Situational Analysis Of Qantas Airlines ' Situational Analysis

Qantas’ situational analysis (SWOT) is the first step in the marketing process whereby the strengths, weaknesses, opportunities and threats of the airline are identified. The airline’s strengths include: Being part of the Oneworld alliance, having a high safety record, being a globally recognised airline through the use of branding and the flying kangaroo logo, purchasing the latest aircraft thus updating technology and staying level with international competitors and the final strong success of Qantas has come by operating out of some of the world’s major air travel hubs such as Los Angeles International Airport, London’s Heathrow Airport, Singapore’s Changi Airport and Sydney Kingsford Smith International providing an excellent range of customers.

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.

The biggest challenge facing any new entrants and Virgin Blue is competing with the brand identification of Qantas and the following that they have from the Australian public. When Virgin Blue first entered the market they were also competing with Ansett for customers and since the collapse of Ansett, Virgin Blue and Qantas had to compete for their customers. Qantas has established a frequent flyer program to keep

The key to ensuring good quality service is meeting or exceeding what the customers expect from services. Judgements of high and low quality depend on how customers the actual service performance in the context of what they expected. Service quality, as perceived by the customers, can be defined as the extent of discrepancy but customers’ expectations or desires and their

When analyzing the internal analysis for Qantas Airlines in Australia we come to know that profit margins here are also very tight. 0.5% growth is expected in the upcoming years. It is predicted that by 2017 the total revenues will reach to 14.9 billion Australian Dollars. The steep margins are due to increased competition. Qantas airlines hold 65% of the total market share which is high as compared to other countries. Nevertheless every other competitor is using world class crew, services, uniform, and food to attract more customers. Even though there is high competition, Qantas has competitive edge by having a strong brand, better slots at airports and well trained staff. (Bloomberg, 2011) Virgin Australia and Tiger Airlines are the two major competitors in Australia which are competing Qantas. Qantas has launched Jetstar as its sub brand to compete the low cost airlines. Competitors also have well trained staff and nice quality planes and profession crew. Virgin Airlines has an

This assignment consists of analyzing the business concepts of Qantas Airways Ltd. The assessment begins with defining the Porter’s Five Force Analysis in respect to Qantas Airways. The assessment also includes SWOT Analysis of Qantas Airways and its competitive approach towards its competitor.

Q3: What makes the Australian Airline Industry different? Why do Qantas and Virgin Blue earn high profits when many airlines worldwide operate at a loss?

Service quality is defined as the procedure where an organization meets the customers/clients expectations and challenges. This step is taken by the company to improve the quality and needs of customers.

Through s Porters Five Forces analysis (Figure 1 – Appendices) the greatest threat for Qantas is the rivalry. Qantas is taking advantage of this opportunity as through the alliance it creates greater certainty for the shareholders while also being able to increase its numbers in international routes to 33 one-stop destinations in Europe in addition to 31 one-stop destinations in the Middle East and North Africa (Ryan, 2012). Additionally, as competition was putting pressure on the market while Qantas was restricted by financial reasons, this alliance came as a great opportunity. Furthermore, from 31st of March Qantas frequent flier point users were able to book Emirates flights while the customers’ high status with Qantas was recognized at Emirates as well. Lastly, on European, Asian and African destinations Qantas mirrored Emirates baggage policies (from 20kg to 30kg) (Panaus Travel, 2013).

In this long operation period, Qantas constantly developed and improved so as to achieved some achievement and earn good reputation. For example, in 2012, it got different awards about entertainment facilities, the best first class and business class within 10. In addition, it was the best safety airline in the world from Airline Ratings in 2013. These good growth can lead Qantas come into a good situation and bring more passengers.

Considering service sector it is highly depends on the customers. Customer loyalty is influenced by customer-employee relationship. It is important for organizations to know how customers perceive the quality of services and how these perceptions translate into customer satisfaction and behavioral intentions. Moreover, for an effective marketing strategy and organizational development, organizations want to understand the ways of customer satisfaction. Service quality is the difference among consumer expectations and their perceptions of the service that they received.

The profitability of a company is essential and the market share feeds into this. Market share is the percentage that a company receives out of total purchases from consumers

In this case analysis, the four airline categories are discussed with depth based on their segmentation, targeting, and positioning. But more attention is placed on the Asian airline companies, since they are geographically serving a common consumer market. These marketing aspects are chosen due to its simplicity and since marketing strategy is the first step to introducing and developing a prospective product into a particular market. Moreover, market trends relating to the airlines involved may largely be due to how they were first presented to the consumer. Thus, segmentation, targeting and positioning being a marketing strategy of the company must be identified, criticized, and analysed thoroughly to

Service quality represents a fundamental aspect of delivery, which strongly influences consumer satisfaction and, as a result, loyalty. In today’s global market a customer’s service expectation has to be met and exceeded eventually in order to retain customers as well as achieve success. Perceived quality of a product or a service is becoming one of the major competitive factors in the business world and has led to the innovation of the ‘Quality Era’ (Peeler, 1996). In simple words, the comparison of customer expectations with service performance is service quality. On the other hand, customer satisfaction is defined as a pleasurable fulfilment response toward a good, service, benefit, or reward (Oliver, 1997). Both of these

The air service is used to be a luxury choice however, the air service had become a necessity now. Thus, the demand for air travel service have become relatively inelastic. In Southeast Asia, the aviation players carry on to post several of the highest growth rates in global aviation industry which is mainly driven by expansion in the Southeast Asia low-cost sector (CAPA, 2013). This shows that the market have high demand in air service. Hence, this forms an oligopoly market as a few of major airlines compete to have bigger share of market.