Analyse the challenges associated with the two strategic alliances Challenges of the Qantas-Airbnb Frequent Flyer Partnership Some of the challenges associated with the Qantas-Airbnb Frequent Flyer Partnership is that through this alliance, the businesses may be impacted by their partner’s bad image, there may be less efficient communication in a larger multinational business and making the alliance work may take time, as well as energy, from core business activities. One challenge of the Qantas-Airbnb Frequent Flyer Partnership is that through this alliance, the businesses may be impacted by their partner’s bad image. For example, if Airbnb has bad press about them, then Qantas may be affected as well because of their association with them. …show more content…
In a large business such as Qantas, there are many people who work in it at various levels. Therefore, when it enters into an alliance with Airbnb, it makes it that there are more people to communicate with to and from each business, which then makes communication take longer within the businesses. For example, when creating a marketing campaign for the alliance, Qantas’ marketing team would need to communicate with Airbnb’s marketing team and because Qantas is such a big businesses, there may be many people that may have to pass a message on until it gets to the right person. Lastly, another challenge may be that the formation of this alliance may cause Qantas or Airbnb to take away time and energy from core business activities. This means that because of the time and energy needed to create the alliance - all the meetings and discussions that took place before and during the alliance - core business activities might be looked over. This is because the focus is shifted away from the core activities and now incorporates the alliance as well. Challenges of the Qantas-Emirates Global Aviation …show more content…
Because of the codesharing involved with the alliance, the other business’ reputation is very important. For example, if a Qantas customer from Australia buys a plane ticket to England, and stops at Dubai to get onto the second half of the trip which is operated by Emirates, the customer’s experience with Emirates may impact on the customer’s view of Qantas’ image. If, for example, the customer service was undesirable on the Emirates flight, then customers may feel that Qantas is a bad company as it partners with a business that has bad customer service. Therefore, one challenge of is alliance is that one business’ flaws may make customers feel that the business’ partners may also be
Albers, S. B. (2009, March 13). crisis of Qantas. Retrieved May 14, 2014, from Qantas crisis: http://wenku.baidu.com/view/31572f48cf84b9d528ea7a56
...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.
... 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.
How can firms minimize or manage the bumps, hurdles, or conflicts that often occur when firms join together in an alliance or partnership?
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.
Many elements of Delta Airlines are described in detail, within this paper. There is a breakdown of the external and internal factors, using external and internal analysis. Porter’s Five forces are used to create the external analysis, and the key factors for Delta are power of buyers, and rivalry. Delta’s competitive advantages are identified as customer service, sustainability, brand image, strong strategic alliances, and corporate travel. Delta’s main issues are the low expansion in international markets, continuous changing of incentive program, and glitches within technology. Delta should expand more into the Chinese and African markets in order to gain market share within the airline industry.
1. Issues 2. American Airlines’ objectives 3. The airline industry 4. Market 5. Consumer needs 6. Brand image 7. Distribution system 8. Pricing 9. Marketing related strategies 10. Assumptions and risks
Difficult to regain trust of existing loyal customers who expected high quality and performance when in competition with other firms in upper trade market.
Alliance with Airbus: - May never be possible given their histories. Certainly isn’t good for the air travel industry.
Porter stated; “for an airline to succeed in the marketplace, it must have a sustainable competitive advantage” (Porter M. E., 2008). The airline industry is the highest competitive industry, and I believe a sustainable completive advantage is essential to succeed in the future of the aviation industry. The competitive advantages that an airline embrace, needs to be based on the airlines strategy and differentiation to competitors. Emirates displays how it has a strategy and how the airline gets ahead of its competitors through how unique it is.
Additionally, deregulation and liberalization has accompanied the globalization of the airline industry, so that companies have had to compete against each other in new markets, as well as to gain entry into new territories. The rise of low cost local and regional airlines has made the competitive environment difficult to maneuver for large, formerly-state-subsidized national carriers. This has resulted in the need for strategic alliances between airlines in order to attempt to protect market shares and profits (Friehe and Curti, n.d.).
Both from the customer and the company point of view, each customer interaction is part of an iterative learning process (Ballantyne, 2004). Further, Yau et al. (2000) advocated that the relationships between business firms and its customers have been constantly encouraged as successful business practices worldwide. The strategy of relationship marketing is of high relevance particularly in the service industries because of the intangible nature of service and their high level of customer interaction (Al-Hersh, Aburoub, & Saaty, 2014). Relationship marketing is defined as the process of engaging in proactively creating, developing and maintaining committed, interactive and profitable exchanges with targeted customers (Haker, 1999). Furthermore, Gronroos (1990) asserted that relationship marketing is to establish, maintain, enhance and commercialise customer relationship so that the objectives of the parties involved are met which can be done by a mutual exchange and fulfillment of promises. Moreover, the implementation of the relationship marketing concept at the operational level refers to relationship marketing orientation (Hau & Ngo, 2012). Relationship marketing orientation indicates the firms’ philosophy of doing business concerning relationship building by propagating developing trust, empathy, bonding, and reciprocity between a firm and its customers (Sin et al., 2005a, b; Tse et al., 2004). Trust is an important element for a successful relationship between the firm and its customers (Berry, 1995). First, trust is an essential component for a successful relationship between the firm and its customers (Berry, 1995). Trust It refers to a willingness to rely on an exchange partner in whom one has confidence (Morgan & Hunt, 1994). Empathy, as a dimension of business relationship, enables the two parties to see the situation from
Introduction This essay is about the situation that Qantas positively involved in the campaign on three recent social issues. Qantas Airways Limited is a flag carrier which ranks top in the airline industry. It is also one of the most influential organization in Australia, which has a good reputation and a valuable brand name. The purpose of this essay is to find out whether Qantas should stand out to express its opinion towards social issues as one of the top influential business in Australia.
Suppliers are the parties that will supply goods and services to the company in continue basis while alliance are the parties that provide the skills and capabilities to a company. AEON has many suppliers from different places and countries. They built a strong trust relationship between the company and suppliers. This can ensure that AEON will be source by quality and quantity products and services all the time. By this, the variety of stocks in Aeon is enough to be offer to their customers. Besides that, this can also ensure the products and services of AEON are in good quality in order to maximize the satisfaction of