Evaluate marketing strategies the business could use to achieve its business objectives
When devising a marketing strategy, it is important that a business has a clear understanding of the target market. Once this has been established, the business will develop appropriate promotional and pricing strategies that cater to the needs of this target group. The business will also need to consider appropriate locations to sell the product. Qantas is Australia 's leading and largest airline and one of the oldest airlines in the world. Qantas was founded in the Queensland outback in 1920 and has grown to be Australia 's largest domestic and international airline. Qantas is widely regarded as the world 's leading long distance airline and one of
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This strategy has led to Qantas achieving their business objectives of increasing their profit margin and growth within new markets.
In order to accomplish the business objectives of Qantas, the business applies the People Strategy which is one of the Three Service Strategies (people, process and physical evidence). The people element refers to the quality of interaction between the customer and those within the business who will deliver the service, as consumers make judgments on the business based on how the employees treat them. The quality of Qantas’ services depends on the ability of its human resources due to the fact that most customers have direct contact with their employees through processes such as ticketing, check-in and baggage handling. The impression the employees gives has a major impact upon how Qantas is perceived. Qantas spends more than $275 million per year on staff development to ensure that there is a positive interaction between consumers and employees. Whilst interacting with the customer, it is essential that Qantas’ staff are dressed according to their uniform policy such as Australian wool suits for flight attendants. With their positive appearance, this gives the customer the idea that they are professionally equipped to perform tasks correctly. With Qantas being very customer focused, the use of the People Strategy has managed to acquire Qantas a reputation of high quality services. It is important for a business to
Maintain Qantas frequent flyer as a driver of loyalty across group and as a leading loyalty program.
The boards of directors are implicating new strategies to help Qantas renew in the post maturity stage. These strategies are:
1) Qantas Airways Limited is the national airline of Australia, it is also the largest airline in Australia. The Qantas Group’s principal business is providing domestic and international air transport services for passengers. Additionally, Qantas owns several subsidiary companies such as Jetstar and QantasLink that also operates flights to domestic and international locations, and Q Catering, a premium full service flight caterer.
Rivalry among industry competitors has caused attention to be focused on tariff levels. Airfare prices were at an all time low in 2009. This suggested a strong competitive rivalry based on price differentiation. This price differentiation will cause a dramatic loss in revenue if these prices continue to drop and this would lead to a reduced competitiveness. In an effort to safeguard revenue and reduce expenditure, Qantas has developed a strategy to deal with a change in the external competitive environment. .
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).
The following paper provides an analysis and evaluation of the current market position of Qantas and the airline industry. By assessing the company both internally and externally by applying PESTLE and Porter’s Five Force frameworks, this report will assess Qantas’ opportunities and strengths within the aviation industry. In addition to this, the report will focus on the specific resources and capabilities that enable Qantas to obtain a competitive advantage over its competitors through the use of the VRIO framework. A final analysis
The outcomes of the changes saw a more effective/ more efficient management structure, allowing Qantas to deal with changes in the internal and external business environment more effectively.
Another strategy that Qantas has used to respond to globalisation is through product differentiation. Qantas maintained it’s competitive advantage by providing a service which was unique and different to those of it’s competitor. Qantas was known for having ‘the best safety record of any airline in the world’. The airline was also ‘true-blue’ Australian and was Australian owned. This made the business different and attracted customers towards Qantas giving it a competitive edge over it’s foreign competition. Following the deregulation of Qantas, the business has started to lose sight of what it really was. The business has recently decided to implement another
We celebrate the special way we treat and relate to our customers. We think retailing is all about customer experience, and that is what really differentiates us.
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
using their own core competencies to turn the airline around. By applying their own strategies,
Provide full value of money for customers through reduce cost and enhance level of quality (Qantas Airways Limited, 2014).
In order for a business or corporation to grow and expand at a calculated pace, they must be able to strategize the proper business plan to get there. A strategy is a set of analytic techniques for understanding and influencing the firm 's position in the marketplace (Raimundo, 2001). Having a business
The critical factors in the successful transformation of British Airways were changing the culture of the organization for the employees and the consumers. British Airways embarked on an aggressive media campaign that helped change the “face” of the airline. Their new tag line was “The worlds favourite airline”. Customer service became the number one priority for all employees. Lead by Colin Marshall, “an enabling culture (was put) in place to allow customer service to come out, where rather than people waiting to be told what to do to do things better, it’s an environment where people feel they can actually come out with ideas, that they will be listened to, and feel they are much more a part of the success of the company” Jick (2011)(p.30). A “Putting People First” (PFF) program was instituted for all front line employees. This helped to unify the employees with the new vision of customer service first for the company. During these two day mandatory meetings, all front line staff interacted with all levels of managers and leaders on an even playing
Combined, Qantas along Emirates offer 98 weekly routes between Dubai and Australia. This deal improved Qantas’ profit before tax with an increase of 80/90 million A$ in 2012/2013 while projecting an increase of around 400 million A$ in the financial year 2013/2014 according to an analyst at Macquarie (Joyce, 2013). This alliance surpassed the existing partnership - Etihad Airways/Virgin Australia which covers only 30 European routes (Varley, 2013). Ultimately, the alliance helped divert capital resources from Europe to