Premium Essay

Qantas' Global Strategies

In:

Submitted By justinzyj
Words 2573
Pages 11
EXECUTIVE SUMMARY
As everyone knows, Qantas is Australia’s largest airline, which is also one of the biggest global airlines in the world. It is committed to creating a reputation for safety, operational reliability and considerate customer service. All of these reputations have been playing a vital role in attracting increasing passengers to be loyal to Qantas. Consequently, Qantas has been becoming one of Australia’s most successful companies in aviation industry. With the rapid development of other competitors in aviation industry around the world, however, some challenges had been generated that Qantas has to overcome. Additionally, the key challenge for Qantas is about its global strategy, which is extraordinarily critical to determine the future of Qantas in the global aviation industry.

To exactly and effectively understand Qantas’ global strategies, this report will be divided by five parts that could gradually make sense of the importance of global strategic management. Firstly, it will briefly introduce the history and growth of Qantas airline. Then this report will explain how Qantas’ global strategy operates. After that, it is going to analyze the nature and drivers of the company global strategies. Last but not the least, this report will analyze the challenges facing the global strategy and give some suggestions to overcome these challenges. More importantly, it emphasizes the importance of global strategic management for all companies in the world, not only for aviation industry.

1. Introduction of Qantas Airline
Queensland and Northern Territory Aerial Services (QANTAS) Limited was established in Winton, Queensland, in 1920 and expanded rapidly as a transportation carrier. Its core competitiveness is to create a reputation for excellence in safety, operational reliability and customer service.

According to Qantas (2008), Qantas culminated

Similar Documents

Premium Essay

Andree

...References Wikipedia. 2013. Target market. [online] Available at: http://en.wikipedia.org/wiki/Target_market [Accessed: 27 Nov 2013 Anh, P. and Anh, P. 2013. Thống kê số người sử dụng smartphone tại Việt Nam 8/2013. [online] Available at: http://seotopten.net/thong-ke-so-nguoi-su-dung-smartphone-tai-viet-nam-82013/ [Accessed: 28 Nov 2013]. Customer Delight Service. 2013. [e-book] http://www.samsung.com/us/aboutsamsung/sustainability/productservices/download/Customer_delight_service.pdf [Accessed: 27 Nov 2013]. Dialaphone.co.uk. 2013. Samsung Galaxy S IV: How it Stands | Mobile Phone Reviews. [online] Available at: http://www.dialaphone.co.uk/blog/2013/03/15/samsung-galaxy-s4-as-it-stands/ [Accessed: 27 Nov 2013]. Education-Portal.com. 2013. Business Buyers: New Buy, Modified Rebuy, Straight Rebuy - Free Principles of Marketing Video. [online] Available at: http://education-portal.com/academy/lesson/business-buyers-new-buy-modified-rebuy-straight-rebuy.html#lesson [Accessed: 28 Nov 2013]. Education-Portal.com. 2013. What Is Consumer Buying Behavior? - Definition, Types & Quiz | Education Portal. [online] Available at: http://education-portal.com/academy/lesson/what-is-consumer-buying-behavior-definition-types-quiz.html#lesson [Accessed: 28 Nov 2013]. Facebook. 2013. Samsung Việt Nam. [online] Available at: https://www.facebook.com/pages/Samsung-Vi%E1%BB%87t-Nam/391699070842477?id=391699070842477&sk=info [Accessed: 28 Nov 2013]. Fullyc.com. 2013. This Guy Asked Samsung...

Words: 891 - Pages: 4

Premium Essay

Qantas

...company is currently looking to diversify and invest into Qantas airlines a company worth approximately $22billion but currently not in the best economic state, suffering substantial losses. The company budget of $500million allocated for this investment needs to be thoroughly reviewed before making any further decisions. The report looks at several factors relating to Qantas airlines and the implications and changes to these factors if Colourful Corporations decides to investment in this company. The issues which may affect this investment decisions are Qantas global strategy, staffing policy, labour union issues, outsourcing of maintenance services, global marketing and advertising strategy, use of global logistics, sustainability, foreign ownership, prospects related to financial status, share price and national sovereignty matters. Due to time constraints this report identifies 1. Qantas global strategy; 2. Global marketing and advertising strategy and 3. Sustainability as the 3 main drivers of reasoning behind the possible investment decision of Colourful Corporation.  Aim The aim of the report is to advise the CEO on the Qantas global strategy, global marketing and advertising strategy and sustainability issues relating to Qantas airlines and the implications of these changes to Colourful Corporations if the company decides to investment in this company.  Factors 1. Qantas Global Strategy The global strategy refers to expansion of certain companies in order to...

Words: 524 - Pages: 3

Premium Essay

Marketing Essay About Qantas

...Unit 401 Marketing | Qantas Assignment | | | | | | | Table of Content: Subjects Page Introduction 3 Marketing Planning and Auditing 4 SWOT Analysis 5 Macro Environment 6 Micro environment 7 Marketing Research and Marketing Intelligence 8 Segmentation 9 Marketing Positioning 10 Buyer Behavior 11 References 12 Introduction: The Airline companies now a day are mainly depending on marketing to attract new customers and to maintain sustainable relationships with them by promotions, Rewards and Loyalty programs. Qantas is one of those biggest and oldest airlines in the world who managed to keep making profit out of their businesses but still need to keep this profit despite all the challenges and competitions they are facing. By Good planning, have a clear company objective and by Analysis Qantas will guarantee keeping its Group in constant level but the world is changing and buys are effected by those changes so Qantas has to keep between its eyes those variables and act based on it. Marketing Planning and Auditing: Marketing planning is a series of activities and systematic processes used after the setup the main objective for an organization and those steps guides how to achieve the organization goals. Marketing Auditing is part of marketing planning process and it is conducted in the beginning of the planning process and it continue analyzing while implementing the...

Words: 2618 - Pages: 11

Premium Essay

Nestle

...1. Introduction There has been a global crisis in the Airline industry in recent times. This is attributed to the hiking in oil prices, large capital requirements (Capital assets) and stiff global competition within the airline industry, such as, the Gulf airline. The effect of the rising dollar has been significantly contributed to the hiking ticket prices of the Australian airline sector. The main Australian airlines have been impacted by the global crisis. This specific article in the Financial Times Review(Clarke & Smith, 2011), discusses that strategically Qantas was facing hard times due to the environment of the global financial crisis and it had embarked on an implementation plan to decrease internal and external flights to counter the effect of hiking oil prices and operational cost. However, in the United Arab Emirates, has been experienced growth and this has a direct concern to the threat of competition to Qantas (Vesperman, Wald & Gleich 2008, pp. 388-394). All these factors above are a contributed force to Qantas to remain competitive. This paper seeks To address the approaches that should be engaged by Qantas that are necessary to ensure ongoing competitive advantages for the future of the airline industry within this hypercompetitive environment. 2. Strategic Management and Strategic Competitiveness Strategic management is a continuous process that involves reviewing and directing the activities of a business and the environment threats and opportunities...

Words: 1516 - Pages: 7

Premium Essay

Quatas

...Title: Qantas and Emirates Alliance Strategy Course Name: Strategy Development and Initiatives Course Code: MGMT20112 Course Coordinator: Daniel Abell Lecture Name: Daniel Abell Tutor: Daniel Abell Students: Ruth Calasan s0235265 Tracy Nguyen s222275 Felipe Gutierrez s0234289 Due Date: 19/08/2013 Date Submitted: 26/08/2013 Word Count: 3500 Words Executive Summary Last 06 September 2012, Qantas had entered a 10-year partnership with Emirates that will go beyond the code-sharing and collaboration in terms of coordinated pricing, sales, and scheduling and benefit-sharing model which aims to jointly deploy one or more resource combinations. An in-depth analysis has been done on what are the internal and external factors that influence Qantas to form an alliance with Emirates. These factors are:           Deregulation of open skies creating economic environment and open equal opportunities for all air carriers Excessive capacity, fuel cost, foreign currency exposure and threat of new entrants. Changes in customer taste and destinations, power of customers and growth of airlines alliances. Heavy investments in railways and telecommunication tools Consumer protection and passenger rights Growing percentage of global emission Airport slots allocations Similarity of resources and services such as Singapore Airlines and Cathay Pacific Improving services for better price Improving power of negotiation between the alliance and suppliers During the analysis...

Words: 7700 - Pages: 31

Premium Essay

Apply Qantas as an Australian Company Increasingly Operating in a Global World Investigating How the Various Macro-Environmental (Uncontrollable) Factors Impact the Marketing Mix (Controllable) Factors.

...Apply Qantas as an Australian company increasingly operating in a global world investigating how the various macro-environmental (uncontrollable) factors impact the marketing mix (controllable) factors. Qantas was founded in 1920 and initially known as the Queensland and Northern Territory Aerial Services Limited (Qantas). It is regarded as one of Australia’s strongest brands and worlds’ leading long distance airline nationally and internationally. Qantas’ business is mainly constructed by the transportation of customers using both their airline brands Qantas and Jetstar as well as operating in other subsidiaries such as Q catering, frequent flyer, freight enterprises as well as other airlines (Qantas, 2013). It employs 33,000 people with 93 per cent of these employees being based in Australia (Qantas, 2013). Recently, Qantas has undergone changes that have threatened and seen Australians question if Qantas will remain an Australian brand. Reports have demonstrated 1000 jobs being cut due to restructuring of international arms as well as the decision to move Australian jobs offshore. Qantas has implemented plans to strengthen international ties particularly in Asia by funding start up airlines internationally. The global market is continuously evolving and as Bernard et al. stated ‘firms that are engaged in international trade are larger and more productive than the ones that serve only domestic markets’ (2007). However, the Federal transport Minister Anthony Albanese has stressed...

Words: 2005 - Pages: 9

Premium Essay

Aviation

...Qantas, known as Queensland and Northern Territory Aerial Services, is the flag carrier airline of Australia. Its main hub is based in Sydney Airport, also known as Kingsford-Smith Airport. In the last decade, Qantas had faced many strategic challenges such as increasing competitions in both domestic and international markets, industrial disputes and the struggle to maintain profits during the global economic crisis. This essay would highlight the biography of Qantas's current status and evaluate the effectiveness of the solutions used to solve the challenges. Currently, Qantas operates in Australia and the Asia Pacific region and is part of the Oneworld alliance. It is able to fly across to 200 destinations in more than 45 countries. This also includes Qantas’ own regional carrier QantasLink and low-fare carrier Jetstar. Moreover, its vision is to be the leader in providing premium and low cost service through Qantas and Jetstar brands respectively (Qantas, 2014). In addition, Qantas has a flexible fleet plan, owning 128 aircrafts that includes 20 Airbus 330, 12 Airbus 380, 66 Boeing 737, 15 Boeing 747 and 15 Boeing 767. It has 33.36K employees and 93% are based in Australia (Qantas, 2014). It also owns a 29% stake in Jetset Travelworld, an Australian travel agency (Benns, 2009). Furthermore, cargo, catering and tourism operations also provide revenue that will sum up Qantas’ total revenue to more than A$15.9 billion (Macroaxis, 2014). The carrier's great strength...

Words: 2271 - Pages: 10

Premium Essay

Qantas Case Study

...Introduction QANTAS is operating mainly domestically and internationally in air transportation company for various types of travelling, such as leisure and business, cargo and logistics facilities as well as support operations which includes: information technology, catering, ground handling, engineering and maintenance (Qantas Annual Report, 2013). Qantas Group also has dual brand strategy. It operates under Jetstar Airline, as a subsidiary. Jetstar is operating under a low-cost business model and it competes with local market airlines, such as Virgin Australia and Tiger. As for the Qantas airlines, it is positioned as a premium full-service carrier, providing hi-end experience for business class and corporate customers. They all have a major influence on the business, its strategy and therefore its performance. This business strategy gives Qantas Group its quite unique and competitive advantage situation of having two well known companies in the superior and low fares segments at the Domestic and International markets (Qantas Annual Report, 2013). The demographics of Australia is taking optimistic atmosphere within the business with the increase of Generation Y and retiring Baby boomers. Schedules become more significant over service quality in current constantly changing business environment around the world. Also, with the rise of ecological concern, consumers are searching for eco-friendly transport methods. However,...

Words: 2349 - Pages: 10

Premium Essay

Mr. a Student

...Strategic Management Name Course Tutor Date Executive Summary These have been unstable times for the Australian airline industry. It has been faced with a marked decline in global tourism after the September 2001 terrorist attacks in the United States. Recently, there has been traffic loss which is attributed to the war in Iraq and severs acute respiratory syndrome (SARS) occurrences in parts of Canada and Asia. In addition, to this mayhem the industry has gone through main structural changes since 1990s. There were four airlines on the essential routes but currently they are two. In 2000, the local trunk routes were controlled by Ansett Australia and Qantas Airways with new competitors Impulse Airlines and Virgin Blue rising in niche market. Currently the industry has irregular two airline structures, with Qantas leading since its occupation of Impulse Airlines in 2001 and the Ansett group’s following collapse in September 2001. On the contrary, Virgin Blue is not a member of an association, its service frequencies are reserved in comparison with those of Qantas, and its local network is not as extensive as that of Qantas is dynamic. In reaction to Virgin blue success, Qantas is taking steps to expand its allocation of the budget travel market, while Virgin is now in quest of expansion past its vacation traveller position by developing its business travel market. The government is showing a liking for administrative way outs such as a certain number of local airline...

Words: 3528 - Pages: 15

Premium Essay

A Case Study of Qantas Airline: the Grounded Kangaroo

...Assessment 3: A case study of Qantas Airline: The grounded kangaroo EXECUTIVE SUMMARY Qantas is the world’s second oldest airline and it fall into a long-run labour dispute which once stopped the running of the company. The CEO of Qantas, Alan Joyce has taken several actions before and during the dispute. This essay will discuss the reason and the cause of such industrial relations problem. Then, to analysis and judge the industrial action of both Qantas and the labour unions with some of the management concept. In the last, possible solution and recommendation will discuss to show the benefit of management skills. Table of contents INTRODUCTION 1-2 PROBLEM IDENTIFICATION2-3 PROBLEM ANALYSIS AND JUSTIFICATION3-5 ALTERNATIVE SOLUTIONS5-6 CONCLUSION AND RECOMMENDATIONS6-7 INTRODUCTION Qantas is the world's second oldest airline. Founded in the Queensland outback in 1920, it is Australia’s largest domestic and international airline and is recognized as one of the heads of world long distance airline companies, having services from Australia to North America and Europe. Qantas today employs approximately 33,600 people and offers services across a network spanning 182 destinations in 44 countries around the world. On 29 October 2011, Qantas chief executive, Alan Joyce took a big gamble; He claimed to ground all the planes and cancelled all flights in order to get rid of a long-run labour dispute and the conflict with Unions. This bold or perhaps impetuous action...

Words: 1957 - Pages: 8

Premium Essay

Accounting Analysis

... * Business Model 3 * Strategy 4 * Market Environment Analysis * Carbon Tax 4 * Tourism 5 * Industry Outlook 5 * SWOT Analysis 6 * Financial Analysis * Profitability 9 * Liquidity 16 * Solvency 17 * Comparison With Virgin Australia * Profitability 19 * Liquidity 20 * Solvency 21 * Conclusion and Recommendation 22 Reference 23 Appendix Calculation spreadsheet – Qantas 27 Calculation spreadsheet – Virgin Australia 28 * Executive Summary This report is prepared for the purpose of evaluating a potential equity investment in Qantas Airways Limited. The analysis is mainly conducted from two different approaches, including qualitative analysis by examining the overall market environment and Qantas’ operation strategies as well as quantitative analysis of the company’s financial performance. The financial analysis is mainly focused on its profitability, liquidity and solvency and we also selected one of its major competitor Virgin Australia for comparison purpose. Overall, we have concluded that Qantas may not have a satisfying financial performance currently, however, it has great potential for growth in the future. And therefore, we expressed a ‘buy’ recommendation for Qantas Airways Limited. Company Profile Qantas Airways Limited (QAN) is the largest...

Words: 4768 - Pages: 20

Premium Essay

Qantas vs. Virgin

...Table of Content Executive summary 2 1. Analysis of macroeconomic and industry conditions affecting Virgin and Qantas in airline company industry. 2 2. Using Capital Asset Pricing Model to analysis two companies. 3 2.1 Risk-free interest rate 3 2.2 Market expected return 3 2.3 Beta 3 2.4 Expected return for two companies’ stocks using CAPM model 3 3. Comparative Equity Valuation – Qantas versus Virgin 4 4. Key financial ratios 5 4.1 Profitability Analysis 5 4.1.1Return on Asset (ROA) 5 4.2 Market price 5 4.2.1 Price-to-Earnings Ratio 5 4.3 Liquidity Analysis 6 4.3.1Current Ratio 6 4.4Debt and Long-term Solvency 6 4.4.1 Interest Coverage 6 4.4.2Leverage 6 4.5 overall analyses 6 5. An evaluation of firms’ strategic choices with the goal of creating shareholder value 7 6. Recommendation 7 Reference 8 Appendix 9 Executive summary Virgin and Qantas airline are two really important airlines in the aviation sector in Australia that listed on the Australian Securities Exchange. During our report, firstly, we analysis the Global and Australian macroeconomic environment, also including industry conditions affecting Virgin and Qantas in airline company industry. Secondly, a capital asset pricing model analysis is given for two companies’ stocks. Next part is the comparison of the Virgin and Qantas airline by the equity valuation. Then, there are some key financial ratios analysis of this two airline from the profitability analysis,market price,liquidity analysis...

Words: 4033 - Pages: 17

Premium Essay

''Ff;, La

...Most Important Macro Environment Factors In Qantas Tourism Essay ukessays.com /essays/tourism/most-important-macro-environment-factors-in-qantas-tourismessay.php Corporate strategy of Qantas has been supporting all its business objectives and also employee level individual objectives so that the company produces better results for the satisfaction of customers. Airline industry is a huge place where different companies are working and if planning and strategic decisions do not meet the needs of the current environment of the business than it would be bad for the company. Marketing and Auditing are the key areas where the strategic decisions of the Qantas have to focus. In Australia the airline industry has been under crisis since 2000 so the Qantas had to tackle the situation by strategic moves and proper planning has to be done for that. Marketing auditing has been done by the company several times to check the effectiveness of the strategic decisions that were being made to support the marketing activities regarding new and old customers (Kain and Webb, 2003). In addition to these, a significant worldwide leaning in rapid look of low-cost transporter was empirical and the challenge for Qantas to maintain both the low cost and high quality standards was difficult but workable and it worked on it. Australian airline industry was not opposed to this, two reasonably priced airlines that is to say wish and Virgin Blue Airlines were launched in 2000 and so they created a sense of...

Words: 2199 - Pages: 9

Premium Essay

Qantas Sustainability Review 2013

...The Transformation Continues QANTAS SUSTAINABILITY REVIEW 2013                             This page has been intentionally left blank   TABLE OF CONTENTS     Page Introduction Governance − − − − Corporate Governance Business Resilience Group Security Group Risk and Audit 2 4 4 9 10 11 13 15 19 22 31 38 45 49 56 57 Stakeholder Engagement Financial Safety and Health Customer People Environment Procurement Community Measures Glossary The Group Strategy, supported by environment, procurement and community strategies, underpins the identification and reporting on material items. To support the Group’s core goal of delivering sustainable returns to shareholders, areas of focus are used to measure, monitor and report on the Group’s performance. Areas of focus and measures are reviewed and updated to ensure that they remain relevant. The Group Strategy drives sustainable outcomes Governance Corporate governance is core to ensuring the creation, protection and enhancement of shareholder value. Stakeholders We are committed to communicating effectively with our stakeholders. Financial Safety and Health To be recognised as the world’s leading airline group in air, ground and people safety and health. Customers Our Customers are the core of everything we do. The Group is continually striving towards providing exceptional customer experiences. Vision We strive to build a strong viable business capable of delivering sustainable returns...

Words: 27168 - Pages: 109

Premium Essay

Qantas Airways Media Strategy Analysis

...QANTAS AIRWAYS MEDIA STRATEGY ANALYSIS WITH EMPHASIS ON 1ST CLASS TARGET MARKET USING TELEVISION AS A MEDIA CHANNEL ABSTRACT This paper explores the current media advertising strategy of Qantas Airways in the recent past. The research seeks to evaluate these strategies against those used by its main competitors with a view to recommending the most suitable media campaign strategies that can be employed to maintain Qantas Airways dominance in market share in the domestic home market and increase its standing as regards the international flights market. The analysis will take into consideration certain aspects such as the main media objectives, the strategy rationale; the media class selection rationale/evaluation, budget approach, and estimated performance results with regard to the reach anticipated in the television segment. The main target of any media campaign has been identified as the first class sector and so the bulk of the concentration of this analysis is geared towards that end. Keywords: Qantas Airways, media, advertising, television QANTAS AIRWAYS MEDIA STRATEGY ANALYSIS WITH EMPHASIS ON 1ST CLASS TARGET MARKET USING TELEVISION AS A MEDIA CHANNEL Queensland and Northern Territory Aerial Services (QANTAS) Airways according the online encyclopedia, Wikipedia, dominates the Australian domestic market with a market share of 65%. This figure is corroborated by the latest January 2012 Qantas report on independent airline review website...

Words: 1247 - Pages: 5