Qantas Domestic Strategies 2019-2022: BIZ304 Project Report

This project report, prepared by a student group, analyzes the strategies of Qantas Domestic from 2019 to 2022. The report begins by outlining the airline's goals, including expanding market share and enhancing customer experience. It addresses the need to identify new domestic routes and leverage strategic partnerships. The project delves into the challenges Qantas faces, such as competition from low-cost carriers and external factors like fuel costs and industrial relations. A SWOT analysis is employed to assess both internal strengths and weaknesses, as well as external opportunities and threats. The report emphasizes the importance of understanding the external environment to capitalize on opportunities and mitigate risks. It also highlights the significance of Qantas's brand image, financial management, and customer service. The conclusion reiterates Qantas's focus on strategic management, safety, and growth, particularly in the domestic market, and the effectiveness of its corporate strategies. The report references various research papers and industry analyses to support its findings.

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Factors influencing Strategies for Qantas Domestic 2019-2022
Students name
Professors name
Institution of affiliation

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Strategies for Qantas Domestic 2019-2022
Description
Qantas is one of the largest Australian airline considering in terms of the fleet size.
Ranked third position in the world from the time it started its operations (Shaffner, Mills &
Helms Mills, 2017). The project was aiming at addressing the available chances and
opportunities that may expand Qantas, the challenges which were likely to be faced in the
process and the aim of the Qantas airline.
Qantas airline has been a very trusted, the most reliable and efficient service that
transports goods and mostly people in various routes, for example in Melbourne Sydney which is
in Australia has benefited much from the airline. The study emphasizes on the efforts to coming
up with efficient strategies that can be used to improve on expanding and increasing passenger
traffic within the airline routes.
The Qantas client’s needs
Qantas airline aims at being an airline of choice to the customers considering the
specific needs that they may require, this can be achieved by making sure the travel experience
provided is comfortable which also have a hassle experience, providing and ensuring that safety
of the passengers and the Qantas staff is guaranteed. In order for this to be achieved, Qantas will
be required to offer all assistance available for the passengers which will involve the act of
reduced mobility and other specific type of needs required. Some of the specific needs includes
how to inform those customers with vision impairments and those who are partially impaired
while booking, those with hearing impairments and others such as mobility type of assistance.
This will be achieved by coming up with a facilitation plan that involves all customer needs
while traveling.

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The project’s details and scope.
The Qantas is known to be the largest Australian international and also domestic
airline. It is said to have a total of 37,000 employees who provides high class special services
across the network which covering almost 145 top destinations within the 37 target countries.
The airline has been used to serve war and enhance peace protecting the nation thus is
recognized by many as ‘the Australian spirit’ having the logo of kangaroo which has given it a
strong branding image (Freiberg, 2011).
It is one of the strongest brands in Australia which has a pride of history of reliability,
safety and also excellent customer service. Its aim is to provide both domestic and also
international kind of connectivity which also offers different kinds of premium services which
includes high quality modes of in-flight airline services, the most convenient part of it is the
check inns, holiday packages, Qantas lounges and clubs and also the car travelling rental
services. Though it mainly targets the business travelers.
The established problems, opportunities, issues and targets.
Problems
There is a problem of having alternatives modes of transport which are cheaper and as
well has a high speed almost the same as the airplane. For example, the advanced high speed
railway plan which is aimed to come from Melbourne to Brisbane (Rood, 2011). This s great
problem that could ruin the great market share of the Qantas domestic Flights.
Even though Qantas is the most competitive airline within the market, it still faces some
problems. One of them being increased tax which is estimated to be around $648 million during
the year 2016/2017. December 2017, the management had already announced that they had to

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freeze some of the wage in order for the group to ensure a full year part of underlying profit.
Costs of operating and other forms of higher labor which were from the competitor’s part of the
disputes that broke in between the management with the other side of the militant union, this also
included the safety incidences that had tarnished the clear Qantas image. Thus, Qantas may be
required to sacrifice a significant amount of costs in order to promote and boost their high
reputation which is within the market area (Rowcroft, 2014).
The auditor is supposed to be aware that most of the employees in this business may
not fully produce the efficiency level as required by the company. Thus, a control mode of
working should be imposed with well-defined policies and forms of regulations within these
departments. This may allow the employees and also the managers to assist the Qantas to
maintain its focus.
Opportunities
A survey was done in 2015 which revealed that almost 90% of the surveyed were
eagerly ready to take a trip from within the Australia (Nuutinen, 2011). Thus the results showed
that people have already adopted the technique of travelling more often with the comparison to
the olden days of around 20th century times which seems to be a direct kind of consequence due
to globalization. Qantas being a first choice with a variety of customers has expanded their new
lounges which with time are expected to open the current domestic markets and also overseas
which are the likes of los Angeles and some parts of Singapore.
Issues and targets.
Competition within the Qantas industry has never been a loose end. Thus the competition
faced due to the fairly growing number of cheaper airlines and also the low cost airlines have

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impacted to the Qantas’s target market share which is experienced mostly within Asian parts of
the regions (Young ,2015). In addition to this, foreign exchange and fuel agency has become a
great risk to the Qantas group. The other is the industrial relations which has become a key risk
in the Qantas group. Thus, this should only focus the financial rates since this might require to
gradually increase its rate in order to fit to the rising inflation.
Established research theory and framework
This report is aimed at providing the analysis which covers both the external and also the
internal factors which influences the strategies of the Qantas airline with the aim of achieving its
strategic goals within this industry of aviation. Using principle of SWOT analysis technique
where these external factors are analyzed is important in determining the opportunities and also
the threats that Qantas industry is facing. On looking into the other hand, internal audit is
analyzed which involves trying to understand resources that Qantas have and competencies
which most likely are aimed to create provision of a competitive advantage which is more
sustainable in order to identify Qantas current position of its competition. Lastly, Qantas has a
generic business mode of strategies that are also captured through analyzing its objectives and
strategic statements.
Recommendation
It is necessary and appropriate for the Qantas to fully analyze both its internal and external
factors that determine its business strategies and also its branding position since understanding
the external environment will assist in understanding the possible threats and opportunities
(Graham, 2010). By making sure that Qantas has fully potential to overcome these kind of
threats and that it seizes such opportunities, Qantas is supposed to look keenly and carefully to

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its most stable strengths and also the most prone weaknesses by analyzing its capabilities which
are more strategic and advantages that are more competitive. With this believe of having a
sustainable competitive advantage which includes having branding image that is globally
recognized, strong financial management, strong reputation, excellent services towards the
customers and good airport facilities may help the industry to compete and provide capability of
survival within the aviation industry.
Conclusion
From the analysis which was performed in regard to the factors that influenced the
strategic analysis in the Qantas industry has clearly showed that Qantas is one of the most
popular airline which is in Australia which is currently seeking rapid growth and expansion
towards the international form of markets. While analyzing the Qantas vision, values and its
mission indicates the idea that it’s a very focused company with high levels of strategic
management in ensuring safety and growth at very high levels. This has been maintained by
offering services which are premium towards their customers. By use of this rapid kind of
strategies has increases Qantas chances of achieving the company’s set goals within the domestic
level and also in the international market level. This has proven the effectiveness of the support
staff and the management to be functional part of achieving successfully in execution and
attaining of the business strategies corporate that has made Qantas goals possible.

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References
Barkin, T. I., Hertzell, O. S. and Young, S. J. (2015) Facing low-cost competitors: lessons from
US airlines, McKinsey Quarterly, 4, pp. 86–99.
Franke, M. (2013) Competition between network carriers and low-cost carriers—retreat, battle or
breakthrough to a new level of efficiency? Journal of Air Transport Management, 10(1),
pp. 15–21.
Freiberg, K. and Freiberg, J. (2011) Nuts! Southwest Airlines’ Crazy Recipe for Business and
Personal Success (London: Texere).
Graham, A., 2010. Demand for leisure air travel and limits to growth. Journal of Air Transport
Management 6, 109-118.
Homsombat W., Lei Z. and Fu X. 2014. Competitive effects of the airlines-within-airlines
strategy - pricing and route entry patterns. Transportation Research - Part E, 63, 1- 16
Lindstädt, H. and Fauser, B. (2004) Separation or integration? Can network carriers create
distinct business streams on one integrated production platform? Journal of Air Transport
Management, 10(1), pp. 23–31.
Nolan, J. F., Ritchie, P. and Rowcroft, J. (2009) September 11 and the world airline financial
crisis, Transport Reviews, 24(2), pp. 239–255.
Nolan, J. F., Ritchie, P. and Rowcroft, J. (2014) September 11 and the world airline financial
crisis, Transport Reviews, 24(2), pp. 239–255.
Nuutinen, H. (2016) US low cost airlines: the barriers to entry go up again, Avmark Aviation
Economist, November, pp. 4–11.

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Nuutinen, H. (2011) Australia low cost airlines: the barriers to entry go up again, Avmark
Aviation Economist, November, pp. 4–11.