Qantas Airways Limited is an Australian iconic airline group engaged in the operation of international and domestic air transportation services and the provision of freight services (Market Line, 2014). The airline also associates its services with the Jetstar brand, with QantasLink, Jetstar Asia and Jetstar Pacific grouped under the same business (Passport 2013). With a 17.7% market share of international passengers in Australia (Business Monitor, 2011), the company aims to upsurge its global market position through a demanding and reconstructive approach. The company has already accomplished a notable degree of achievement locally and internationally with its significant competitive positioning and strong alliance with Emirates and previously British Airways. Though with increasing global forces bestowing as challenges for the business, Qantas has to adapt to the macro-environmental factors appropriately in turn with their internal marketing mix. Clarke (2006) stresses that in a worldwide economical industry, competition is fierce and costs need to be through international eyes, so an arduous analysis of the strategic pillars is needed for the sustainability and improvement of Qantas in the international market.
1.1 Strategic Alliances
For the improvement of global marketing performance for a company such as Qantas, a global outlook on the affiliation between market condition, marketing policies and programs and consumer response needs to be developed systematically (Davidson, 1983). The application of internal factors relating to the strategic approach Qantas has applied has developed in an enhancement of its global branding in the international aviation market. Qantas tactically formed a strategic 10-year alliance with Emirates on 31 March 2013 (Passport 2013), to further strengthen its global service across various regions around the world as well as to improve its system coverage. With its international segment continuing to be loss making (Passport 2013), retaining the international division of market share with Emirates includes a permanent shift in their network of destinations that includes Europe, Middle East and Africa; which is evidently a geographic advantage for the airline. The relationship deems more significant than a fixed agreement, including integrated network collaboration with coordinated pricing, sales as well as a benefit-sharing model (Market line 2013). The partnership also coincides with their loyalty program, standardising the benefits for customers across both airlines in turn expanding their business partners on a global level.
The generated link between market share and competitors is relatively important, as Hazledine (2011) stresses the more competitors there are, the smaller the market share. By forging an alliance with an attractive competitor like Emirates, the company has gained a stronger network in Europe, Middle East and Africa, while gaining a competitive advantage in the international aviation market. However, since the formation of this new strategic alliance, the termination with the previous partnership with British Airways has led to a change in routes and the comprise of its position with Oneworld- an alliance of the world’s leading airlines working as one (Oneworld, 2014) There has been an increase of rivalry by a number of competing airlines targeting Qantas’ lucrative international and domestic routes. Hazledine (2011), discusses that the Australian market is ‘predominately duopolistic’, with about three quarters of the routes are shared between Virgin and the remaining are Qantas’ monopolies. This implication leads to its dominance in the Australasian market being targeted by other leading aviation companies. The bulk of Qantas’ sales are from Australasia (Passport, 2013), though has been increasing interests from competing airlines seeking to capture their share hold of the region. However, with...
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