Qantas And Their Highly Turbulent ' Strategic Ride

On October 22nd, 2001, the Industrial dispute between QANTAS and its employees was initiated with the offering of a new Enterprise Bargaining Agreement. This proposed an 18-month wage freeze for employees plus a sliding scale profit share scheme. Ten out of twelve unions under QANTAS accepted the terms of the agreement, barring the unions of manufacturing employees (AWU and AMWU). They were holding out for a 4-6% pay rise. On the 8th May 2002, some ten months later, the dispute was resolved when QANTAS agreed to an across the board 6% pay increase. This essay provides an in-depth analysis into the dispute, including causes, the resolution process, the role of stakeholders, and costs and benefits for all concerned.

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.

With only a few large companies across the globe (Boeing, MD, and Airbus), the commercial aircraft industry essentially exhibits the qualities of an oligopolistic competition with intense rivalry. Here is an analysis of competition in the commercial aircraft business using Porter’s Five Forces.

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. .

Marketing strategies are an extremely important factor in determining the overall success of large global businesses (LGB). Marketing strategies are plans of action intended to promote and sell goods or services. There are a number of marketing strategies available, however, this report focuses specifically on pricing, promotion and global marketing. These determine how a business sells its goods and services, subsequently affecting market share, profitability, and cash flow. This is demonstrated when looking at the global businesses of Qantas Pty Ltd and Apple Pty Ltd. Qantas is an Australian based airline, which has grown from an airmail company to the largest airline in Australia,

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

Management practices at Qantas are more flexible and adapted to suit challenges in society such as the reaction to terrorism, the introduction of viral disease and the ever changing market and customer requirements.

A. Describe the environment, as viewed by Michael Porter’s model of competitive forces, that Valuejet was trying to compete in. consider competition, suppliers, customers, new entrants, substitute products? The five competitive forces that shape strategy are competition, suppliers, customers, new entrants, substitute products. Michael E. Porter demonstrates how the five competitive forces can be used in any industry. The results from all five forces not only look at the narrow aspect of competition rivals but as well as broader aspect of competitive interaction within an industry. These five competitive forces can also be used in the case of Valuejet. Competition within the airline industry is highly

Qantas’ situational analysis (SWOT) is the first step in the marketing process whereby the strengths, weaknesses, opportunities and threats of the airline are identified. The airline’s strengths include: Being part of the Oneworld alliance, having a high safety record, being a globally recognised airline through the use of branding and the flying kangaroo logo, purchasing the latest aircraft thus updating technology and staying level with international competitors and the final strong success of Qantas has come by operating out of some of the world’s major air travel hubs such as Los Angeles International Airport, London’s Heathrow Airport, Singapore’s Changi Airport and Sydney Kingsford Smith International providing an excellent range of customers.

Global strategy plays a vital role in strengthening organisations such as Qantas (Hill & Jones, 2010). Through the use of integration and global standardisation Qantas will be able to enhance its operations and increase its aviation market share. These strategies will enhance Qantas’ consumer base, whilst improving customer service outcomes. The implementation of these strategies will enable superior quality service delivery and improved performance against rivals in the aviation industry.

“We continue to work towards returning Qantas’ international performance to profitability in the short term. Our

In 2007 Qantas had a successful year despite a failed takeover bid, fierce competition, aircraft delivery delays and record fuel prices (Qantas Annual Report, 2007). Qantas must ensure that controllable, internal factors affecting the business are managed to minimise impact from unexpected external factors.

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).

Having conducted research on Porter’s Five Forces Model and the current business climate of the airline industry, I will be analyzing the industry using the Five Forces Model. Porter’s Five Forces model is a highly recognized framework for the analysis of business strategy. Five forces are derived from the model that attempts to determine the competitive intensity, competitive environment and overall attractiveness of an industry. The framework is based on five forces that describes the attributes of an attractive industry and suggests when opportunities will be the greatest and threats the least within an industry. The five forces include

In this paper I will be analyzing the airline industry using Porter’s Five Forces. Porter’s Five Forces is a business management tool that allows firms to possess a clearer perception of the forces that shape the competitive environment of an industry, and to better understand what these forces indicate about profitability with regard to the microenvironment. The forces include Competitors, Threat of Entry, Substitutes, Suppliers, and Customers. When firms are able to widen their conception of competition beyond their direct competitors, and consider the broader economic fundamentals of their industry, they are able to form better strategy to better optimize their profitability. The airline industry is one characterized by low