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Assessement

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Assessment 1: Evaluate and determine the marketing mix
Submission details Candidate’s Name | | Phone No. | | Assessor’s Name | | Phone No. | | Assessment Site | | Assessment Date/s | | Time/s | |

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Qantas Airlines – Crisis in the Making
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Since the year 2000, Virgin Blue has stormed into the Australian domestic airline scene with great success, quickly capturing 25% of the market with their low-cost pricing strategy.
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As the CEO at Qantas you are worried. Your internal analysts are predicting that Virgin Blue’s market share will likely grow to reach one third of the market by next year if left unchecked. Part of Virgin Blue’s success lies in its clever balance of cheap airfares whilst still retaining profitability.
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Unfortunately, it is virtually impossible for Qantas to compete with Virgin Blue on cost since most of your employees and major capital investments are already locked into long-term contracts. Qantas has also built up a reputation over the years for offering exceptional service. If you are to reduce prices, you will not be able to maintain the level of service you currently provide. The situation is also not helped by the fact that Singapore Airlines, the premier airline in the South East Asian region, has entered the low cost provider business with a new venture called Tiger Airways. Although starting out small, Tiger also has the potential to cut into the low end of the QANTAS’ customer base

Part A:

The challenge is clear: you must build a new low cost airline in order to

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