The aim of this essay is to critically analyse the background of the Qantas and its decision to launch Jetstar on May 2004 that operated around 800 flights a week across network of 14 destinations within Melbourne, Sydney and Brisbane. Secondly, this essay will evaluate how Data Collection Feedback Cycle change model is used to gather major information and to critically analyse it. Thirdly, this essay will critically evaluate the background of Qantas and Virgin Blue and will also highlight various reasons that eventually led the Qantas group for the launch of the Jetstar. Fourthly, this essay will also critically analyse the revenue and profit performance of Qantas prior the introduction of Jetstar i.e. 2002. Fifthly, it will continue to critically evaluate the trend in Qantas and Virgin Blue in 2003. Then the sixth paragraph will also critically evaluate the trend in Qantas after the launch of Jetstar. Lastly, the essay will also look into the annual reports of the year 2005-2009 and critically analyse the significant value added by the Jetstar to the Qantas group; and will critically analyse whether the executive decision of Qantas to launch Jetstar in order to retain the 60% domestic aviation market from its competitors has been a strategic success or not.
This paragraph will critically analyse the change management information gathered to launch Jetstar low cost airline in May 2004 by using the Data Collection Feedback Cycle change model. Nadler (1977) as cited in Cumming and Worley (2009:122) highlights that the Data Collection Feedback model consists of five phases that are (1) planning to collect data, (2) collecting data, (3) analysing data, (4) feeding back data and (5) following up on the data collected. In planning to Gather information to justify change Nadler (1977) argues that primary methods such as, direct interviews with CEO and key change agents, observing and identifying the need for change and the use of un obstructive measure as sampling technique, force field analysis and scatter diagrams, could be used to gather major information. In contrast Danaher have used various published data to trace the evolution of the Jetstar strategy of its initial position, to its efforts to attain price competitiveness and service parity, followed by its highly focused, cost-effective service delivery strategy. Based on it they have developed a hierarchical model with parameters estimated at the individual level. This allows us to study not only how service design and pricing initiatives shift the perceived performance of Jetstar relative to its competitors but also how the airline can move market preferences toward areas in which it has competitive advantage. After done with the planning of the collection of data from competitors performance on its revenue, sales profits, passenger numbers and market share in 2002, 2003 and 2004 against Qantas key performance indicators for the same period between 2002, 2003 and 2004 from the Annual Reports of both Virgin Blue and Qantas domestic operations. Nadler (1977), after the data has been collected data they are analysed using the qualitative change data such as directors report, World Business Briefing /Australia: Airline Profit(2004).The reminder of this essay will critically analyse the data collected from secondary sources such as Annual Reports, newspaper articles and journal articles to analysis the data sourced to evaluate what would be the most effective change to be implemented by Qantas in responding to Virgin Blue competition the Australian aviation domestic sectors.
This paragraph will evaluate the basic background of Qantas and Virgin Blue and will also highlight various reasons that eventually led the Qantas group for the launch of the Jetstar. After the deregulation of Australian aviation market there were several airline companies entering the market however the most significant entrance was of low fare airlines Impulse in June and Virgin Blue in August...
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