Business Concepts Of Qantas Airways

Qantas’ financial performance has been very successful in recent years with the business recovering strongly from GFC and a large decrease in revenue to ear 377 million in 2010. The effective financial performance has been the result of effective profitability, liquidity, efficiency, return on capital, good solvency and growth including the establishment of a new airline (jet star).

Qantas is Australia’s largest domestic and international airline. Although Qantas is primarily a passenger airline, air freight is also an integral part of its core business. Other Qantas operations include catering, tourism and E-commerce devoted to transport and travel. In order to have an effective business and operations process, a company, like Qantas must be aware of the influences that can affect it. By being aware of the influences it enables the business to make decision and choices that can get the most out of each influence, by doing this it can assist the business in its endeavours for success.

This report largely focuses on constructing a situational analysis of Qantas Airlines. An organisations situational analysis refers to an analysis that consists of ascertaining the key factors that will be used as a basis for development of marketing strategy. (Elliot 2014). Situational analysis consists of the environment analysis (both internal and external environment), competitor’s analysis and finally the swot analysis.

Founded in Queensland Australia in 1920, Qantas has now become Australia 's biggest name in relation to domestic and international airline. Originally registered as the Queensland and Northern Territory Aerial Services Limited (QANTAS). Qantas is widely regarded as one of the world 's top airlines and one of the strongest brands in Australia. Over the years it has managed to build a reputation for excellence in

These main business objectives help the airline to focus on deliver quality services of the customers. Qantas main business is passengers transports and it is the world’s second oldest airlines. Qantas group operates approx 5600 flights in a weak in 59 cities of regional areas. Internationally, the group operates around 970 flights (Qantas-630 and Jetstar-340) in 44 counties 182 destinations. Moreover, through operations the group focused on five key elements that are right aircraft or right

The main focus of this report is to identify the legal classification, the characteristics, the life cycle stage of Qantas and one internal and external stakeholder that is affected by the activates of Qantas. The legal classification describes that Qantas is a public company and has changed its legal classification in the growth and maturity stages of the business life cycle. The characteristics of Qantas talks about the company's industrial classification and sector classification. The business life cycle is explained and gives reason why Qantas is in the renewal stage of post maturity. There is also description of one internal and external

The analysis of the Porters five forces are very important to business entities. Based on the analysis a business can evaluate their current position and positions that they plan to progress towards as it relates to the industry they are operating in.

This allows the level of buyer’s power to be medium. However, the bargaining power of supplier is also medium because there are few suppliers in the aerospace industry, enabling the companies to find a product price that achieves profit maximization. On the basis

The threat from substitution is moderate for Jetstar because though advances in technology like internet and video conferencing lessens the need for business travelling, there are still some matters that are difficult to be discussed or overseen over the internet (Rahman, Joha, 2010). Moreover, Jetstar has international carriers, thus the threat from substitution is relatively lower as compared to domestic or regional carriers. This is because the likelihood of train and cars being able to reach the destinations of non-neighbouring countries is low and sometimes, travelling by sea is not always convenient.

Through s Porters Five Forces analysis (Figure 1 – Appendices) the greatest threat for Qantas is the rivalry. Qantas is taking advantage of this opportunity as through the alliance it creates greater certainty for the shareholders while also being able to increase its numbers in international routes to 33 one-stop destinations in Europe in addition to 31 one-stop destinations in the Middle East and North Africa (Ryan, 2012). Additionally, as competition was putting pressure on the market while Qantas was restricted by financial reasons, this alliance came as a great opportunity. Furthermore, from 31st of March Qantas frequent flier point users were able to book Emirates flights while the customers’ high status with Qantas was recognized at Emirates as well. Lastly, on European, Asian and African destinations Qantas mirrored Emirates baggage policies (from 20kg to 30kg) (Panaus Travel, 2013).

Bargaining power of customers: In airline industry the bargaining power of the customers is low to medium, because the buyers are not concentrated; there is no threat of backward integration.

Porter’s Five Competitive Forces Analysis is a framework developed by Michael E. Porter of Harvard Business School for study of industry analysis by analyzing five competitive forces which define industry and its business strategy. These five competitive forces determine the competitive advantages, disadvantages and attractiveness or profitability of industry.

The five forces of Porter’s model are an exceptional tool that can help Virgin to understand the level of competition in the airline industry. Some of Virgin competitors are Qatar, British Airways etc. The managers at Virgin Atlantic can create strategies that are more successful to tackle competition and to improve Virgin competitive strengths by using this tool.

In this case study we going to evaluate the attributes to assess the effectiveness of the strategies implemented by airasia in supporting its competitiveness in the airline industry using porter’s five forces analysis. In 1980 Michael E. Porter develops a model of the Porter‟s Five Forces this model is to identifies and analyzes 5 competitive forces that shape every indusrty and help determines an industry’s weakness and strengths.

Porter’s five forces analysis is a tool is useful for us to analyse the threat of competition in an industry. Porter believed that the industries were influenced by five forces; competitive rivalry, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, and the threat of substitutes. Analysing these areas can allow you to see attractiveness of the market and find a competitive advantage.