Qantas And Their Highly Turbulent ' Strategic Ride
1976 Words8 Pages
Qantas and Their ‘Highly Turbulent’ Strategic Ride
It is often said that a key element of success is how companies strategically manage growth and their ability to manage obstacles they are faced with. The Qantas Group is an example of a company which has been taken on a ‘turbulent’ ride, due to influences from the general, internal and external environments, since it first originated in the nineteen-twenty’s. Qantas’ growth has been effected by its general environment due to the global financial crisis, employee strikes, high fuel costs and emergence into global markets. In relation to these areas, the following essay will analyse the Qantas group’s effectiveness and competitiveness as a company and discuss how their strategies have…show more content… Qantas’ mission is based on their goal to be, “the world’s best premium airline, offering a genuinely global network, providing outstating travel experience, working with strong partners- and putting safety first at all times.”(Qantas, 2013). Qantas is faced with competition within the domestic airline industry from Virgin Australia and Tiger airways and international competition comes from several major airline operators including Virgin Australia, Singapore Airlines and Cathay Pacific (Fisher and Waschik, 2002 p. 317). Hill, Jones and Schilling (2013) describe competitor analysis as focusing upon the overall industry in which a firm competes, to attempt to understand objectives, strategies, assumptions and capabilities. This can be considered through an industry environment analysis of the competitive forces model.
Michael Porter’s well known framework, the Five Forces model, helps firms to analyse competitive forces in order to identify opportunities and threats (Rappaport, Mauboussin, 2001, p 54). The first element to this model is the threat of new entrants. Identifying this area is effective for the responsiveness of threats to the market share of Qantas. Currently, the airline industry is inundated with suppliers of the service. The cost of entry is the key contributor for this with a high cost of obtaining aircrafts, safety and security measures, customer service and general operational activities. Secondly,