Strategic Analysis of Qantas Airline

Strategic Analysis of Qantas Airline

Executive Summaries

The aim of this report is to analysis Qantas Airline marketing strategic. There are different factor that affect the success of any organization. To implement the right strategies is key for any success. The nature of airline industry has been changed dramatically due to different reasons. New technology, implementation of different law and arrival of new competitors has made the airline industry more competitive. So the Qantas need effective business strategies to be success in the business.

In this report we have study various internal and external factors that affects the business of Qantas. We have analysis WSOT and PESTLE analysis to find the right strategies for Qantas.

Based on the internal and external analysis we have identify the core competitors, company strength, its weakness and other factors that affect the company. Based on which recommendation has been made for right business strategies

Table of Contents

Introduction 3

Micro Environment Analysis of Qantas Airways 3

SWOT Analysis 3

Porter’s Five Forces Analysis 4

Macro Environment Analysis of Qantas Airways 5

PESTEL Analysis 5

Competitive Advantage 6

Porter’s Generic Strategies 7

Ansoff Matrix 8

Strategic Recommendations 10

Conclusion 11

References 12

Introduction

Strategy Analysis is considered as a major tool to uncover, analyse and evaluate the major business strategies that are the major contributors for the success of business. The main aim of this report is to conduct an analysis on the strategies on one of the major Australian companies, Qantas Airways. Established in the year of 1920, Qantas Airways is regarded has become the largest domestic airways of Australia and international airlines. The main business of Qantas group involves in the transportation of the customers with the use of two complementary airline brands; they are Qantas and Jetstar. It needs to be mentioned that the Qantas Airways has an employee base of 30,000 people and approximately 93% of them is based on Australia. The operation of different brands of the airline can be seen in the regional, domestic and international market. The Australian aviation industry is a major industry that has a number of airlines operating both domestically and internationally. Over the years, there has been major growth in this Australian aviation industry due to the economic growth on the country. In addition, there is increase in the importance aviation industry as Australia is an island

Micro Environment Analysis of Qantas Airways

The following discussion shows the use of SWOT analysis and Porter’s Five Forces Analysis for analysing the micro environment of Qantas Airways.

SWOT Analysis

Strengths

o Strong international as well as domestic presence is a major strength.

o Steady and consistent growth helps in business success.

o Successful cost cutting strategy is another area of strength.

Weakness

o Low profit margin in international flights is a major weakness.

o Limited international presence when compared to the other airlines is another weakness

Opportunities

o The opportunity to tie up with the international airlines can increase the business opportunity.

o Increase in the business travel is creating business opportunity.

Threats

o Increasing price of fuel is a major threat for the business of Qantas Airways.

o Increase in competition in the international airline market is a major threat.

Porter’s Five Forces Analysis

Bargaining Power of Buyers (HIGH): The buyers or consumers have the large option to choose from premium class air travelling services, low cost travelling services and others.

Bargaining Power of Suppliers (LOW): In the Australian aviation industry, availability of large number of suppliers can be seen offering similar kinds of services.

Threat of Substitutes (LOW): There is not any faster medium of transportation that the airlines and it makes this threat lower.

Rivalry among Existing Firms (HIGH): Severe competition can be seen in the Australian aviation industry as Qantas Airways is directly competing with Virgin Airlines.

Threat of New Entry (LOW): In the presence of huge amount of investment, it is difficult for the new companies to enter into this market.

Macro Environment Analysis of Qantas Airways

The following discussion shows the use of PESTEL analysis for analysing the macro environment of Qantas Airways:

PESTEL Analysis

Political: The support of the Australian government towards Qantas Airways along with the warm relationship of Australia with most of the countries like China and others are major political contributors to the success of the company

Economical: Negative effect of Australian government’s liberal aviation policy is a major hindrance for the growth of Qantas Airways. At the same time, decrease in oil price is a positive aspect for Qantas Airways.

Social: Large public trust, support and huge customer base can be seen for Qantas Airways as it is Australia’s national carrier. In addition, domestic partnerships are major boosters of the business of Qantas Airways.

Technological: One critical success factor for Qantas Airways is the investment in technology and innovation. In addition, Wi-Fi and Stan Steaming is major boosters for the success