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Jet Star: Quantas’ Business Level Strategy

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Jet Star: Quantas’ Business Level Strategy

Page 1 of 7
Written Case Report
Case “Jet Star: Quantas’ Business Level Strategy”

Abstract
Qantas is the largest Australian airline company. The industry in which Qantas exists seems to be attractive as it brings enormous profits for the company, however, new entrants would face many difficulties in the entering this industry. Qantas uses two-brand growth strategy while offering two types of service: premium and low-price. The premium service is being delivered by the company itself and the low-price service is delivered by subsidiary of Qantas named Jet Star that was established in order to avoid price wars with big competitor Virgin Blue and maintain the Qantas image of being premium services offering company. Qantas uses differentiation business-level strategy while Jet Star uses cost advantage business-level strategy. Jet Star achieved many functional efficiencies that helped the company to reduce its costs and maintain low prices offered. In the future Jet Star is likely to face some major operational challenges.

Table of contents
Introduction4
The main driving forces of competition for Qantas as per Porter’s five forces model4
The Reason of why Jet Star was created. Did it serve the purpose?5
Business level strategies in operation. the possible duration of these6
The key functional efficencies that Jet Star achieved7
Possible major operational challenges in the near future8
Conclusion8
References10

Introduction
Qantas is the largest Australian airline. It uses two-brand strategy by offering premium services delivered by Qantas and low-price services offered by company’s subsidiary Jet Star. The aim of the report is to do an analysis of Qantas company’s business strategy. In the report the definition of driving forces of competition for Qantas will be provided, the reason why Jet Star was created will be defined, the business level strategies and key functional efficiencies of the company will be described, and, finally, the possible...