Qantas Airways Business Strategy Analysis

Qantas Airways
Business Strategy (Management)

Contents
Introduction...........................................................................................................................................2
Industry analysis....................................................................................................................................3
Porter’s five forces............................................................................................................................3
Critical success factors......................................................................................................................5
SWOT analysis..................................................................................................................................5
Past Business strategies of Qantas.........................................................................................................7
 Competitive strategy..................................................................................................................8
 Low cost strategy.......................................................................................................................8
Current business strategies of Qantas....................................................................................................9
 Diversification strategy..............................................................................................................9
 Commitment strategy for customers-.....................................................................................10
Recommended business strategy and approaches for future in order to become a strong competitor. .10
Conclusion...........................................................................................................................................11
References...........................................................................................................................................12

Introduction
Qantas is biggest airline of Australia that connects over 1000 destinations all around the
globe. In 1920, its first aircraft launched. After its first launch, it is continuously groaning as
a leading branch in the aviation industry. It provides employment opportunities to more than
30,000 people from different countries in which it operates. The vision of Qantas airlines is to
provide low fare airlines and better Jet star facilities to the middle class people. It has
established itself as the safer and best airline in Australia by applying its excellent strategies
in the organization. It operates in two separate brand names such as Jetstar and Qantas. These
two brand names operate in Australia as well other international countries (Qantas Airways,
2011).The strategic analysis of the Qantas airlines is done in the report. By taking into
account the porter’s five forces, Qantas strategies are explained which is taken by Qantas to
reduce the bargaining power.

Industry analysis
Porter’s five forces
Bargaining power of suppliers-it is a force that helps in analysing the business strategy.
Qantas has strong position in its supplier due to its growth and reputation in the aircraft
industries. Qantas works with various suppliers in order to preserve the profit margin
(Seufert, 2014). Suppliers has bargaining power in terms of various assess such as fuel and
construction.
Bargaining power of buyers- In the airlines industry, buyers are either business professionals
or individuals belong to middle class. Buying power is high in Qantas airways as customers
can switch to other airways that are providing best services in low cost (Dobbs, 2014). In the
current scenario, passengers have different options such as they can buy the tickets from
websites or from the travelling agent. In this way, it has created the low cost strategy to
increase its customer base.
Competitive rivalry- Qantas is said to be the market leader in Australia but there are some
competitors who put threat to Qantas. From the annual report of the company 2009, it is
founded that Qantas is operating Jet Star in order to compete with the Virgin Blue, a low fare
airline. By taking its competitors in the market, it focuses on differentiation strategy to deal
with its competitors (Qantas Airways, 2016).
Threat of substitutes- The major substitutes of airlines are car, trains, and buses. However, the
airline industry provides the various benefits such as it takes less time of customers to reach
on the location as well comfortable journey is taken by the passengers. Low cost leadership
strategy as well as differentiation strategy of Qantas helps it to retain its customer. Therefore,
threat of substitute is less in Qantas.
Threat of new entrant- There are various barriers in the airline industry, as it requires a huge
capital to initiate the airline business. Besides this, there is threat of competition in the
market. Therefore, Qantas can adopt alliance strategy so that it becomes difficult for new
entrants to come in the aviation industry.
PESTEL analysis