Analysis Of Qantas & Collaborative Strategy

This report largely focuses on constructing a situational analysis of Qantas Airlines. An organisations situational analysis refers to an analysis that consists of ascertaining the key factors that will be used as a basis for development of marketing strategy. (Elliot 2014). Situational analysis consists of the environment analysis (both internal and external environment), competitor’s analysis and finally the swot analysis.

6.1.2 Strong brand and alliances. It has strong brand, ties and alliances; with its large market share American Airlines is known for its unique personality, which is recognized by its customers through good quality products and services received. The company has strong international ties and alliances, “American is one of the founding members of one world alliance, whose members and members elect serve more than 1,000 destinations” (American Airlines 10-K, page 5), such alliances increase flight frequencies in international markets for American Airlines. An alliance such as one world could

When a certain point is reached regarding a company’s success, a set of different opportunities arise and partnerships may unfold. However, with every possible strategy available, risks and benefits also come into play; without discarding any of them beforehand, every option is a strong candidate until a final decision is made. In this case study we will analyze the current business strategy pertaining

Capabilities are what a firm does, and represents the firm’s capacity to deploy resources that have been purposely integrated to achieve the desired end state. Capabilities become important when they are combined in unique combinations which create core competencies which have strategic value and can lead to competitive advantage. Capabilities needed for strategic fit are

This report largely focuses on constructing a situational analysis of Qantas Airlines. An organisations situational analysis refers to an analysis that consists of ascertaining the key factors that will be used as a basis for development of marketing strategy. (Elliot 2014). Situational analysis consists of the environment analysis (both internal and external environment), competitor’s analysis and finally the swot analysis.

When two or more organizations create a formal agreement to work together for a specific purpose, they form an alliance. Alliances offer organizations competitiveness in new business industries and shared responsibility in experience and cost.

efficiently than if either firm attempted to do so on its own. The role of strategic alliances in shaping the

To become one of the worlds’s leading airlines; Qantas expanded into the global market in numerous ways. Qantas became involved in global alliances for example: one world alliance – which is a global airline service bringing together 11 of the world’s biggest airlines. One world alliance helps to create loyal customers with frequent

United had one of the most prosperous times once the employee-ownership settlement was reached. This proved that employees having a stake in the business tend to work harder and increases the customer satisfaction ratings in turn. Although the economic downfall and 9/11 completely shattered the airline industry, the downfall of United’s ESOP was because management never enacted an ownership culture. United’s membership within the SkyTeam does afford benefits above those enjoyed by just the customers. SkyTeam has the capability for pilots and mechanics from multiple airlines to train and learn from within and upkeep of the fleets are shared. Instead of bearing the entire cost for these advantages, they are distributed amongst the complementary strategic alliance (Hitt, Ireland & Hoskissin, 2011).

The strategic alliance between Qantas and Emirates was a result of a careful analysis of the airline industry and its involving competitors.

Airline alliance can be defined as an agreement that consist of multiple independent airline to partner up or collaborate in various streamline costs activities and expanding market penetration and global reach (Hu, Caldentey, & Vulcano, 2013). Nowadays there is a lot of Airline Alliance in the globe that serve in many different regions throughout the world with the purpose to expands each existing airline in the alliance network by using the code-sharing, reciprocal agreements, frequent flyers programme and many other more (Pitfield, 2007). Currently there are three main Airline Alliance that consist of numerous number of airlines in each alliance. The Airline Alliance are Skyteam, Oneworld, and Sky Alliances. As stated before each one of the alliance have the same purpose which is code sharing, frequent flyers programme and many other more. The rise of the airline alliances has given significant positive impacts towards the industry, passengers and the airline itself. According to Pitfield (2007), the airline alliances give serious impact in term of passenger traffic, market shares and concentration.

To work more efficiently they should invest and make a centralized IT infrastructure for all of the systems. There were also too many cases where customer felt defrauded because of losing their baggage or being unable to enter the lounge. These examples show the failure of delivering services which were claimed by the alliance to be offered. That kind of inadequacy can cause a customer to breakdown and stop using the company’s services. Start Alliance is expected to bring seamless travel environment so it should unify their operations.

Since the 1990s the alliances in the airline industries is common and there are three major airline alliances which are present in the world are OneWorld, SkyTeam and Star Alliance. These alliances of airlines have covered almost two third of world air traffic industry and the major contribution in this is Star Alliance. The strategic alliances on the part of the airlines are done because of many advantages which not only organizations reap but also the other stakeholders which are involved in this type of alliances. This research paper is evaluation of why the strategic alliances are important and why the organizations go into the strategic alliances the case study of star alliance was taken as the reference and the circumstances

Competitive advantage is explained by Mahoney and Pandian (1992) as the function of industry analysis, organizational governance and the firm’s effects in the form of resource advantages and strategies. In order for a firm to be competitive it must adapt to the volatile business environment and through strategic management decisions establish a competitive advantage that will ultimately produce superior performance relative to its competitors (Akimova 2000).

In less than twenty years, the global industry has gone through tremendous change. Several airlines had gone out of business that had been on top of the industry for years. One of the remarkable changes had been airline alliances. The case focuses on the airline industry and how airlines are forming alliances and joint ventures. It then introduces the partner firms Air France KLM , and Delta . Air France KLM had over 25 collaborative agreements with other carriers and was a founding member of Skyteam, one of the leading airline groups. Air France KLM and Delta Airlines formed revenue