Strengths
• Recognised brand - Australia’s premium airline with the flying kangaroo on a red background is recognised the world over for excellent service and professional cabin crew. The Qantas cabin crew are the global ambassadors for the Qantas brand who communicate Qantas culture and values whenever they interact with passengers.
• Domestic market share - Qantas currently holds a 65% share of the domestic market, with 85% of the corporate travel market (Freed, 2014).
• Innovative - leading the way in the research and development of advanced technologies such as the Next Generation Check-In (NGCI) system and on-board wireless streaming for Ipads are two examples (AusIndustry, 2013) Strong government backing – The government have
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Most notably the pay dispute in 2011 which ended with CEO Alan Joyce grounding the fleet, forcing the Gillard government to intervene.
Opportunities
• Asian market – With an annual growth rate of 8.6% for the period 2008-2013, it is predicted that the industry's volume is likely to increase beyond 794.3 million passengers into 2014 (Datamonitor, 2013). Therefore, there could be large opportunities to increase company revenues and profits.
• Mergers or alliance - The growth of strategic alliances with other airlines such as Emirates could bring about substantial returns including more frequent flights and Frequent Flyer passengers, an extended route network, and cost and efficiency benefits.
• Cross cultural advertising – Qantas is looking to improve on advertising and marketing across cultures in order to gain a larger market sure. Examples of this include, improvement in staff training and the implementation of a ‘Reconciliation Plan’ (Qantas, 2014)
Threats
• Competitors – New and existing. Domestically, Virgin and Tiger are the main competitors, while internationally there are a handful of direct competitors depending on routes. In particular, Singapore Airlines and Emirates are seen to be the greatest threat as
According to source 3, in 2013/14 Qantas reported a PBT loss of $252 million dollars and lost a further $235 million dollar after tax. Alan Joyce explained in source 3 that Australia has been hit with a giant wave of international airline capacity with a 46% increase in competitor capacity since 2009. Three main competition was Virgin Australia as they were trying to expand their fleet during that year, so Qantas lost some customers who went to fly with Virgin instead. This could possibly have to do with the Malaysian airline plane MH370 which went missing. Passengers could have been fearful to fly with any airline after what happened with that
In 2011, Qantas suffered complications from inside and outside the brand. Several job cuts and structural changes, their focus on returns to stock holders and not its responsibilities to the share - holders all added to their external issues. The external issues that rose were the increase of new competitors, changes in consumer decision making, the high demand of customers for lower rates and better quality. Lastly, Australians began their international travels with other international brands. 2016 has proven to be a turnaround year for Qantas relying largely on the lowered prices of oil and the falling Australian currency. Qantas recovered from a $2.8 billion loss in 2014 to a net profit of $688 million within six months. The turnaround has been described as “one of the most remarkable in history”
In the local region, Qantas managed to outweigh its competitor by gaining a toll of 65% compared to its competitor. Evidently this shows Qantas is the number one preferred airlines compared to other competitor airlines like Virgin, Tiger Airways and Emirates airlines. However the situation is not the same in South East Asian region as Qantas only managed to obtain about 15% of market share compared to likes of Air Asia who leads the market share with 60% in this region. Conversely, this is not a concern for the airlines as the airlines managed to generate revenue of 5 billion dollars, with a predicted passenger growth of 4.9% which is equivalent to 2.9 billion passengers by 2034.
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.
comprising Boeing, Airbus and Bombardier aircraft from full-size long-haul aircraft to smaller short haul aircraft. The Group offers services across a network spanning 182 destinations in 44 countries
Qantas is one of the most recognised and longest running Australian companies. It is the world’s second oldest airline, and has a successful history to uphold (Qantas Web Site, 2008).
In a press release regarding Qantas’s future in August 2011, CEO Alan Joyce stated that Q’s 5-year plan began firstly by “returning Qantas to profitability”, and the hope that revenue will “exceed the cost of capital on a sustainable basis”.[1] Joyce’s plan is premised on four pillars: Opening gateways around the world, growth in Asia, being best for global travelers, and creating shareholder value.[2] As an industry in which personnel separates one company from its competitors,[3] and one with an ever-changing internal and external environment, human resource (HR) managers
Indirect competition in the marketplace comes from low cost airlines, and the main competitor in this market is Virgin Australia, which is jointly owned by Air New Zealand, Singapore Airways.
The purchase of Australian Airlines in September 1992 allowed Qantas to more efficiently use their aircraft and improve management of passenger capacity and transfers between domestic and international services. Through their increasing economies of sale, they were able to gain a cushion for the economic
The major competitor is Qantas Airways Limited which is the largest airline in Australia base on the number in fleet. Qantas has 244 aircrafts and Virgin Australia has 128 aircrafts according to Australian civil aircraft register search on ‘Civil Aviation Safety Authority’ on January 2014.
5.1) Strength: Qantas have a very strong and very trustworthy name, which has a proof record by its history of being the second oldest airline in domestic
Competition Not just Airbus, but new competitors from the world's largest emerging markets like China, India and even Japan (Nolan, 2009).
The strategic alliance between Qantas and Emirates was a result of a careful analysis of the airline industry and its involving competitors.
Competitive rivalry: Airline industry can be characterized as imperfect oligopoly. There are several big airlines that dominate in long-distance flights and several smaller airlines compete for short-distance flights. The competition and price sensitive buyers lower the returns airlines receive. This market situation is favorable for a company like JetBlue, which differentiated itself by comfort at low price, but this can be easily duplicated by other companies.
A leader must first of all be able to model the techniques and processes that they want their teachers to employ with the students. For this reason leaders should use an effective board spectrum of educational tools to help teachers reach students of the 21st century. One of the great tools being used today is the increase in the amount of technology used in the classroom. From iPad to chromo books to cellphones teachers are using these forms of technology to enhance and deliver grade level curriculum (Korach, Agans 2011 216-233).