Qantas Strat Mgt
1.0 Introduction
The Australian domestic airlines industry operations usually consist of transportation of freight and passengers domestically (IBISWORLD, 2010). The industry has been experiencing slightly negative annual revenue growth of negative 0.4% for the past five years (IBISWorld, 2010). The domestic airlines industry consist of two major players such as Qantas Airways and Virgin Blue, and three minor players such as Regional Express, Skywest and Tiger Airways (IBISWorld, 2010).
2.0 External Analysis
External analysis is used to analyze the external environment of an organization to identify any threats and opportunities, which is part of SWOT (Hill, Jones Galvin & Haidar, 2007). This part of the essay will be looking at what challenges Qantas faces in the 21st century.
2.1 Macro Environmental Analysis
Macro environmental analysis is used to evaluate what variables around Qantas have potential affect on Qantas’s strategies and once identified how Qantas can develop strategies to gain comparative advantage
2.1.1 Political Forces
Political forces refer to any changes in government legislation that may effect the organization.
2.1.1.1 Security Measures
In light of the 9/11 attack on the World Trade Centre in the US, the US government issued “The Aviation and Transportation Security Act” which included new safety measures which could make traveling harder (Datamonitor, 2007). With roughly 9% of Qantas’s revenue coming from their flights to US/Canada it may affect the company’s future revenue (Datamonitor, 2007). The Australian government have introduce tighter control due to the 9/11 attack, which has “brought about dramatic drop in passenger volume” and thus one of the many challenges Qantas faces (Quamrul, 2007).
2.1.1.2 Deregulation
According to the Australian Government (2010) the “deregulation of the domestic aviation in 1990 meant the end of the Two Airline Policy”, thus allowing and reducing entry barriers for other airline carriers to enter
The Australian domestic airlines industry operations usually consist of transportation of freight and passengers domestically (IBISWORLD, 2010). The industry has been experiencing slightly negative annual revenue growth of negative 0.4% for the past five years (IBISWorld, 2010). The domestic airlines industry consist of two major players such as Qantas Airways and Virgin Blue, and three minor players such as Regional Express, Skywest and Tiger Airways (IBISWorld, 2010).
2.0 External Analysis
External analysis is used to analyze the external environment of an organization to identify any threats and opportunities, which is part of SWOT (Hill, Jones Galvin & Haidar, 2007). This part of the essay will be looking at what challenges Qantas faces in the 21st century.
2.1 Macro Environmental Analysis
Macro environmental analysis is used to evaluate what variables around Qantas have potential affect on Qantas’s strategies and once identified how Qantas can develop strategies to gain comparative advantage
2.1.1 Political Forces
Political forces refer to any changes in government legislation that may effect the organization.
2.1.1.1 Security Measures
In light of the 9/11 attack on the World Trade Centre in the US, the US government issued “The Aviation and Transportation Security Act” which included new safety measures which could make traveling harder (Datamonitor, 2007). With roughly 9% of Qantas’s revenue coming from their flights to US/Canada it may affect the company’s future revenue (Datamonitor, 2007). The Australian government have introduce tighter control due to the 9/11 attack, which has “brought about dramatic drop in passenger volume” and thus one of the many challenges Qantas faces (Quamrul, 2007).
2.1.1.2 Deregulation
According to the Australian Government (2010) the “deregulation of the domestic aviation in 1990 meant the end of the Two Airline Policy”, thus allowing and reducing entry barriers for other airline carriers to enter