Img, Qantas Expansion to Vietnam
Case Study: QANTAS (Jetstar Pacific)
Qantas Airline is considered to provide the longest distance travel in the world’s leading aviation. Qantas works alongside Jetstar, which is known as the lowest domestic and international fare provider in Australia and Singapore (Qantas Airways Limited 2013). Qantas has expanded its operations internationally to Vietnam through Jetstar Pacific by the joint venture strategic alliance (Trade Dealer 2012). In this case study it is essential to understand firstly that when operating in other country, external environment must be scanned, monitored and analysed in order to overview opportunities and threats (Hanson, Hitt, Ireland & Hoskisson, 2011). Secondly, it is substantial to overview the different cultural dimensions and how they differ between Australia and Vietnam. Thirdly, this difference will support the way HR functions vary across these cultures. Finally, recommendations to the CEO will be given based on the findings.
Qantas’s subsidiary business Jetstar Pacific, have entered into the Vietnamese airline market as the lowest air fare provider by locating its headquarter in Ho Chi Minh City (largest city in Vietnam) and flying directly from Australia to Vietnam (AmCham Vietnam 2008). The reasons for going globally can be decided upon the reactive point of view. It is fair to say that Qantas’ joint venture with Vietnam Airlines emerges as the result of higher competition as well as customer demands (Quang, Heijden, & Rowley, 2010) meaning that the airline is responding to the external environment by implementing low-cost and direct flights from Australia to Vietnam (Singh, 2006). The external environment can be analysed through economic, demographic and legal-political segments. The economic segment refers to the attributes and control of the economy in which a firm competes (Ellinger & Wang, 2011). For example, Australia and Vietnam are part of the Asia- Pacific Economic Operations (APEC) which enhances
Qantas Airline is considered to provide the longest distance travel in the world’s leading aviation. Qantas works alongside Jetstar, which is known as the lowest domestic and international fare provider in Australia and Singapore (Qantas Airways Limited 2013). Qantas has expanded its operations internationally to Vietnam through Jetstar Pacific by the joint venture strategic alliance (Trade Dealer 2012). In this case study it is essential to understand firstly that when operating in other country, external environment must be scanned, monitored and analysed in order to overview opportunities and threats (Hanson, Hitt, Ireland & Hoskisson, 2011). Secondly, it is substantial to overview the different cultural dimensions and how they differ between Australia and Vietnam. Thirdly, this difference will support the way HR functions vary across these cultures. Finally, recommendations to the CEO will be given based on the findings.
Qantas’s subsidiary business Jetstar Pacific, have entered into the Vietnamese airline market as the lowest air fare provider by locating its headquarter in Ho Chi Minh City (largest city in Vietnam) and flying directly from Australia to Vietnam (AmCham Vietnam 2008). The reasons for going globally can be decided upon the reactive point of view. It is fair to say that Qantas’ joint venture with Vietnam Airlines emerges as the result of higher competition as well as customer demands (Quang, Heijden, & Rowley, 2010) meaning that the airline is responding to the external environment by implementing low-cost and direct flights from Australia to Vietnam (Singh, 2006). The external environment can be analysed through economic, demographic and legal-political segments. The economic segment refers to the attributes and control of the economy in which a firm competes (Ellinger & Wang, 2011). For example, Australia and Vietnam are part of the Asia- Pacific Economic Operations (APEC) which enhances
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