Qantas started in 1920 in the Queensland outback with government support flying with fragile biplanes carry one or two passengers to progressively growing enough to become its own private company, but must maintain atleast 51% of its shares inland. The company has now evolved to A380s carrying 450 people throughout the day. Qantas’s strategy is keeping safety its first priority, then Qantas plans to build onto their strong domestic business by increasing its profitability and increasing its market share of 65% and to build its profitability it plans to partner with more related companies to access more markets and opportunities for sales.
Qantas wants to lower its overall costs and to achieve this it has continued to outsource more things overseas. Such as Maintenance, IT and over 35,000 employees. More than 70% of
Qantas’s assets are targeted for a Global Market, which has enabled them to access new markets they previously couldn’t. Globalisation is Qantas’s key to survival and competitive to other airline companies, as it can partner with other companies and work together to lower costs and share assets. Globalisation is also needed for Qantas to maintain it to be profitable for stockholders to hold shares in their name. The issue for Qantas being a global operation, due to them being restricted to selling more than 49% of their shares, may be a issue when they are competing against companies that are flown into and out of australia with government assistance, unlike Qantas which is now privately owned.
Qantas is very fast at adopting the latest technology when it comes to Pilots, Entertainment,
Engine Noise, Fuel Efficiency and More seats available per flight. Being quick to adopt new technology can influence Qantas in many Positive and Negative ways. The positive influences it has on the business includes:
● Superior level of service to the customer, that may be unmatched by other airlines that haven’t taken in new technology.
● A continued effort to provide a more enjoyable experience for the customer boarding the plane. It maintains the competitive advantage as it may have features other airlines can fabricate.
● Less labour needed to operate the business, which will allow them to lower costs overall. Negative influences introducing newer technology early includes:
● Costs of upgrading existing systems may outweigh the savings they achieve from it.
● Require more skilled staff that can operate new technologies with higher wages.
● With the adoption of new technology requires staff to be regularly trained and updated on how they are operated which will increase training costs. Qantas spends up to $300 million a year on training their staff.
Qantas is influenced in a big way by Quality Expectations, if its not expected to be a quality service by reputations it will cause a big impact on sales and passengers choosing your airline over another. As customer loyalty is a importance to Qantas it continues to make transactions and booking flights simpler by creating ‘Next Generation Check in’ which will make it a faster and easier to get through airport terminals by eliminating airport queuing.
Having a better experience can increase customer loyalty and the chance that they will recommend your company to friends or family. Whilst poor operations that are slow and time consuming may cause people to turn away from Qantas and choose a different airline such as
Cost Based Competition
Qantas faces big impacts on their market share and profitability from competitor growth in all different markets. This influences Qantas to focus on cost minimisation on their services, which caused them to create a budget airline ‘JetStar’ which is their low cost services which only provides a basic service which lacks in inflight entertainment and provided food and drinks. They can be