Strategic Management Analysis of Qantas Airways - MGT300 Report

This report provides a strategic management analysis of Qantas Airways, focusing on its business-level strategy within the airline industry. It begins with a brief history of the organization and its strategic development, followed by an examination of the competitive dynamics and rivalry within the industry, specifically mentioning the duopoly with Virgin Group. The report then delves into Qantas' competitive advantages, including its frequent flyer program and the acquisition of Jetstar. It analyzes the internal and external environments, detailing strengths, weaknesses, opportunities, and threats (SWOT analysis), as well as political, economic, social, technological, legal, and environmental factors. The report also outlines the development, implementation, and monitoring of strategy at a business level, including objectives and an action plan. Finally, the report concludes with recommendations for Qantas Airways, such as employee training and enhanced social media communication, and references relevant academic sources.

Running head: STRATEGIC MANAGEMENT ANALYSIS OF QANTAS AIRWAYS
STRATEGIC MANAGEMENT ANALYSIS OF QANTAS AIRWAYS
Name of the Student
Name of the University
Author Note

1STRATEGIC MANAGEMENT ANALYSIS OF QANTAS AIRWAYS
Executive Summary
The report is built on the business level strategy that has been applied by an international
organization in order to uphold its competitive advantage in the industry. The organization that
has been taken into consideration for this study is Qantas Airways that is a flag carrier airlines
company in Australia. The business level strategy of Qantas Airways has been discussed along
with its competitive benefit and sustainability based activities. The internal and external
environment based factors of Qantas Airways have been discussed in the report in detail. The
future objectives of the organization have also been suggested along with the action plan.

2STRATEGIC MANAGEMENT ANALYSIS OF QANTAS AIRWAYS
Table of Contents
Introduction......................................................................................................................................3
A brief history of the organization and its business level strategic development...........................3
The competitive dynamics and rivalry within the industry.............................................................4
Competitive advantage and sustainability.......................................................................................5
The internal and external environments of the organization...........................................................5
Internal environment factors that influence Qantas Airways......................................................5
External environment factors that influence Qantas Airways.....................................................6
The development, implementation and monitoring of strategy at a business level.........................8
Recommendations............................................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

3STRATEGIC MANAGEMENT ANALYSIS OF QANTAS AIRWAYS
Introduction
Business level strategies can help the organizations in different industries so that they are
able to achieve a competitive benefit in the market. The strategies are also able to offer major
value to the customers by using the core competencies of organizations in an effective manner.
Business level based strategies are considered to be a mechanism for the business that is able to
provide a competitive edge in the respective industries (Aguinis, Edwards & Bradley, 2017). The
report will be based on the study of business level strategies that are implemented by Qantas
Airways. The rivalry levels and competitive dynamics within the industry will also be discussed
in the report in detail.
A brief history of the organization and its business level strategic development
Qantas Airways is a flag carrier based airlines organization in Australia and the
organization has also gained position of biggest firm with respect to the fleet size that operate in
the international destinations. Qantas is the third oldest airlines firm in the entire world after
organizations like Avianca and KLM. The airlines organization is mainly based in the Sydney
suburb of Mascot that is adjacent to the main hub located at the Sydney Airport. Qantas has been
able to gain around 65% of the total shares in domestic market of Australia in the last few years
(Qantas.com, 2020).
The business level strategy of an organization like Qantas Airways will be based on the
methods by which it is able to able to use the resources in order to gain a major competitive
benefit in the industry. The sustainable competitive advantage will be based on the proper usage
of resources and the commitments that have been made as well. The development of business
level strategy is related to the value that is created by Qantas Airways for the customers.

4STRATEGIC MANAGEMENT ANALYSIS OF QANTAS AIRWAYS
Competitive advantage can be achieved with the application of differentiation or cost leadership
strategy (Anwar, 2018). The longevity and unique position formed by Qantas Airways is based
on the methods by which the organization is able to cover the diverse national market with the
help of its diverse services and products. The strategy of Qantas Airways is thereby driven by
proper segmentation of the routes that are able to fulfil travel based needs of the consumers. The
services are thereby differentiated by Qantas Airways with the proper reduction of operational
costs. Increased revenues and sustained reduction of costs have been based on the proper
implementation of business level approach of the organization (Daspit et al., 2017).
The competitive dynamics and rivalry within the industry
The domestic airlines industry of Australia is mainly dominated by the classic duopoly of
two major airlines organizations including Qantas Group and the Virgin Group. Qantas is
considered to be one of the oldest airlines based organization in the country. On the other hand,
Virgin had started its operations in the year 1999 as low cost based carrier and the organization
had been successful in fulfilling the gap that existed in the market. Virgin had been able to depict
huge levels of growth in the airlines industry after the stoppage of the operations of Ansett in the
year 2001. Virgin was then able to become the second largest airlines organization in the
industry after Qantas Airways. Air travel had been able to depict the ways by which people lives
and had experienced the world as well. The airlines industry is considered to be a strategic sector
that is able to play a key part in the proper enhancement of globalization of the other industries.
The strength of competition in the industry is considered to be a key aspect that is able to
influence the operations of the firms. Competition is also able to create major levels of tension in
the industry that has an influence on the strategies implemented by an organization like the
Qantas Airways (David & David, 2016).

5STRATEGIC MANAGEMENT ANALYSIS OF QANTAS AIRWAYS
Competitive advantage and sustainability
Qantas Airways has aimed at the development of competitive benefit in the airlines
industry with the help of differentiated advantage and cost based advantage. The frequent flyer
program has been implemented by Qantas in order to enhance the levels of customer loyalty. The
program had been able to motivate the consumers so that their travel based activities can be
increased in an effective manner. The cost based advantage of Qantas Airways has been
achieved with the support that is provided by the acquisition of Jetstar that is a low cost based
airlines organization (Gul, 2020).
The internal and external environments of the organization
Internal environment factors that influence Qantas Airways
Strengths
 The huge brand reputation of Qantas
Airways is a major strength of the
organization.
 The on-time based quality of services
offered by Qantas Airways has
enhanced the operations of the firm
(Hanson et al., 2016).
Weaknesses
 The decline in performance levels of
Qantas Airways is a major weakness
depicted by the organization.
 The failure of strategy implemented
by Qantas Airways is also another
weakness of the firm (Hitt, Ireland &
Hoskisson, 2016).
Opportunities
 The ability of Qantas to tap the growth
related opportunities is able to
enhance the revenues of the firm.
Threats
 The increase in levels of competition
in the airlines industry is considered to
be a major threat for Qantas Airways.

6STRATEGIC MANAGEMENT ANALYSIS OF QANTAS AIRWAYS
 The changes that can be implemented
in the strategies to achieve growth are
able to influence the revenues gained
by Qantas (Jannesson, Nilsson &
Rapp, 2016).
External environment factors that influence Qantas Airways
Political factors  The intervention of government in
proper formation of the procedures
and policies is considered to be a
major political aspect that is able to
affect Qantas Airways.
 The deregulation of airlines based
industry that had taken place in the
year 1990 has led to the increase in
levels of competition (Walsh &
Dodds, 2017).
Economic factors  Global financial crisis has an adverse
impact on the performance levels of
Qantas Airways.
 The rise in prices of fuel has also been
able to enhance the prices of services
that are provided to the consumers

7STRATEGIC MANAGEMENT ANALYSIS OF QANTAS AIRWAYS
(Wongleedee, 2017).
Social factors  Societal trends have an impact on
performance of an organization like
Qantas Airways.
 The choice of the consumer and their
income levels can also have an impact
on the services that are offered by
Qantas (Walsh & Dodds, 2017).
Technological factors  Technology is considered to be a
significant aspect related to
improvement of operations of Qantas
Airways.
 The online ticket booking process that
is implemented in the industry is able
to influence Qantas Airways
(Jannesson, Nilsson & Rapp, 2016).
Legal factors  The carbon tax based aspects have an
impact on the prices of services that
are offered by Qantas Airways.
 The legal formalities and regulations
can have a major influence on Qantas
Airways (Gul, 2020).
Environmental factors  Environment factors have a major

8STRATEGIC MANAGEMENT ANALYSIS OF QANTAS AIRWAYS
impact on the image that is created by
Qantas Airways in the industry.
 The reduction of carbon footprint is
considered to be a key aspect that is
related to the operations of Qantas
Airways (David & David, 2016).
The development, implementation and monitoring of strategy at a business
level
Business level strategy objectives of Qantas Airways – Qantas Airways can aim at the improvement of services that are provided to the
consumers in order to enhance the revenues.
 The training needs to be provided to the employees so that they are able to
improve their individual skills.
 The social media communication has to be developed in order to improve the
consumer base and revenues as well.
Action plan for Qantas Airways –
Action required Who will do this? By when? Where will it be
reported?
Training provided to
employees
Human resource
manager
1 year Management level

9STRATEGIC MANAGEMENT ANALYSIS OF QANTAS AIRWAYS
Social media
communication
Marketing manager 1 year Management level
Recommendations
The major recommendations that can be provided to Qantas Airways for its future
improvement are as follows,
 Qantas Airways needs to provide training to the employees in order to enhance
their talent levels and performance in the organization as well.
 The customer services that are provided by employees have to be improved in
order to enhance the loyalty levels.
 Social media platforms have to be used by Qantas Airways in order to improve
the communication with consumers.
Conclusion
The report can be settled by asserting that the business level strategies developed by an
organization are influenced in a huge way by the changes that take place in the external and
internal environment as well. However, an organization like Qantas Airways will be able to
maintain its position and competitive benefit in a sustainable manner with the support that is
provided by the effective business level strategies.

10STRATEGIC MANAGEMENT ANALYSIS OF QANTAS AIRWAYS
References
Aguinis, H., Edwards, J. R., & Bradley, K. J. (2017). Improving our understanding of
moderation and mediation in strategic management research. Organizational Research
Methods, 20(4), 665-685.
Anwar, M. (2018). Business model innovation and SMEs performance—Does competitive
advantage mediate?. International Journal of Innovation Management, 22(07), 1850057.
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).
David, F., & David, F. R. (2016). Strategic management: A competitive advantage approach,
concepts and cases. Pearson–Prentice Hall.
Gul, M. (2020). Digital business strategies and competitive superiority. International Journal of
Business Ecosystem & Strategy (2687-2293), 2(1), 17-31.
Hanson, D., Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management:
Competitiveness and globalisation. Cengage AU.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.
Jannesson, E., Nilsson, F., & Rapp, B. (2016). Strategy, control and competitive advantage.
SPRINGER-VERLAG BERLIN AN.

11STRATEGIC MANAGEMENT ANALYSIS OF QANTAS AIRWAYS
Qantas.com, (2020). Fly With Australia’S Most Popular Airline | Qantas AU. [online]
Qantas.com. Available at: <https://www.qantas.com/au/en.html> [Accessed 22 March
2020].
Walsh, P. R., & Dodds, R. (2017). Measuring the choice of environmental sustainability
strategies in creating a competitive advantage. Business Strategy and the
Environment, 26(5), 672-687.
Wongleedee, K. (2017). Customer satisfaction in the airlines industry: comparison between low-
cost and full service airlines. Актуальні проблеми економіки, (1), 218-222.
Yadav, P. L., Han, S. H., & Kim, H. (2017). Sustaining competitive advantage through corporate
environmental performance. Business Strategy and the Environment, 26(3), 345-357.