Qantas Airways: International Strategy Management

Running head: INTERNATIONAL STRATEGY MANAGEMENT
International Strategy Management
Name of the Student
Name of the University
Author’s Note

1INTERNATIONAL STRATEGY MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
Micro Environment Analysis of Qantas Airways............................................................................2
SWOT Analysis...........................................................................................................................2
Porter’s Five Forces Analysis......................................................................................................3
Macro Environment Analysis of Qantas Airways...........................................................................4
PESTEL Analysis........................................................................................................................4
Competitive Advantage...................................................................................................................5
Porter’s Generic Strategies..............................................................................................................6
Ansoff Matrix..................................................................................................................................7
Strategic Recommendations............................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

2INTERNATIONAL STRATEGY MANAGEMENT
Introduction
Strategy Analysis is considered as a major tool to uncover, analyze and evaluate the
major business strategies that are the major contributors for the success of business. The main
aim of this report is to conduct an analysis on the strategies on one of the major Australian
companies, Qantas Airways. Established in the year of 1920, Qantas Airways is regarded has
become the largest domestic airways of Australia and international airlines. The main business of
Qantas group involves in the transportation of the customers with the use of two complementary
airline brands; they are Qantas and Jetstar. It needs to be mentioned that the Qantas Airways has
an employee base of 30,000 people and approximately 93% of them is based on Australia. The
operation of different brands of the airline can be seen in the regional, domestic and international
market (qantas.com 2018). The Australian aviation industry is a major industry that has a number
of airlines operating both domestically and internationally. Over the years, there has been major
growth in this Australian aviation industry due to the economic growth on the country. In
addition, there is increase in the importance aviation industry as Australia is an island
(aph.gov.au 2018).
Micro Environment Analysis of Qantas Airways
The following discussion shows the use of SWOT analysis and Porter’s Five Forces
Analysis for analyzing the micro environment of Qantas Airways.
SWOT Analysis
Strengths Weaknesses
o Strong international as well as domestic o Low profit margin in international

3INTERNATIONAL STRATEGY MANAGEMENT
presence is a major strength.
o Steady and consistent growth helps in
business success.
o Successful cost cutting strategy is
another area of strength.
flights is a major weakness.
o Limited international presence when
compared to the other airlines is
another weakness.
Opportunities Threats
o The opportunity to tie up with the
international airlines can increase the
business opportunity.
o Increase in the business travel is
creating business opportunity.
o Increasing price of fuel is a major threat
for the business of Qantas Airways.
o Increase in competition in the
international airline market is a major
threat.
Porter’s Five Forces Analysis
Bargaining Power of Buyers (HIGH): The buyers or consumers have the large option to choose
from premium class air travelling services, low cost travelling services and others.
Bargaining Power of Suppliers (LOW): In the Australian aviation industry, availability of large
number of suppliers can be seen offering similar kinds of services (Kotler 2015).
Threat of Substitutes (LOW): There is not any faster medium of transportation that the airlines
and it makes this threat lower.
Rivalry among Existing Firms (HIGH): Severe competition can be seen in the Australian
aviation industry as Qantas Airways is directly competing with Virgin Airlines.
Threat of New Entry (LOW): In the presence of huge amount of investment, it is difficult for the
new companies to enter into this market (McDonagh and Prothero 2014).