Qantas Airways Limited Group Essay

ingressQantas Airways Limited is an Australian iconic give ventline group engaged in the operation of world-wide and domestic air transportation services and the provision of freight services (Market Line, 2014). The airline also associates its services with the Jetstar brand, with QantasLink, Jetstar Asia and Jetstar peaceful grouped under the same business (Passport 2013). With a 17.7% food grocery carry on of foreign passengers in Australia (Business Monitor, 2011), the political party aims to upsurge its b both-shaped market short letter with a demanding and reconstructive uprise. The company has already accomplished a notable degree of achievement locally and internationally with its significant competitive positioning and untroubled alliance with Emi ranks and previously British Airways. Though with increasing globular forces bestowing as challenges for the business, Qantas has to adapt to the macro- purlieual factors appropriately in turn with their internal m arketing mix. Clarke (2006) stresses that in a worldwide economical assiduity, competition is fierce and be need to be by dint of international eyes, so an arduous analysis of the strategical pillars is needed for the sustainability and emolument of Qantas in the international market.Internal Analysis1.1 Strategic AlliancesFor the progression of global marketing performance for a company such as Qantas, a global outlook on the affiliation betwixt market condition, marketing policies and programs and consumer response needs to be developed frameatically (Davidson, 1983). The coat of internal factors relating to the strategic approach Qantas has applied has developed in an enhancement of its global branding in the international air market. Qantas tactically formed a strategic 10-year alliance with Emirates on 31 March 2013 (Passport 2013), to further strengthen its global service across various regions around the world as well as to improve its system coverage. With its inte rnational segment continuing to be loss making (Passport 2013), retaining the international division of market shargon with Emirates includes a permanent shift in their network of destinations that includes Europe,Middle easternmost and Africa which is evidently a geographic advantage for the airline. The relationship deems more significant than a fixed agreement, including integrated network collaboration with coordinated pricing, sales as well as a benefit-sharing model (Market line 2013). The partnership also coincides with their allegiance program, standardising the benefits for customers across both airlines in turn expanding their business partners on a global level.1.2 CompetitorsThe generated link between market share and competitors is relatively important, as Hazledine (2011) stresses the more competitors there are, the smaller the market share. By beat an alliance with an attractive competitor like Emirates, the company has gained a stronger network in Europe, Middle E ast and Africa, while gaining a competitive advantage in the international aviation market. However, since the formation of this immature strategic alliance, the termination with the previous partnership with British Airways has led to a change in routes and the comprise of its position with Oneworld- an alliance of the worlds leading airlines working as one (Oneworld, 2014) There has been an increase of contention by a number of competing airlines targeting Qantas lucrative international and domestic routes.Hazledine (2011), discusses that the Australian market is predominately duopolistic, with about deuce-ace quarters of the routes are shared between Virgin and the remaining are Qantas monopolies. This implication leads to its dominance in the Australasian market being targeted by former(a) leading aviation companies. The bulk of Qantas sales are from Australasia (Passport, 2013), though has been increasing interests from competing airlines seeking to capture their share hold of the region. However, with the significant investment of the expansion of Jetstar in the Asian territory, the notion of retaining a stronger consumer base will significantly intensify due to the construction of new routes with a code-sharing agreement signed with China Eastern (Passport, 2013).External analysis2.1 Economic conditionsIn parade to sustain their achievement thus far, the ability to capitalisecosts and expand travel options for consumers on a global level leaves Qantas to transform its programme entirely, becoming one of the worlds best reward airlines, setting global standards for long haul travel (Mules, 2013). Though with the fluctuating inconsistencies in the global sphere, this economically impacts on the business itself. Before the economic downturn, the business illustrated the competitive pressures from Virgin Australia and various low-cost carriers degenerate to Australia (IBISWorld, 2014). Its competitors passing influenced the receiptsability of the co mpany with Virgin Blue successfully capturing the market share from Qantas, highlighting 30% 40% lower costs than those of Qantas (Oxenbridge et al, 2010). The combination of the world-wide Financial Crisis (GFC) and the inherent volatility of the aviation industry (Financial Management, 2013), meant that in terms of economic environment, many were seeking to lower and affordable services. Jetstar, a positioned association of the Qantas brand, centres on minimizing costs through operational efficiencies (Oxenbridge et al, 2010).In recognition to this significant investment of Qantas, there has been an increased centralise on Jetstars expansion into the Australasian region, by building stronger relationships in the effort to replicate the paramount market share of the domestic market to those in the Australasian region. Revenue evidently increased where it in the end reached the stage providing more than 100% of the Qantas groups profits in 2009 (Danaher et al, 2011). Jetstars p erformance provides an luck to focus on Australian traffic into the Asian continent, as demand for low cost carriers system high in Asia Pacific (Passport, 2013). Furthermore, the rising oil prices seem to reinstate huge challenges to the economic conditions of a company. They directly impact on the profitability of a business and has forever been a major divisor contributing to cyclical nature of economic activity and the demand for air travel (OConnell and Williams, 2011). With an 18% add-in increase in 2012 (Market line, 2013), it pressurizes on the costs and margin of profitability of the company, which has led to an increase to internal and external costs.2.2 Sociological factorsMoreover, it is important to recognize the severity of income levels across the heterogeneous market, which may influence sociological events. The for the first timeissue relates to the cost-cutting strategies which have been implemented by Qantas, including segmenting businesses, instituting pay freezes and the outsourcing of functions (Oxenbridge et al, 2010). According to Oxenbridge (2010), Qantas slashed thousands of byplays with redundancies and attrition in line of battle to save costs and switch to lower cost providers. Due to this predicament this has led to shifting trading operations and agreements offshore, basing their tasks in Dubai at last resulting to the significant number of job cuts associated with the employment of the 5-year transformation programme (Mules, 2013).As profit margins are expected to increase with pressure, this has been an increasing implication for the company who are still establishing aggressive policies, which is ultimately affecting the suppliers and workers of the business. Furthermore, the second relates to the two-brand strategy Qantas has operated to cater for business travellers and leisure carriers. The study of global trends on an international level must be initiated in order to provide the correct service to diverse ranges of markets. With the ontogenesis of their lower cost carrier Jetstar, the company has applied different ranges of classes to accommodate the social needs of their consumers. By operating the services of premium classes to business passengers and lower fare divisions to those of the leisure travellers, restructures the position to appeal to all consumers.2.3 Environmental factorsQantas key priority is the reduction of carbon emissions resulting in go off burn (Holmes, 2013). Their environmental sustainability ensures the time to come vitality and maintenance for the company and the executing of programs aids them to become a global environmental sustainability attracter in the aviation industry (Qantas, 2014). The effect of their corporate social responsibility can be suggested through the application of minimising carbon emissions and carbon footprint through the introduction of the lower cost fleet, B787 Dreamliner. With its improved fuel efficiency, it is expected to use 20% less fuel (Passport, 2013). Human activities further reiterate climate and environmental issues, which ultimately influence the internal mix of the Qantas group.2.4 Technological FactorsThe importance of communication technology will always be of significance in regards to the tourism and airline industry (Coles and Hall, 2008).The enhancement of customer experience through the disbursement of modernised technology embedded in all carriers of Qantas has led to the rising operations of customers on a global scale. In an article relating to the key issues of the company, Holmes (2013) depicts the rewarding response in relation to the implementation of online and mobile check-in, in-flight entertainment and electronic bag tagging in regards to the intense global competition. The utilisation of an interactive application of RED, as well as the advanced browsing tool for frequent flyer users has been adapted to their global brand strategy in order for the improvement of quality and rewar ds for customers (Passport, 2013).Additionally, it has been noted that this generation of innovations is particularly reliant on information technology (IT) and communications technology (Pansiri and Courvisanos, 2010). In saying this, it is crucial for companies to navigate their views onto the online orderliness to accommodate to a wider market. The functionality of particular social media strategies has aided Qantas to expose the brand in an online approach. With the extensive improvement of new forms and technologies, the continuing implementation of these devices is crucial for company as well as the consumer experience.2.5 Political and lawful factorsReinforcing the fact that Qantas is a multinational company, the operation of its services must run in a highly regulated environment. Through global alliances and government regulation, the manifestation of air service agreements primarily dictates the spatial tip of the airline network (Coles and Hall, 2008). Amongst the comp lexity of the regulation of frameworks the aviation industry appear to regulate in, the requirement of gigantic negotiations between global governments must be reiterated in some occasions when regulating their rights to specific routes and air space. Qantas continues to benefit from government protection in the Australia- Los Angeles route, where Qantas and United Airlines operate as a duopoly (Oxenbridge et al, 2010). Along with other alliances Qantas has tactically initiated, the air space is shared between Emirates, which inevitably upsurged their competition global position.Furthermore, theimplication of job security and the issues relating to Qantas legal dispute has created uncertainty for workers. With Qantas outsourcing their operations at a much lower rate of pay, has seized the attention of unions objectifying this notion. The major issued raised was the compatibility of the Fair Work Act in relation to the Qantas dispute. Forsyth and Stewart (2013) exemplify the issue o f the ability of unions protecting their employees rights and jobs against the global competition of labour and outsourcing of jobs. This meant that in turn new opening move agreements would be set out pertaining Qantas to sought and revise their business strategy in the attempt to bargain with the unions. Nonetheless, this issue of the outsourcing of jobs is an increasing predicament resulting in long-term implications for workplace regulation in Australia (Forsyth and Stewart, 2013).ConclusionIn this strenuous analysis, the difficulty of bestowing challenges faced upon Qantas has led to a tactical approach of forming alliances with the largest competitor in the aviation market. However, the application of internal and external factors must be applied in order to retain their market position. With its dominance of market share in the domestic market and increasing nature in the international segment, Qantas has the growth and potential to endure global forces imposing strategic a pproaches and marketing strategies.ReferencesCLARKE, Andrew. The future for Qantas still work Australia home? online. ALTERNATIVE LAW JOURNAL 31 (2) June 2006 97-98.Coles, T and Hall, M.C., (2008) International Business and Tourism Global Issues, Contemporary Interactions., Routledge Davidson, W. H. (1983). 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