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CHAPTER 4

2. Situational Analysis
Swot Analysis of Qantas

Strengths:
Extensive network / part of the One world alliance
Excellent airport locations and facilities
Globally recognised brand name and logo
Excellent safety record – probably the best in the world (not one death on a Qantas flight)
Operational excellence: Qantas has twice won the Cumberbatch trophy for engineering excellence.

Weaknesses:
Speculation that British airways will quit its $1.3 billion stake in Qantas.
Higher labour and other operating costs than its competitors
An ongoing disputes between Qantas management and militant unions

Opportunities:
For its new international budget brand, Australian Airlines
Taking advantage from the Ansett collapse by hiring new staff, expanding routes and purchasing / leasing more aircraft
Developing further E-commerce operations

Threats:
Strategies of its main competitors especially Singapore Airlines and Air New Zealand (international) and Virgin Blue (domestic)
Increase in government regulations to protect its smaller rivals
Rising fuel costs
Further fall in Australian dollar
Further weakening in the international market / economy

As a result of Ansett’s collapse, Qantas is currently in the growth stage domestically (with increased sales, revenue and market share) but in the decline stage internationally. In response Qantas has planned to hire more staff and increase the Qantas fleet by 15% by long-term leases and purchasing new aircraft. Also by establishing a discount airline called Australian Airlines.

3. Marketing Objectives

Being a public company listed on the ASX, Qantas’s main marketing objective is profit, both in the current and long-term periods. Its goal is to provide a satisfactory return to shareholders and to generate enough profit in reserve to fund growth and the gaining of new aircraft.

Qantas’s other marketing objectives include the following:

Increased

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