Qantas Airways Limited Group Essay

IntroductionQantas Airways Limited is an Australian iconic convey lane group engaged in the operation of international and interior(prenominal) air transportation overhauls and the provision of freight work ( foodstuff Line, 2014). The airline also associates its functions with the Jetstar grass, with QantasLink, Jetstar Asia and Jetstar peace-loving grouped under the same moving in (Passport 2013). With a 17.7% grocery store section of international passengers in Australia (Business Monitor, 2011), the party aims to bang its worldwide grocery position finished a demanding and reconstructive approach. The conjunction has already accomplished a notable degree of achieve workforcet loc aloney and internationally with its meaningful competitory positioning and strong alliance with Emirates and previously British Airways. Though with increasing world(prenominal) forces bestowing as challenges for the phone line, Qantas has to adapt to the macro-environmental factor s befittingly in turn with their sexual securities industrying mix. Clarke (2006) stresses that in a oecumenical frugalal struggle, competition is fierce and cost need to be through international eyes, so an arduous epitome of the strategical pillars is needed for the sustain tycoon and betterment of Qantas in the international market.Internal Analysis1.1 Strategic AlliancesFor the improvement of orbicular marketing surgical operation for a company such as Qantas, a orbicular outlook on the affiliation among market condition, marketing policies and programs and consumer response needs to be developed systematically (Davidson, 1983). The application of inseparable factors relating to the strategic approach Qantas has utilise has developed in an enhancement of its global branding in the international aviation market. Qantas tactically formed a strategic 10-year alliance with Emirates on 31 March 2013 (Passport 2013), to further strengthen its global service across v arious regions around the world as well as to improve its system coverage. With its international segment proceed to be loss making (Passport 2013), continueing the international division of market parting with Emirates includes a permanent shift in their network of destinations that includes Europe,Middle vitamin E and Africa which is evidently a geographic advantage for the airline. The relationship deems more than large than a fixed agreement, including integrated network collaboration with coordinated pricing, gross gross sales as well as a benefit-sharing model (Market line 2013). The federation also coincides with their loyalty program, standardising the benefits for customers across both airlines in turn expanding their transmission line partners on a global take.1.2 CompetitorsThe generated link between market sh be and competitors is relatively important, as Hazledine (2011) stresses the more competitors there are, the smaller the market share. By forging an alli ance with an attractive competitor like Emirates, the company has gained a stronger network in Europe, Middle East and Africa, while gaining a competitive advantage in the international aviation market. However, since the formation of this unseasoned strategic alliance, the termination with the previous partnership with British Airways has led to a interpolate in routes and the comprise of its position with Oneworld- an alliance of the worlds pencil lead airlines working as one (Oneworld, 2014) There has been an affix of rivalry 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 three quarters of the routes are shared between double-dyed(a) and the remaining are Qantas monopolies. This deductive reasoning leads to its dominance in the Australasian market being targeted by other 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 digest 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 order to sustain their achievement thus far, the ability to capitalisecosts and expand jaunt options for consumers on a global level leaves Qantas to transform its programme entirely, becoming one of the worlds best premium 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 affordable carriers flying to Australia (IBISWorld, 2014). Its competitors exceedingly influenced the wampumability of the company 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 Global 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 affixd focus on Jetstars expansion into the Australasian region, by building stronger relationships in the effort to replicate the dominant market share of the domestic market to those in the Australasian region. Revenue evidently increased where it eventually reached the stage providing more than 100% of the Qantas groups profits in 2009 (Danaher et al, 2011). Jetstars performance provides an opportunity to focus on Australian traffic into the Asian continent, as demand for low cost carriers remains 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 unceasingly been a major component contributing to cyclical nature of economic activity and the demand for air travel (OConnell and Williams, 2011). With an 18% bill 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 identification numbers. The first passing relates to the cost-cutting strategies which confuse 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 jobs with redundancies and attrition in order to save costs and switch to lower cost providers. delinquent to this predicament this has led to shifting operations and agreements offshore, basing their tasks in Dubai ultimately resulting to the significant number of job cuts associated with the study of the 5-year transformation programme (Mules, 2013).As profit margins are anticipate 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 append 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 emergence 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 bring up to all consumers.2.3 Environmental factorsQantas key priority is the reduction of carbon emissions resulting in fuel burn (Holmes, 2013). Their environmental sustainability ensures the future vitality and maintenance for the company and the carrying out of programs aids them to become a global environmental sustainability leader in the aviation industry (Qantas, 2014). The effect of their corporate social province can be suggested through the application of minimising carbon emissions and carbon footfall 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 reduplicate climate and environmental issues, which ultimately influence the internal mix of the Qantas group.2.4 scientific FactorsThe importance of communication engineering science will always be of import in regards to the tourism and airline industry (Coles and Hall, 2008).The enhancement of customer mother 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 sophisticated browsing tool for freque nt flyer users has been adapted to their global brand strategy in order for the improvement of quality and rewards for customers (Passport, 2013).Additionally, it has been noted that this multiplication 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 society 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 lengthy 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 legal 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 legislation, the manifestation of air servic e agreements primarily dictates the spatial extent of the airline network (Coles and Hall, 2008). Amongst the complexity of the regulation of frameworks the aviation industry appear to regulate in, the requirement of considerable negotiations between global governments must be reiterated in some occasions when regulate their rights to specific routes and air space. Qantas continues to benefit from government protection in the Australia- Los Angeles route, where Qantas and linked 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 embossed was th e compatibility of the Fair Work Act in relation to the Qantas dispute. Forsyth and Stewart (2013) exemplify the issue of 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 enterprise agreements would be set out pertaining Qantas to want 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 na ture in the international segment, Qantas has the growth and potential to abide global forces imposing strategic approaches and marketing strategies.ReferencesCLARKE, Andrew. The future for Qantas still employment Australia home? online. ALTERNATIVE LAW JOURNAL 31 (2) June 2006 97-98.Coles, T and Hall, M.C., (2008) world-wide Business and Tourism Global Issues, Contemporary Interactions., Routledge Davidson, W. H. (1983). 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