Qantas Airways Strategic Management: Business Level Strategy Analysis

This report provides a comprehensive analysis of Qantas Airways' strategic management, focusing on its business-level strategies and value chain. The report begins by introducing the concept of business-level strategy and its importance in achieving a competitive advantage. It then evaluates Qantas Airways' key business-level strategies, including differentiation, cost leadership, and focus strategies, highlighting how these strategies have contributed to the airline's success in the industry. A detailed value chain analysis is conducted, examining both primary activities (inbound logistics, operations, outbound logistics, marketing and sales, and service) and secondary activities (firm infrastructure, human resource management, technology development, and procurement) to identify areas where Qantas Airways creates value for its customers. The analysis reveals how Qantas Airways has developed an effective value chain to operate profitably in the Australian airline industry, outperforming competitors like Air New Zealand and Virgin Atlantic by providing high-quality services at competitive costs. The report concludes that Qantas Airways' strategic approach and well-developed value chain are crucial for its sustainable success in the airline industry.

Running head: STRATEGIC MANAGEMENT
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Name of the Student
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Author Note

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Table of Contents
Post 4..............................................................................................................................2
Introduction to business level strategy.......................................................................2
Evaluation of the key business level strategy of Qantas Airways.............................2
Value chain analysis of Qantas Airways....................................................................2
Conclusion..................................................................................................................4
References..................................................................................................................5
Appendix........................................................................................................................6

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Post 4
Introduction to business level strategy
Business level strategy is based on the set of detailed actions that are performed in
order to provide effective value to the customers and further develop a competitive advantage
in the industry as well. Business level strategy is considered to be important for the
organization as it is helpful for the organizations to take effective decisions based on the
business objectives (Barros, Hernangómez & Martin-Cruz, 2016). The report will be based
on the business level strategy that has been implemented by Qantas Airways.
Evaluation of the key business level strategy of Qantas Airways
Qantas Airways has achieved competitive advantage in the airlines industry with the
help of differentiation strategy with the help of its diverse levels of services. The cost
leadership based strategy has been implemented by the organization in order to increase the
customer base.
The differentiation strategy of Qantas Airways is based on the segmentation of the
routes which are covered by the flights. The operational costs are reduced and services are
offered to the customers at lower costs with respect to the cost leadership based strategy. The
focus strategy is implemented by the organization in order to provide effective services and
goods to the specific segment of customers (Daspit et al., 2017).
Value chain analysis of Qantas Airways
The diversification strategy has been implemented by Qantas Airways with the aim to
develop an effective value chain and a huge customer base as well. The organization has
provided greater levels of value to the customers in Australia as compared to its competitors
Air New Zealand and Virgin Atlantic. Qantas Airways is thereby famous in the industry for
providing high levels of services at lower costs. The value chain of Qantas Airways has been

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developed in such a manner which is able to lead to a sustainable future of the organization
(Durand, Grant & Madsen, 2017).
The value chain of an organization is based on primary and secondary activities that
are described below,
Primary activities –
Inbound logistics is considered to be a significant portion of the processes of Qantas
Airways in the industry which enables the organization to provide its services to customers.
The operations of Qantas Airways are based on three major groups that include, customer,
commercial and sales and marketing. Outbound logistics are based on the activities that are
outsourced by the organization to other companies. The sales and marketing department is
considered to be important for increasing awareness of the products among the specific
groups of customers. The services that are provided by Qantas Airways are able to help the
company to maintain its loyal customer base and increase the levels of profitability as well.
Secondary activities –
The infrastructure that has been established by the company in the airlines industry is
massive in nature and has provided the organization with the topmost position. The
organization has become the flagship airline company in Australia. The infrastructure has
played a key role in the ways by which Qantas Airways has been able to operate in the
industry. The human resource department is considered to be the most significant part of the
effective processes of the organization in the airlines based industry. The employees are
mainly able to provide services to the customers which are helpful in increasing the levels of
profitability. The IT department of Qantas Airways operates in the head office of the
organization which is considered to be significant in improving the operations and

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profitability levels as well. The activities related to supply and procurement are considered to
be highly significant for increasing the effectiveness of the operations of Qantas Airways.
Conclusion
The report can be settled by stating that Qantas Airways has been able to form an
effective value chain in order to function profitably in the Australian airlines based industry.
The strategy which has been implemented by the organization is also highly important.

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References
Barros, I., Hernangómez, J. & Martin-Cruz, N. (2016). A theoretical model of strategic
management of family firms. A dynamic capabilities approach. Journal of Family
Business Strategy, 7(3), pp.149-159.
Daspit, J.J., Chrisman, J.J., Sharma, P., Pearson, A.W. & Long, R.G. (2017). A strategic
management perspective of the family firm: Past trends, new insights, and future
directions. Journal of Managerial Issues, 29(1), p.6.
Durand, R., Grant, R.M. & Madsen, T.L. (2017). The expanding domain of strategic
management research and the quest for integration. Strategic Management
Journal, 38(1), pp.4-16.
Qantas.com. (2018). Our people | Qantas. Retrieved from
https://www.qantas.com/in/en/qantas-group/acting-responsibly/our-people.html

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Appendix
Primary activities
Support activities
Source – Created by author
Primary activities -
Inbound logistics – The inbound logistics are based on the ways by which Qantas
Airways is able to outsource the activities.
Operations – The operations of the organization are divided into three major groups
that include, customer, commercial and sales and marketing.
Yield management – The yield or seats of the flights operated by Qantas Airways are
managed by the yield managers.
Marketing and sales – The organization has an effective marketing based division
which is highly important for the management of the customers (Qantas.com., 2018).
Inbound
logistics
Operations
Outbound
logistics
Marketing
and sales
Service
Firm Infrastructure – massive size
Human resource management –
30,000 employees
Procurement – suppliers
Technology – IT
department
Profit

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Services – The services that are offered by Qantas Airways are based on the flights
that are operated at low costs.
Secondary activities –
Procurement – The organization procures its raw materials from different suppliers in
order to maintain the competition levels.
Human resource management – More than 30,000 people are a part of the human
resources of Qantas Airways.
Information technology – The IT division of the organization is a part of the head
office operations in Sydney.
Infrastructure – The immense infrastructure that has been developed by Qantas
Airways is important for its revenues and profitability (Qantas.com., 2018).