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Transcript of QANTAS Airlines
ALEX - ABY - HUSEIN CHALLENGES & STRATEGIES CONTENT Introduction & Qantas history
Changes in Qantas
Developmental features and the impacts on Qantas
Future challenges & Recommendation
Reference list HISTORY 1920 - 16 November, Estblshd
1954 - Carried torch for Melb Olympics
1988 - Became an incorporated Public Company
1992 - Bought Australian Airlines
1992 - Privatised with 25% sold to British Airways
2004 - Launch of Jetstar
20 Domestics + 21 International destinations
Will operate total of 20 Airbus A380-800 series
One of the leading airlines in the world
A very profitable company PREVIOUS CHALLENGES 1990 - Deregulation of Airline Industry
2000 - Emergence of Virgin Airways
2008 - Global Financial Crisis HOW TO OVERCOME THESE PROBLEMS ?? STRATEGIES IMPLEMENTED Changed management and restructuring program
Partnership and alliances with other airlines Sustainable cost reduction OPPORTUNITIES Expansion to other international destinations
Applying new technologies to make better travel experience
Research and development to advance procedure in the aviation industry
THREATS The economic condition is reducing the number of travelers for leisure reason
Terrorist threat can reduce the number of passengers
Cost of airline security has been increased every year
Increase in oil price STRENGTHS Strong Management team (Emirsyah Satar)
Effective change management program
A profitable company
New aircrafts can save up to 3% fuels WEAKNESSES Not really popular brand in France
9/11 trauma and GFC in 2008
Identify the developmental features and evaluate their impact on Qantas’s success. EXTERNAL ENVIRONMENT Political/ Legal Competitor Environment Global Technological Australia’s domestic airline industry was deregulated in October 1990.
Qantas was allowed to fly domestically.
British Airways completed 25% of the Qantas shares in March 1993. PRIVATISATION INDUSTRY ENVIRONMENT CHANGE IN THE INDUSTRY QANTAS JETSTAR MARKET SEGMENTATION STRATEGY - INTERNATIONAL ROUTES
- PREMIUM, FULL SERVICE - DOMESTIC ROUTES
- LOW BUDGET, NO FRILLS COMPETING WITH VIRGIN BLUE Establishment of a low-cost carrier, Jetstar, to compete with Virgin Blue.
Growth in the leisure markets, through expanding Qantas Travel agencies and inclusive holiday packaging with airfares.
Maintenance of its quality as a full-service carrier. STRATEGIC PLATFORM FUTURE CHALLENGES INTENSE COMPETITION / PRICE WARS DOMESTIC - Undercut, Low costs
FOREIGN - New entrants, eg Scoot STRATEGIES Differentiation
Specialisation with Subsidiary International Alliances
Investments in Technology FUTURE CHALLENGES RISE IN FUEL PRICES / EMISSIONS RESTRICTIONS Carbon Tax, Europe Trading Plan STRATEGIES Economical Planes / Techniques
Cost cutting measures, resources CONCLUSION Change in Management Programs
Partnerships & Alliances
Sustainable Cost Reduction
Technology Investment Alam, Q. (2007). Qantas Airlines (Working Paper). Melbourne: Monash University, Department of Management.
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Gayle, P. (2007). Airline code-share alliances and their competitive effects. Journal of Law and
Economics 50(7), pp. 781-819
Hanson, D., Hitt., Ireland, R., D., & Hoskisson, R., E. (2011). Strategic management: Competitiveness and Globalisation (4th ed). Australia: Cengage Learning.
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IBIS World (2012), Industry Report I4092: Domestic Airlines in Australia, viewed on 21st April 2013, retrieved from IBIS World Database
IBIS World (2013), Industry Report I4091: International Airlines in Australia, viewed on 21st April 2013, retrieved from IBIS World Database
Knowledge @ Australian School of Business (2012), Extreme Turbulence Ahead: How the Airlie Industry is Bracing for Change, retrieved from: http://knowledge.asb.unsw.edu.au/article.cfm?articleid=1540
Qantas Airways (2013, April 25). Fact File. Retrieved from: http://www.qantas.com.au/infodetail/about/FactFiles.pdf
Wensveen, J. (2010), The Airline Industry: Trends, Challenges, Strategies, PowerPoint presentation, The University of Sydney, Sydney REFERENCES QUIZ What is an external environment factor affecting the Airline Industry
List an example of how Qantas overcame the entry of new competitors.
Give an example of a future challenge that Qantas may face
What target market did Virgin Airline appeal to?
Name a new competitor in the low-cost Australian Airline Industry. Existing competitors struggle to make profits.
The market is mature
Buyer demand is slowing due to external factors.
The industry is highly volatile, risky and uncertain Cost Cutting / Value Chain