Qantas Airways Strategy

Topics: Airline, Marketing, Sydney Airport Pages: 8 (2001 words) Published: August 9, 2010

This Internet strategy paper is prepared for Qantas Airways with the aim of analyzing how Internet marketing was incorporated in the company’s business strategy. Gathering of needed information was done through utilizing electronic databases and journals from the library, as well as books related to the topic. In addition, websites of the various businesses involved were viewed for the latest company news and information.

For the purposes of this paper, the Qantas Group is narrowed down to one of its business units, which is Qantas. Furthermore, the competitors considered are all home grown Australian airlines. At present, Jet Star, Virgin Blue, and Tiger Airways are all side-by-side Qantas in the endeavor to win the hearts of consumers by delivering the service more efficiently than rivals.

The company’s internet marketing strategies prove that there is more to Qantas than meets the eye. The company manages an interactive website, where information about the company and its services are readily available, as well as planning and booking a flight. These services are employed by Qantas to augment their core offering which is the air travel. Increasing sales indicate that their online marketing is generating customers. Even so, complacency is not an option.


A. Qantas Airways

Originally launched as Queensland and Northern Territory Aerial Services, Qantas Airways takes on both international and domestic air transportation services. This reputable company was established in 1920, making it the world’s second oldest airline (Datamonitor 2007).

B. SWOT Analysis

‘A business unit must monitor key macroenvironment forces and significant microenvironment factors that affect its ability to earn profits’ (Kotler & Keller 2009, p. 50). It is then necessary for Qantas Airways to be aware of such factors in their endeavor to develop a good marketing strategy.

Table B-1 Strengths, Weaknesses, Opportunities and Threats for Qantas Airways |Strengths |Weaknesses | |Excellent reputation |Over reliance to the Australian market | |Strong market position | | |Opportunities |Threats | |Flourishing travel and tourism industry |Intensive competition | |Technological advancements |Mounting oil prices | |Open Skies Policy |Economic recession | | |Security responsibilities |

From the table above, it can be inferred that Qantas Airways’ 40 years in the business has allowed the company to build a good reputation, leading to its current strong market position. According to Datamonitor (2007), the company has 30% and over 65% market share in the world airline market and domestic airline market, respectively. However, Qantas Airways should take note of its dependence to the Australian market where the company yields 70% of its profits. This huge percentage could greatly affect the company if the sales in Australia do not continue to meet expectations.

One focal reason behind the success of most airline businesses is the booming global travel and tourism industry. More people nowadays realize the value of tourism, resulting into more prospects for the company. Additionally, Qantas should take advantage of emerging new...
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