Vision Statement

Mission statement

The Qantas Airlines main business is to manage the transportation of customers with the use of their two major complementary airlines namely, Qantas and Jet Star. In this context, the company aims to operate within a subsidiary business consisting of other airlines and business that are a specialised marker in terms of Q catering services.

Vision statement

The long terms of Vision statement of Qantas Australia are to operate the best premium services in the global scenario.

A summary of its historical performance

The strategic analysis of Qantas Australia finds the performance result of the company based on past and present along with the future intentions for the aviation industry. The performance analysis of the past shows that the company at present offers their services over major parts of the world that has access to various long-distance aircrafts service with a capacity of 450 passengers. 

In the year 2018, the company’s on-time performance shows that they operated across all routes by collaborating with all of their airlines that represented an average 73.5% on their arrivals and 75.3% on their departures.  Equivalent figures have been observed for the year 2017 with 79.0% and 1.9% for the rate of cancellation. However, Qantas has achieved the highest number of on-time arrivals in their major local airline with 75.1 % of arrival along with the lowest number of arrivals (Qantas, 2018).

SWOT Analysis

Strengths · Strong dominating presence in the Australian economy ·  Flexible profit with the strong support of growth · Dual branding method allowing them to expand their market segmentation (Qantas, 2018).	Weakness · Reduced cost base may engage layoffs and exploit industrial connections · Fall down of the non-core asset resources.
Threats · Volatility in foreign exchange activities · Legal policies may create a problem in business expansion’ · Growing competition coming from Asian companies (Vishnevskiy, Karasev & Meissner 2015).	Opportunities · Growing opportunities in terms of the loyalty program and digital marketing platform · Leveraging big data for increasing operational effectiveness (Manhas & Tukamushaba, 2015).

PEST analysis

Political	· The government has a significant positive impact on the aviation industry with the increase of 65% market share (Noh, Benito & Alonso, 2016).
Economical	· Owing to financial crises Qantas had to face challenges in flight operations, as a result, they had to go through an economic downturn.
Social	· Growing social of travelling is helping them to increase their performance provided with exclusive service (Wahyuni-Td & Fernando, 2016).
Technological	· A significant development in technology such as booking, flight scheduling related to airline service (Qantas, 2018)..

A description of its key strategies and initiatives

The major strategy and initiatives taken by Qantas are based on sustainability and environmental awareness (Burghouwt, 2016). In this regards, they have also taken efforts to address local, national as well as global environmental flagship program to increase fuel efficiency and bring changes in the in-flight programs.

The implementation challenges ahead

• The rise in the digital media and big data analytical may hinder the business of the airline industry (Francis, Humphreys & Aicken, 2017). However, to tackle this issue the company needs to reconstruct the digital environment.
• High price in fuel and competitive domestic market along with the global growth of capacity may affect the profit margin of the Company (Tubigi & Alshawi, 2015). The company can take a step to rebuild a marketing strategy to balance the challenge of growing fuel price.

Measures of strategic success showing how the strategy will be evaluated

Qantas may take steps to reconstruct the digital operations to enhance their big and analytical operations. In case of increasing fuel surge, Qantas can lower their international air cost including the fuel surcharge to balance the increasing challenge of high fuel cost, and growing competition (Gregson et al., 2015).

Presentation Transcript

A welcome to your employees and an introduction of who you are

Hi, good morning all. I hope you are well aware of my role that I am the CEO of the organisation. However, I am here to discuss with you all of you about the strategic changes of the organisation that it has gone through in this period. 

Strategic Analysis

Business strategy

From the current working operations of the Qantas airline, it has been found that the company has been increasingly expanding their services across all the major countries of the world. In this context, the company had been successfully offering service with high-quality services including premium service for their customers across a variety of network (Baker, Merkert & Kamruzzaman, 2015). The company in case of marketing strategy have also managed to upgrade their in-house entertainment to suit the high class and ha also enhanced the terminal service offers for their customers.

Corporate strategy

Qantas group of companies have managed to maintain a strong position in the Australian domestic market in the year 2016/17.  In this context, the company has successfully maintained a dual branding strategy to offer premium leisure service across all the business marketing segments whereas Jet star offered the lowest fares to almost millions of customers within the price sensitive market.

Qantas has maintained a clear leading framework within the corporate travel marker that continues to expand in terms of small business and within the premium leisure market (Graham, 2016) From the performance report it has been found that the is seeking out to make free as well as faster on flight Wi-Fi on their domestics flight services.

International strategies

In case of international strategy, Qantas has developed resilient and sustainable international tactics by bringing transformation within the business as well as by leveraging their opportunities by collaboration with their major partners such as Emirates, China Eastern along with American Airlines. During the year 2017, the company has prepared the first Boeing Dreamliner to create a replacement for the older Boeing 747 aircraft. These Dreamliner has helped to enhance their international strategy by producing an unprecedented range of flying, significant efficiency in cost and un-comparable customer experience while offering them a long-term sustainable advantage (Sheth, 2017).

This technological improvement within Qantas has helped in increasing the efficiency if responsive cabin lighting, using 20% of less fuel than other airways of similar size. Apart from these, these allow the aircraft to emit reduced carbon dioxide production along with limited consumption of fuel (Leong, Hew, Lee & Ooi, 2015). The system is equipped with sensory turbulence and wing control interfaced that allows the customer with increased comfortable flight journey. 

Growth strategy

Qantas growth strategy continues to offer a diverse and stable revenue stream for their group of companies thereby leveraging the loyalty to the Qantas brand. In this context, the core frequent flyer program helped them to grow their membership by nearly 4% to 11.8million with an addition of 22 new partnership members along with a reformed collaboration with the supermarket Woolworth in Australia (Qantas, 2018). They have maintained a network partnership of almost 270 partners across the Australian boundary that inclusive of 50 airlines in the international network.

Strengths

At the same time, the organisation is consistently taking advantage of the business options in different segments to expand their revenue through the range of ventures (Sandada & Matibiri, 2016). They have done it through the Qantas business rewards program and the red planet in data public to invest in their big data service.

Apart from these, Qantas has a current focus on building a strong partnership in the Asian region to ensure well-positioned capitalisation and growth. It has been found that over 50% of the Qantas group global capability is presently focused on Asia with the provision of daily service into major business areas such as Singapore, Shanghai, Beijing and Tokyo. In this context, the company has currently launched Sydney- Beijing and Melbourne- Narita for increasing the capacity in the Asian region. Therefore, focusing on the greater part of China region, the company has three major long-term strategies for taking advantage of growth.

• Serving the major areas of Hong Kong, Shanghai and Beijing with a population of around 53million in between these areas,
• Additional strengthening of the merging with eastern China and southern China that offered the group with most 22 destinations in China.
• They are targeting funnel inbound travelling visitors those who avail 2-3 domestic flights while visiting Australia.

Marketing strategy

Qantas group of the company maintains a customer-oriented strategy for enhancing their marketing criteria’s, they have circulated the Qantas loyalty program while offering products and services to their premium customers. The company has made high investments in terms of date and digital operations for improving personalised communication and increasing additional opportunities for revenue (Dawson, Mayger, Thomas & Thompson, 2015).

Apart from these, for increasing marketing services the company has implemented major up gradation to their Qantas application that helps the customers to maintain track of the Qantas frequent flights attached with a professional news feed and offers on the flight.

Management strategy

In the case of management strategy, the Qantas group of companies have managed to reach the level of record. Based on the annual survey report it has been found that almost 80% of their working employees are in support of the objectives of the organisation and 70% of them are influenced to give their efficient effort on behalf of the organisational growth.   

Their management has built an efficient culture of leadership by building the additional capacity of pilots, cabin crew as well as engineers. In this context, almost 10,000 Qantas and Jet star customer-facing team members have taken part in a program that intended to create a sensible connection with the customers (Qantas, 2018).

For doing so, the staffs have been trained in New Zealand, Australia, and Japan. Their management strategy focus is on strengthening the corporate culture with the program that is dedicated to rolling out 8000 employees. In this context, almost 1000 leaders and supervisors have received training for supporting them to grow in different areas of active investment for involving them in the role of leadership.

Weaknesses

Conclusion

It can be seen from the above study that Qantas has been operating as one of leading airline in Australian that have managed to develop their brands through sustainable marketing and corporate strategy over their superior service that are being produced. At the same time, they have also maintained the dual branding strategy with the development of business partnership by making their personae within the low budget carrier planning with the Jet Star.

However, it has been seen that within the past few years the company had to face a slowdown in operating margins due to international factors affecting their business managing. Despite the growing challenging resulting from political as well as economic factors that the company has consistently focused on reducing their operational cost by cutting down their features and offering low cost to the customers. From the overall performance scenario, it is evident that they are all set to rule the Australian market in the coming days to provide a flexible system of management with the implementation of required changes that goes in line with the decision making and changing environment of the market. 

Reference list

Baker, D., Merkert, R., & Kamruzzaman, M. (2015). Regional aviation and economic growth: cointegration and causality analysis in Australia. Journal of Transport Geography, 43, 140-150.

Burghouwt, G. (2016). Airline network development in Europe and its implications for airport planning. Abingdon: Routledge.

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Dawson, D., Mayger, K., Thomas, M. J., & Thompson, K. (2015). Fatigue risk management by volunteer fire-fighters: Use of informal strategies to augment formal policy. Accident Analysis & Prevention, 84, 92-98.

Francis, G., Humphreys, I., & Aicken, M. (2017). Where next for low-cost airlines? A spatial and temporal comparative study. In Low-Cost Carriers (pp. 113-124). Routledge.

Graham, A. (2016). Airport strategies to gain competitive advantage. In Airport Competition (pp. 109-122). Routledge.

Gregson, S., Hampson, I., Junor, A., Fraser, D., Quinlan, M., & Williamson, A. (2015). Supply chains, maintenance and safety in the Australian airline industry. Journal of Industrial Relations, 57(4), 604-623.

Leong, L. Y., Hew, T. S., Lee, V. H., & Ooi, K. B. (2015). An SEM–artificial-neural-network analysis of the relationships between SERVPERF, customer satisfaction and loyalty among low-cost and full-service airline. Expert Systems with Applications, 42(19), 6620-6634.

Manhas, P. S., & Tukamushaba, E. K. (2015). Understanding service experience and its impact on brand image in hospitality sector. International Journal of Hospitality Management, 45, 77-87.

Noh, H. M., Benito, A., & Alonso, G. (2016). Study of the current incentive rules and mechanisms to promote biofuel use in the EU and their possible application to the civil aviation sector. Transportation Research Part D: Transport and Environment, 46, 298-316.

Qantas (2018), HOME: Australia, Retrieved on 23 August 2018. Retrieved from https://www.qantas.com/au/en.html

Sheth, J. (2017). Revitalizing relationship marketing. Journal of Services Marketing, 31(1), 6-10.

Tubigi, M., & Alshawi, S. (2015). The impact of knowledge management processes on organisational performance: The case of the airline industry. Journal of Enterprise Information Management, 28(2), 167-185.

Vishnevskiy, K., Karasev, O., & Meissner, D. (2015). Integrated roadmaps and corporate foresight as tools of innovation management: the case of Russian companies. Technological Forecasting and Social Change, 90, 433-443.

Wahyuni-Td, I. S., & Fernando, Y. (2016). Growing pains the low cost carrier sector in Indonesia: Internal service quality using a critical incident technique. Safety science, 87, 214-223.