Qantas Airlines: Innovation Strategies and Management Practices

This report examines Qantas Airlines' innovation management strategies, focusing on customer collaboration and technology adoption. It highlights the airline's shift towards leveraging customer feedback for service improvements and innovations, particularly after a past PR crisis. The report details successful innovations such as the introduction of different Economy seat types (Regular, Sky Couch, and Premium Economy) and the implementation of a seat pricing system to maximize revenue. It also discusses the airline's use of advanced systems for managing service disruptions. Furthermore, the report suggests future recommendations, including the development of direct flights from Sydney to London, contingent upon advancements in aircraft technology. The analysis draws from research in services marketing and innovation, emphasizing the importance of customer involvement and technological advancements in achieving competitive advantage within the airline industry. Desklib provides a platform to access this and many other solved assignments.

PART A: MANAGING
INNOVATION IN
ORGANIZATIONS QANTAS AIRLINES

Introduction
 After the public relations (PR) scandal some years back on Twitter,
Qantas Airlines essentially focuses on the existing client base
(passengers) as their primary innovation strategy. Marketing hypothesis
perceives the expanding significance of client cooperation in service
arrangement.

Intro (cont.)
 Through client joint effort, associations learn, meet client necessities
better, and enhance execution. Clients offer a wide base of abilities,
advancement, and interests and speak to a regularly undiscovered
wellspring of information. Organizations such as Qantas Airlines that
draw on the information of their client base (passengers) can gain client
capabilities for use over the span of their innovation exercises.

Intro (cont.)
 Research on client cooperation has explored client coproduction, the utilization of self-
service advancements, and client willful conduct to exhibit how client and friends
parts meet. Besides, research in innovation recommends including clients by
furnishing them with a toolbox to make their own particular innovations or conversing
with lead clients amid the innovation procedure to better see early adopters. Likewise,
Matthias & Schenker‐Wicki (2012) talk about the upsides of "tuning in" to analyze new
mixes of client needs and recognize open doors for innovation.

The Dominant Part
 The dominant part of innovation research considers data securing of
client needs through normal up close and personal gatherings,
individual meetings, center gatherings, and overviews. In spite of the
fact that these procedures obviously are helpful, the expanded
availability and conceivable outcomes of data innovation open new
doors for co-delivering learning.

Collaboration Channels
 Electronic collaboration channels can enable organizations to participate in
progressing discoursed, through which they may accomplish shared
comprehension and understandings with clients. Albeit online correspondence
needs non-verbal signals, and along these lines would never substitute for all
up close and personal association, it speaks to an extra means for exchanges.
Existing research has not considered how information coproduced by clients in
electronic service arrangement may be utilized for innovations.

Prior Research
 Research that has tended to organization-client joint effort issues principally
starts in two writing streams: services marketing and innovation. Inside the
services marketing space, a plenty of studies have tended to different degrees
of client investment amid the service experience. Some writing on client
interest consumes on its positive results for organizations, for example, cost
diminishments, expanded financial effectiveness, and consumer loyalty.

Prior Research (cont.)
 While the initial two results center around fiscal additions, the last looks
at the mental impacts of client coproduction. Other research inside this
stream focuses on procedures to oversee client interest and contends
that clients ought to be dealt with as halfway representatives. Another
subset of writing centers around the parts clients perform, including
clients as profitable assets, value givers, also, contenders to the service
association.

Still on the Prior Research
 Notwithstanding these parts, Mothe & Thuc (2010) analyzes client deliberate conduct, for
example, collaboration, in which the client is a human asset, and cooperation, in which
the client goes about as a hierarchical expert. Taking a constructivist point of view,
Synnøve, Hohol & Håka, 2017) talks about when and how clients move toward becoming
co-manufacturers of the airline service area. Notwithstanding, these research studies
center around client parts in vis-à-vis experiences.
 Research that moves past those eye to eye joint generation circumstances studies the
trial and appropriation of self-service innovations by examining circumstances in which
clients deliver services for themselves without communicating with firm representatives.

The Success of Different innovation types
 Carriers all over the world have been overlooking the Economy cabin for
decades as the companies financed upgrading business-class or first-
class spaces that offer increased profit margins. Nevertheless, as the
major long-haul flights are overnight and take an average time of 100
minutes longer than other carriers, Qantas has chosen to spend its R&D
budget on a design overhaul in the in-flight experience of the
passengers, particularly in Economy.

The Successful Innovation (cont.)
 Effectively, Qantas Airlines introduced 3 types of Economy seats:
Regular Economy, this gives passengers an option to book an empty
seat next to them just before departure. Economy ‘sky couch’ and
Premium Economy. This last classification of Economy targets wealthy
individuals and successful businessmen, in addition to other VIPs.