BIZ202 - Qantas Airways: Micro Environment Analysis and Challenges

This report analyzes the micro-environmental factors affecting Qantas Airways, including consumer behavior, competitor analysis, public opinion, and employee relations. It identifies challenges such as high competition and negative public opinion stemming from poor social media interactions. The report suggests solutions like improving customer service through enhanced social media engagement and 24/7 call center availability, as well as offering discounts and vouchers to boost market share and customer loyalty. By addressing these challenges, Qantas can improve its brand image, increase customer satisfaction, and maintain a competitive edge in the airline industry. The company's focus on employee retention through diversity and inclusion is also highlighted as a key factor in achieving success.

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Table of Contents
Introduction of the Qantas Company...................................................................................2
Micro environmental factors of Qantas Company...............................................................2
Consumer behavior..........................................................................................................2
Competitors analysis........................................................................................................3
Public opinion..................................................................................................................4
Employees........................................................................................................................4
Challenges and solutions.....................................................................................................5
Improvement in the customer service..............................................................................5
Offering discounts and vouchers......................................................................................5
Conclusion...........................................................................................................................5
References............................................................................................................................6
Appendix..............................................................................................................................7
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Introduction of the Qantas Company
Qantas Airways is considered as one of the largest airline company by fleet size,
international flights and international destinations. It is known as one of the oldest airline on the
global platform after KLM and AVIANCA. Headquarter of the company is in MASCOT,
Australia. The subsidiaries of the company are Jetstar , Qantas LINK and Qantas freight. There
are more than 26,150 employees who are managing the activities on the routine basis. The slogan
of the company is “THE SPIRIT OF AUSTRALIA”. The hubs of the company are in Sydney
airport, Brisbane airport and also in Perth Airport ( QANTAS,2019).
Micro environmental factors of Qantas Company
It has been observed that the micro environmental factors of the company are: consumer
behavior, competitor’s analysis, public opinion and employees.
Consumer behavior
It can be said that customer behavior is one of the factor that influence the overall
activities of Qantas Company. Customers are considered as one of the assets of the company.
The consumer market of the company focuses on middle and high class people who avail the
services for their personal and well as for business use. The company has expanded the market
share in many countries such as in Europe, Africa and America (Iatrou & Oretti, 2016). To create
positive customer relation the company emphasizes on opening different avenues so that it could
be easy for the passengers to use its services. Qantas considers the customer value concept that
helps to generate and deliver the values of the service without sacrificing the overall profits.
Other then providing the seats to the customers in flights, the company also emphasizes on
offering other facilities such as online check in service and also the parking facilities. This can be
considered as one of the factors that impact the performance and growth of the business in the
highly competitive market (Roy Morgan. 2019).
It has been observed that company emphasizes on maintaining the customer behavior and
this has boosted the customer satisfaction level of the customer in 2018. Among all the
companies Qantas has attained 86.4% in terms of the customer satisfaction. So, it is important for
the company to maintain its customer behavior as it impacts the performance and growth of the
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company in the market. But if it is not managed effectively then it can negatively impact the
growth in the market (Roy Morgan, 2019).
(Source: Roy Morgan, 2019).
Competitors analysis
It can also be considered as the micro environmental factor as it influences the activities
of the company. In the present scenario, it is analyzed that company is facing a huge level of
competition in the market. There are many competitors who are influencing the sales of the
company. The competitors of the company are United Airlines, Singapore Airlines and also
American Airlines. These are the competitors that are negatively impacting profitability and also
the market share of the company. The market of the company has been reduced in comparison to
the competitors such as Emirates and others. In comparison to the others, the market share of the
company in 2016 was only 16% ( Qatar, 2019).
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(Source: Qatar, 2019).
Public opinion
It is also one of the internal factors that are influencing the business operations. It has
been analyzed that in the present scenario, the public criticized in relation to the bad social media
service. The company has been criticized for its mechanical, impersonal social media response
that has boosted the chaos of the customers. The Qantas is criticized about the corporate, wooden
approach to communicate with the customers through over the weekend (Coorey, 2011). Due to
this incident, negative impact has been seen that in terms of the brand image in the market which
has also affected the growth of the company in the competitive market.
(Source: Moses, 2011).
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Employees
Qantas operational activities are managed by the customers and it is important to focus on
maximizing the satisfaction level so that they can give their best towards the assigned work.
Also, Qantas considered the retention policy for the customers so that it could be easy to attain
positive results. To retain the employees in the workplace, it can be analyzed that the company
focuses on the strategy of inclusion and diversity. The company value diversity of thoughts and
experience that has helped to achieve success. The long term commitment is made by the
company in which the company will focus on merit based gender diversity for the Australian
aviation in which the target will be appointing 40% of the female pilots in 2028(Qantas, 2019).
So, this strategy has helped the company to attain success in the competitive market and also the
changes were in the policies of the company. By considering this idea, it can be seen that the
company will be able to achieve growth in the competitive market.
Challenges and solutions
Therefore, it can be stated that the company has to face different challenges that influence
the business operations. The challenge is related with public opinion and also with high
competition level. So, to control these challenges it is important for the company to focus on the
strategies so that it could be easy to resolve the challenges faced by the company.
Improvement in the customer service
It is important or the company to focus on bringing improvement in the customer services
as it will help to boost positive public opinion in the competitive market. The company should
emphasize on solving the queries through social media sites and also by being available 24 hours
through its call centers. It will help to reduce the challenge related to negative public opinion.
Offering discounts and vouchers
Qantas should also emphasize on offering the different vouchers so that it could be easy
for the customers to avail the services in low price as compared to the competitors present in the
market. It will help to reduce the challenge related to high level of competition and will also
boost the market share in the market.
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Conclusion
It is concluded that there are different micro environmental factors that influence the
business operations such as competition, public opinion, employees and consumer behavior.
Also, there are various challenges that are faced by the company like high level of competition
and negative public opinion. So, to reduce these challenges it is important for the company to
focus on improving customer service and Qantas should offer discounts to the customers to boost
performance and market share.
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References
Coorey,P. (2011). Public points its finger at Qantas and PM in poll. Retrieved from:
https://www.smh.com.au/national/public-points-its-finger-at-qantas-and-pm-in-poll-
20111113-1ndtr.html
Iatrou, K., & Oretti, M. (2016). Airline choices for the future: from alliances to mergers.
Routledge.
Moses, A.(2011). Computer says no: Qantas rapped for bad social media service. Retrieved
from:https://www.qantas.com/in/en/qantas-group/acting-responsibly/our-people.html
Qantas . (2019).About us .Retrieved from:
https://www.qantas.com/travel/airlines/about-qantas/global/en
Qantas. (2019). Our people. Retrieved from:https://www.qantas.com/in/en/qantas-group/acting-
responsibly/our-people.html
Qantas. (2019). Qatar airways marketing. Qatar Airways SWOT Analysis 2018-12-22.
Retrieved from: http://comicsstation.be/qatar-airways-marketing.html
Roy Morgan. (2019). Qantas flies with high customer satisfaction early in 2018.Retrieved from:
http://www.roymorgan.com/findings/7560-csa-results-february-2018-domestic-airline-
satisfaction-201804130355
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Appendix
Micro environmental factors
1. Consumer behavior
 Market share : in Europe, Africa and
America
 Customer value concept
 Parking facilities
 Online check in service
 Achieved 86.4% in terms of the
customer satisfaction.
2. Competitors analysis
 High competition
 Competitors are :
 United Airlines
 Singapore Airlines
 American Airlines
3. Public opinion
 Negative
 Bad social media service
 Criticized about the corporate,
wooden approach to
communicate
 Affected brand image
4. employees
 Retention policy
 Value diversity of thoughts and
experience
 long term commitment
 Appointing 40% of the female
pilots in 2028.
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