Qantas Airlines Domestic

Running head: QANTAS AIRLINES DOMESTIC
QANTAS AIRLINES DOMESTIC
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Background
Qantas Airways is officially Australia’s flag carrier. The Airline Company is owned by
the Qantas group of Australia. Internationally it is the largest airline service of Australia. The
company is headquartered in Sydney in New South Wales. Its current revenue is 16.1 Billion
Australian dollars. Qantas domestic airlines has around 65% share of the domestic flight market
of the country. The domestic airlines market of Australia is dominated by mainly, Qantas, Jetstar,
Tigerair and Virgin Australia (Forsyth, 2017). Qantas is currently the largest market player,
however, Virgin Australia has the fastest growth rate in terms of market share. The Australian
Domestic airline market is valued at more than 1 billion Australian dollars. One of the significant
specialties offered by Qantas Airlines is the frequent flyer program. Through this program the
company offers reqards to the customers that fly more often with the airlines. Points are gathered
by customers when they fly with the airlines and these can be redeemed for various upgrades in
Qantas flights or other subsidiary companies of Qantas. Some of the subsidiary companies of
Qantas are Qantaslink, Qantas Loyalty, Jetstar, Qantas Freight, Qantas Holidays and Express
ground handling. Internationally Qantas is part of the Oneworld airline alliance comprising of
other large airline companies from across the world (Our Company | Qantas, 2019).
Porter’s Value Chain Model
The value chain model of Porter divides organizational functional aspects into nine
essential divisions. It is a framework for analyzing an organization with regards to the resources
that an organization utilizes to provide essential end products to the customers. Hence, it
becomes a measure of the effectiveness of an organization considering all the vital aspects that
govern its productive functioning. The value chain model is divided into five primary activities
and four support activities (White, 2018). The primary identified activities are inbound logistics,

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outbound logistics, operations, marketing and sales and service. The support activities are
organizational infrastructure, HR management, development of technology and procurement.
Primary activities
Inbound logistics- This refers to the movement of required materials that could either be parts or
finished materials from the suppliers to the manufacturing plants, retail outlets or warehouses.
The movement in this case is greatly inbound (Porter, 1985).
Outbound logistics- This refers to the flow of the final product from production line to the end
consumer,
Operations- This is the entire process that goes into converting the inputs into significant
productive outputs. This can be in forms of labor, energy or raw materials.
Sales and Marketing- This function is in regards to selling the product. This includes
communicating, delivering, creation, exchange and offers that provides value to clients,
customers or other stakeholders.
Service- This generally encompasses the activities that are connected with post sales
engagement. In service oriented industries this is one of the most important factors.
Support activities
Infrastructure- This consists of the legal factors, accounting and finance, public relations, quality,
control and general management.
Technology- This refers to the technological aspects related to the organization. Thus, hardware,
software, equipment and machinery, technical skill all fall under this category