Business Consulting: Industry Analysis and Project Details
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This report provides an industry analysis of the airline industry and discusses a business consulting project for Qantas. It includes project details, client needs, project scope, industry analysis, and conclusion.
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Running head: BUSINESS CONSULTING BUSINESS CONSULTING Name of the Student Name of the University Author Note
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1BUSINESS CONSULTING Table of Contents Introduction................................................................................................................................2 Discussion..................................................................................................................................2 Project Details-.......................................................................................................................2 Client needs:.......................................................................................................................2 Project scope:.....................................................................................................................2 Clarifying questions:..........................................................................................................4 Industry analysis.....................................................................................................................4 Industry definition:.............................................................................................................4 Porter’s five-force analysis:...............................................................................................4 Industry overview-.................................................................................................................6 Conclusion:................................................................................................................................6
2BUSINESS CONSULTING Introduction The services provided by an individual or group in regards with management, security, law, consultancy, public relations and human resource, finance and accountancy to a range of clients is known as Business Consulting. The individual/group offering the services is termed as Consultants. The report will deal with a business consultancy project in the response of the client Qantas. The purpose of the paper is to undergo industry analysis in which Qantas is operating and to present an overview of the industry by mentioningthe presence of competitors. The paper will also highlight the complete details of the project. The report will be concluded by stating the overall analysis of the industry in which the company is operating. Discussion Project Details- Client needs: Although Qantas is one of the major players in the domestic airline industry but the company is in an expanding phase by searching opportunities for enhancing market size (the number of potential buyers in a market segment) and market share (Dobni, Klassen & Sands, 2016). The company will be developing an internal strategic plan but needs the help of the consultant in the two functional areas, the identification of the domestic route on which the company can focus as well as the ways of implementing partnerships for increasing the market share and market size (O'Connell & Williams, 2016). Project scope: Justification The project will be addressing the business needs of the domestic Airline company Qantas. The needs which will be focused in business consulting is the identification of a new domestic route for the company and to identify and implement a strategic partnership, which
3BUSINESS CONSULTING will not be focused on another airline, for enhancing the size and market share of the business. Product scope description The business consulting project will result in following characteristics: a)A clear understanding of the key issues in regards with the client company. b)A clear assessment of the needs of the company, which requires external help. c)The project will create a synchronized position of the consultancy services with the client’s requirements. d)A base for the consultancy strategy in identifying and implementing the strategic partnership procedure. Acceptance criteria The project will be constructed on the basis of the client’s clarifications in regards with the business assistance requirements. The services resulted from the project will be focusing on the identified requirement of the client with the considertions of the key issues. Deliverables The objectives, which will be achieved by the project, are: a)An understanding of the client’s requirements for the external assistance. b)An understanding of the industry in which Qantas is operating. c)Identification of opportunities for Qantas for their goal of achieving higher market size and market share. d)Development of the recommendations regarding the identification of a new domestic route and strategic implementation of partnership for enhancing market size. Project Exclusions
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4BUSINESS CONSULTING The project will not be focusing on the developing a comprehensive strategic plan for Qantas. It will only deal in the areas, which requires external assistance. Constraints The restriction here can be the understanding of the internal key issues of the potential partner company. Another limitation can be period required for clarifying the needs. Clarifying questions: The questions and answers of this projects indicates the process of understanding the current value proposition and future aim of the client company. The questions will present an overview of the customer base segment and expansion plan of Qantas. Industry analysis- Industry definition: The airline industry can be defined as the system of transportation, which deals with transporting people and goods by utilizing the airways. The Airline industry is one of the major businesses of the world. There are various types of Airlines, international, domestic and intercontinental (Baker, Merkert & Kamruzzaman, 2015). The industry portrays various features such as it presents a service intensive product, the profitability dependence on seasonality and occasion. Porter’s five-force analysis: 1.Barriers of entry: In general, it is believed that airline industry is very tough to allow new entrants in the market because of various governmental norms and investment cost. But in Australia, the
5BUSINESS CONSULTING government norms in regards with the airline industry is very casual which results in fewer barriers for the newer entrants. The opportunity of acquiring access to bank loans as well as credit facilities in Australia will help a brand to start operations in this industry. In this industry, points of frequent fliers and brand recognition also plays a major role. Qantas operates in the premium segment by offering premium service (Baumann et al., 2017). Therefore, the threat of new entrant is moderately high. 2.Power of Suppliers: The airline industry mainly consists of two major suppliers Airbus and Boeing, which results in a high bargaining power of the suppliers. 3.Power of Buyers: The bargaining power of the buyers is low as the switching costs associated with changing options in this industry is quite high and the buyers cannot find significant difference in the two different airplanes which restricts their bargaining power (Zhang et al., 2018). 4.Availability of Substitutes: In this industry, the domestic airlines may experience slight threat from the available local transport of the country or region in comparison with the international airline service. Even though in Australia, the locomotive and automobile industry reflects a major influence over the transport decision but if an individual is travelling specifically from Sydney to the destination Perth, the only alternative will be domestic airline (White, 2018). The rate of availability of substitutes will be dependent on the factors like convenience, cost and preferences . The major players in this industry are Qantas, Jetstar, Tiger Airways and Virgin (BlueWhyte & Lohmann, 2015). 5.Competitive Rivalry:
6BUSINESS CONSULTING The profitability of this industry can be low because of the presence of high level of competition but the competition in the premium segment is lower than the low cost services (Bamber, 2018). Industry overview- The mainline domestic scheduled air passenger service network is surrounded by the domestic trunk airline industry in Australia. The industry is composed mainly of the inter- capital routes. The soul provider of ‘full-service’ in the airline services is Qantas Domestic (Forsyth, 2017). The market share captured by Qantas Domestic is around 70 percent in Australiaaph.gov.au(2019). The competition in the full service segment of this industry is low but the competition can increase if considered in the overall industry. Conclusion: Therefore, the paper can be concluded by stating that Qantas is a safe position in terms of the barriers to entry and competition but when it comes to the overall industry the brand has the opportunity to expand the market size by improving the business operations and strategic partnership with complementary businesses.
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7BUSINESS CONSULTING References: aph.gov.au(2019).Australian Airline Industry – Parliament of Australia. [Online] Retrieved fromhttps://www.aph.gov.au/About_Parliament/Parliamentary_Departments/ Parliamentary_Library/pubs/rp/rp0203/03RP10#aair Baker, D., Merkert, R., & Kamruzzaman, M. (2015). Regional aviation and economic growth: cointegration and causalityanalysis in Australia.Journal of Transport Geography,43, 140-150. Bamber,G. J. (2018). Low-cost airlines’productand labormarketstrategicchoices: Australian perspectives.Members-only Library. Baumann, C., Bretherton, T., Sarina, T., & Taksa, L. (2017).Facing some ‘home’truths: Brand backlash and the case of qantas. SAGE Publications: SAGE Business Cases Originals. Dobni, C. B., Klassen, M., & Sands, D. (2016). Getting to clarity: new ways to think about strategy.Journal of Business Strategy,37(5), 12-21. Forsyth, P. (2017). The regulation and deregulation of Australia's domestic airline industry. InAirline Deregulation(pp. 48-84). Routledge.
8BUSINESS CONSULTING O'Connell, J. F., & Williams, G. (2016). Airline Strategy: Keeping the Legacy Carrier Competitive. How Can Mature Airlines Stay Ahead in the Low-fare Airline Era?. In Air Transport in the 21st Century(pp. 179-194). Routledge. White, L. (2018). Qantas still calls Australia home: The spirit of Australia and the flying kangaroo.Tourist Studies,18(3), 261-274. Whyte, R., & Lohmann, G. (2015). The carrier-within-a-carrier strategy: An analysis of Jetstar.Journal of Air Transport Management,42, 141-148. Zhang, Y., Sampaio, B., Fu, X., & Huang, Z. (2018). Pricing dynamics between airline groupswithdual-brandservices:ThecaseoftheAustraliandomesticmarket. Transportation Research Part A: Policy and Practice,112, 46-59.