itself by examining the strengths/weaknesses, and key points of these and other competitive airlines.