MGM3107 Strategic Management: Qantas Airline Strategic Analysis

This report provides a strategic management analysis of Qantas Airline, a leading airline in both international and domestic sectors. It outlines the company's vision, mission, and goals, emphasizing safety, efficient aircraft routing, and customer service excellence. A unique differentiation feature is Qantas's fuel hedging strategy, providing stability in volatile markets. The report includes a competitive analysis positioning map, comparing Qantas with other Australian domestic airlines based on in-flight offerings and service quality, highlighting Qantas's top rating in customer satisfaction. The analysis concludes that Qantas maintains its successful brand by offering premium options at reasonable prices, fostering customer loyalty and solidifying its position in the aviation industry. Desklib is a great platform to find similar solved assignments.

Running Head: QANTAS AIRLINE 0
STRATEGIC MANAGEMENT
Qantas Airline

QANTAS 1
Table of Contents
Overview....................................................................................................................................2
Vision, Mission and Goals.........................................................................................................2
Unique Differentiation Feature..................................................................................................2
Competitive Analysis (Positioning Map)...................................................................................3
Conclusion..................................................................................................................................5
References..................................................................................................................................6

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Overview
Qantas Airline is one of the oldest and prime airline outback in 1920. In both international
and domestic sector, this airline is leading with continuous expansion and growth. The airline
focuses on premium business and luxury class passengers. Though Qantas is largely a
passenger airline, however, airfreight also constitutes an integral aspect of its core
commercial. Moreover, their other operations comprises of tourism, catering and E-
commerce ardent to transport and air travel.
In terms of target market, this airline is catering to several sections of the society people from
corporate sector, middle class and upper middle class. Qantas also have varied pricing policy
that depends on the needs and wants of a passenger.
Vision, Mission and Goals
The enduring vision of Qantas airline is to control the world’s best premium airline. In
addition, their mission statement states that – Is ‘We are Country top premium airline and we
are devoted to being the best. Our objective is to come across the customer expectation every
time they fly and so we remain to invest in the business and will always endeavour to give
customer a superior level of service’.
Moreover, their goals are also divided into several key elements such as –
 To make safety as first priority.
 Right aircraft in the right route.
 Excellence in customer service.
Unique Differentiation Feature
Qantas has a huge global operations management and supply chain. One of the distinct
features of this airline is fuel hedging as it gives Qantas a sense of safety and strength in the
unsteady market environment and helps with enriched managing, planning and decision-
making by proposing some certainty. Therefore, their desired goal to fulfil customer needs
with improved operations in relation to the international business partner.

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In terms of consumer marketing, Qantas use many sorts of lucrative deals with the help of
advertisement at various places to entice the customer base. This consumer marketing
strategy of Qantas in Australia made the organization monopoly in the Australian area. In
addition, Qantas Airline also has B2B customer base. The company also use several types of
tactics to attract bulk suppliers. One of the important and major tactics used by them is lost
cost-pricing strategies for carriages.
In terms of their unique feature connected with the products, Qantas provides various new
experiences such as inflight dining, inflight entertainment, inflight communication and seat
maps and more. This differentiates them from the other airline and makes them stand top in
the aviation industry.
Competitive Analysis (Positioning Map)
Good In-Flight
Offerings
Poor service
quality
Good service
quality
Poor In-Flight
Offerings
Qantas
Jetstar
Virgin Australia
Regional
Express Airline
(REX)

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With the help of above positioning map, a comparison is made to the Australian domestic
airline based on In-flight offerings and Service Quality. However, in this competitive market,
Qantas Airline rated on the top spot with gaining more number of satisfied customers. A
survey is raised by canstarblue where almost 1,500 adults took part in the 2018 review. They
all reported and share various experiences based on the questionnaire they have given.
As per the survey, Qantas gets highest rating and achieve five stars in terms of various areas
such as availability and scheduling, flight punctuality, in-flight offerings overall customer
satisfaction. However, it was rated four stars on the basis of value for money. Virgin
Australia was the next second most airline satisfying customers at par. However, in terms of
Jetstar airline, the customers were not satisfied with in-flight offerings and thus in this
segment, the airline gets only two stars. Moreover, Regional Express airline (also known as
Rex) is the only airline, which dissatisfied the customers in many areas.
This shows the strength of Qantas airline in the changing business and dynamic environment.
Qantas takes off with customer satisfaction gong and gives their customers plenty of options
considering when they need to get from A to B. While Qantas may not always be the
cheapest option, it is one of the most prominent airlines available with having largest fleets.
They also make flying easier with the bonuses of inflight entertainment and offerings.

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Conclusion
In last, Qantas retain its brand to be one of the most successful airline in the world’s by
giving premium options to the customers at reasonable prices. This results in giving them
loyal clients and customers who are connected with the organization and nature of products
offered by the airline.

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References
Canstarblue. (2018) Domestic Airlines [ONLINE] Available from:
https://www.canstarblue.com.au/domestic-airlines/ [Accessed 05/12/2018].
Cocks, G. (2009) High performers down under: lessons from Australia's winning
companies. Journal of Business Strategy, 30(4), pp.17-22.
Gillen, D. and Gados, A. (2008) Airlines within airlines: Assessing the vulnerabilities of
mixing business models. Research in Transportation Economics, 24(1), pp.25-35.
Oxenbridge, S., Wallace, J., White, L., Tiernan, S. and Lansbury, R. (2010) A comparative
analysis of restructuring employment relationships in Qantas and Aer Lingus: different
routes, similar destinations. The International Journal of Human Resource
Management, 21(2), pp.180-196.
Treadgold, T. (2013) The Qantas Crisis Is All About A Business Kicking Own Goals
[ONLINE] Available from: https://www.forbes.com/sites/timtreadgold/2013/12/08/the-
qantas-crisis-is-all-about-a-business-kicking-own-goals/#3202d1f0515e [Accessed
05/12/2018].
Vinod, B. and Moore, K. (2009) Promoting branded fare families and ancillary services:
Merchandising and its impacts on the travel value chain. Journal of Revenue and Pricing
Management, 8(2-3), pp.174-186.