Strategic Management on Qantas Airway

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  • Topic: Airline, Qantas, Singapore Airlines
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Qantas Airway

Strategic Management BUSM 3125
Group Assignment 2

Jonathon Reid
Sindra
Hao Ming Lee – S3301727

Table of Content

Executive Summary 3 Background Information 4 SWOT Analysis 5 PESTEL Framework Analysis 6 Porter’s Five Forces Analysis 9 Qantas’ Strategic Capabilities 12 VRIN Model 14 Qantas’ Value Chain 16 Qantas’ Generic Strategies 17 Conclusion 19 Reference List 20

Executive Summary
This report is going to provide a fundamental analysis inboth external and internal factors that influence Qantas Airway in competing in the aviation industry. The PESTEL framework is applied to identify how issues in the political, economic, social,technological, environmental and legal environment may affect the industry within which Qantas operates. Moreover, Porter’s five forces model also helps identify the attractiveness of the airline and aviation industry related to five competitive forces: the threat of entry, the threat of substitutes, the power of buyers, the power of suppliers and the intensity of rivalry among competitors in the existing industry (Johnson, Whittington & Scholes 2011). The external analysis is essential to determine Qantas’ opportunities and threats. Whereas the internal analysis includes understanding Qantas’ resources and competences that are likely to provide sustainable competitive advantage, identifying Qantas’ competitive position using VRIN model (value, rarity, inimitability and non-substitutability), examining Qantas value chain analysis by evaluating the primary and support activities that the company performs and analysing its weakness and strengths. Finally, Qantas’ generic business strategies are also going to be examined by analysing it strategic statement and objective.

Background Information
Qantas (Queensland and Northern Territory Aerial Services Limited) is Australia’s largest domestic and international airline. It employs 37,000 staff and provides services across a network that covers 145 destinations in 37 countries (Qantas Airways Limited 2007. It is known as the world's leading long distance airline, providing pioneered services from Australia to North America and Europe. It was established in the Queensland outback in 1920 by William Hudson Fysh and Paul McGuinnes. The business started with small biplanes carrying one or two passengers. It the first airline that invented business class travel in 1979 which now becoming a global standard (Qantas 2009). Moreover, the airline has served through war and peace to protect and support the nation therefore Qantas has been recognized as ‘Spirit of Australia’ with the red kangaroo logo that gives a strong brand image. Today, Qantas is widely regarded as one of Australia’s strongest brands with a proud history of reliability, excellent customer service and safety. It provides international as well as domestic connectivity and offers premium services including high quality in-flight services, convenient check in, Qantas club, holiday packages and car rental facilities. Its main target market is business travellers.

SWOT Analysis
Strengths * Extensive network / member of the One World Alliance * Globally recognised brand...
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