Qantas worlds leading long distance airways

Qantas worlds leading long outdo dispersewaysThe backup Case analysis Qantas AirwaysQantas is recognized as the worlds leading long distance airways which was established in Queensland in 1920, being the second oldest airlines of the world. Today, the airways provide rush work crossways a network of 173 destinations in 42 countries c everywhereing all over the world with approximately 35,000 employees. The Qantas group withal offers subsidiary businesses such(prenominal)(prenominal) as bud bilk airlines, Jetstar, and other businesses in specialist work Qantas Catering and Qantas Holidays (Qantas, 2010). To consider the changes and challenges that Qantas confronts in the market today, we should identify the range of products and services available by victimisation Marketing Mix concept. Then, we will analyze the opportunities that may be available over the next 5 to 10 year by using beat Analysis.Lake (n.d) indicated that the marketing amalgamate, or called as 4 Ps, is the conclave of marketing elements that are used to serve customers and comp whatsoever goal. The comp all offers are controlled by the following variables in marketing Product, expenditure, Place (Distribution) and Promotion. For Qantas Airways case, their marketing mix tole regulate conclude as followProductQantas offers a capacious range of products and services including premium brand, Qantas, and low cost brand, Jetstar. Qantas has divided in to worldwide and national race. In term of international shoots, Qantas offers first, business, premium sparing and economic class, which passengers receive antithetical services of seat, dining, and amenity collections as they paid. In case of Domestic flight, Qantas offers two move classes Business and Economy. Domestic inflight services include meals, snacks and audio-visual entertainment. Qantas Cityflyer provides passengers travelling amidst Brisbane, Adelaide, Canberra, Perth, Melbourne and Sydney added more flights an d seats than other airways with exceptional services such as free bare-assspapers on morning and complimentary wine and beer after 4pm calendar weekdays.Jetstar is a low cost airline in Asia-Pacific and Australia. In Australia, its operation is entirely owned by Qantas company. In Asia, the Qantas Group has extended the brand with their investments in Jetstar Asia (based in Singapore) and Jetstar Pacific (Vietnam). As a result, Jetstars operations have covered 50 destinations crosswise South eastern United States Asia and Asia Pacific.Moreover, Qantas also offer non-flying businesses, which are and Qantas holiday and Qantas catering, making perfect products and services for traveling customers and other airlines businesses.PriceThe prices of flights are different according to the distance of destinations and the class of seat customers selected. Especially, for Jetstar, its prices are competitive with other low-cost airlines that get under ones skin enormous profits to the co mpany. As its prices are versatile, customers stinker make a decision based on the services Airlines offered. In addition, for Qantas holiday, it also offers Price Promise curriculum that customers can get guaranteed low prices on transfers, simple machine hire, hotel or activities when they give-and-take on Qantas.com. Qantas will match price tramp and give 1000 extra points to customers who find another website which provide remediate rate than Qantas.Place or Distribution channelCustomers can book their flights via various different channels which are Qantas.com, Telephone sales, Qantas travel Centers, Qantas aerodrome locations and other travel agencies. Customers also can bang their flight via the website and their alert phone.PromotionThere are umpteen kinds of promotions to encourage sales such as discount air fare, buy one ticket get one free tickets, upgrading seat and loyalty program Frequent notice member.Frequent aeronaut program is very popular in airlines e xertion. Qantas offers threesome levels of memberships which are Silver, Gold and platinum, excluding Bronze entry level. Each membership has different privileges Qantas Club and business/First counters, additional kilograms for luggage allowance, point bonus, precession check in and so on. The higher membership level the subroutine privileges members can receive and earn awards.After we identified 4 Ps for Qantas, we will analyze the SWOT analysis to better understanding the organization. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and Weaknesses are internal factors that the company can control, while Opportunities and Threats are outdoor(a) possibilities which pick up more company efforts prevail opportunities, or prevent and debase threats.StrengthsStrong corporate imageQantas is the leader airways in Australia domestic and international and renowned as the second oldest airways. Moreover, the company is capital in strategical markets which are Asia-pacific and Western Europe.Frequent Flyer ProgramQantas Frequent Flyer program, the most popular and largest airways loyalty program in Southern part of the world, possess approximately 6.8 million customers with more than 400 partners. This is an important marketing strategy to retain customers and crate brand loyalty to new passengers. refined customer serviceQantas is devoted to offer passenger with a wide-range of outstanding services. It employs more than 700 international customer service managers and supervisors. Over 1,600 First and Business flight attendants were selected by their product knowledge and extensive service do it and trained to offer a premium service to passengers. Also, umteen an(prenominal) flight attendants are multi-lingual. They can speak a number of languages such as French, Italian, German, Korean, Japanese, Spanish, Mandarin, Cantonese, and so on. Furthermore, Qantas also has recognition for using inflight defibrillators and also on-b oard airplanes provide medico kits which include medication and medication.Corporate social responsibilityQantas are stressed more or less the concern of environment changing and are dedicated to manage its operations and development in an environmentally sustainable approach.They have launched the program Fly Carbon Neutral program to evoke people concerning on reducing carbon emissions that passengers can contribute small amount of money to offset their flight emissions.The Qantas group established the Qantas Environment and Fuel conservation group to responsible for environment thins. They have decreased aircraft noise or so airports, provided suggestion on acquisition assessment of new aircraft and new businesses, use environmentally practices and performance, and to name but few.In addition, the company also donated to support various not-for-profit programs or organizations such as Great Barrier take down Foundation, Flora and Fauna multinational, Clean up Australia Day , and so on.Versatile businesses unconnected from its main business, Flying Activity, Qantas also has invested in non-flying activities which are food catering, travel agency, airport and aircraft engineering that enable them to increase the companys profits and represent new opportunities to its present business.A lot of flight and routesThere are many routes covering worldwide provided by Qantas. Qantas group operate approximately 5300 flight a week including nearly 60 cities domestically and over 900 fights per week in 173 destinations in 42 countries. This help the Airways is recognized in many countries and expand its market share.Dual brand strategyQantas Group can cover a wide group of customers because it offers premium brand, Qantas, and low-cost brand, Jetstar. This creative thinking allowed Qantas to take advantage of target budget passenger and premium travelers to upgrade its profits and fulfill level of operation.WeaknessesEmployees relationshipQantas had conflicts wi th its engineers in reaching an sympathy on a wage dispute earlier in 2008. However, compromise was finally completed with a predictable annual wage embossed between4 to 5.8 %(Brigden, 2009). This is an important issue if it occurs again employees will have negative assert to the company that brings negative effects to overall operations.Dependence on hit marketIn spite of expanding to international region, Qantas still depends on the domestic market for its main revenues. This over-dependence on single market leaves the Airways vulnerable to any politics situation or economic depression and in Australia. volute costsAlthough in 2008 Qantas group has provided strategies to reduce the impact of increase provoke costs, it was forced to cut down other operations cost such as jobs and flight capacity to continue competitive position in the market.OpportunitiesOpen Skies AgreementThere were many efforts between Australia and other nations such as the US, New Zealand, and so on to ap prove an open skies agreement. As a result, it has created new opportunities to operate unrestricted capacity over any routing they choose and with as many flights as they desire in beyond markets.Asia-Pacific potential marketAccording to Datamonitor (2009), The Asia-pacific airlines industry had been growing at a healthy rate over 2005-2008, but showed a decline in 2009. This will increase once again in 2010Experts also predicted that the industrys hoi polloi is likely to increase to 794.3 million passengers by the end of 2013, showing a compound annual growth rate of8.6% for 2008-2013 period. Therefore, there will be enormous opportunities to increase company revenues and profits.Utilization new engineering science applied science is improving nowadays. The Airways can utilize it in many ways including increasing the service to customers and improving aircrafts design. In November 2009, Qantas reveal the project, which will begin in the mid-2010, to renovate domestic airport che ck-in times for passengers at Cityflyer ports across Australia. The membership cards including intelligent chip that can transform the selective information inside into personal boarding passes linked to the bag tags, and allow passengers to rustle their card on a reader and pass to an easy baggage drop. Non- commonplace flyers will also satisfy with major upgrades to their check-in by using hosted kiosks and rapid bag drop.Strategic wholeianceThe growth of strategic alliances is pass judgment to bring about several returns including an extended route network, more frequent flights and Frequent Flyer passengers and cost and efficiency benefits.ThreatsExcessive competition bald-faced airlines have become the main competitor of Qantas. Craigie and Bekiaris (2010) stated that Air Asia commenced flight between the Gold Coast, Perth, Melbourne, and Kuala Lumpur. In addition, Tony Fernandes, Air Asia CEO, said that Air Asia is exit to start flying into Sydney by midyear of 2010. Besi des, Air Asia X also provides cheap flight to London from Kuala Lumpur. This enhanced on the whole competition in Asia-pacific and Europe region. The competitors of Qantas are not limited only Air Asia, the other low-cost airlines such as Tiger Airlines and Virgin Blue also have offered the same routes as Qantas or Jetstar.Aviation Security issueAccording to the event of 11 September 2001, it decreased the demand for air travel because of the raise concerns about safety issue. Then, the cost of travel was raised as a result of the requirement of arriving earlier for departure, the increased rate of delays follow-on security breaches, and new protection surcharge (Coughlin, C.C. et al, 2002). Qantas also has flights service between Australia and the US, so the airways have been affected directly by the increasing in security cost.Shortage of pilots and staffPearson (2008) indicated that approximately 19,000 pilots will need to be trained yearly until 2026 to meet estimated demand as airways grow agreeing to International Air Transport Association (IATA). As a result, it is important to bill airways regulators will confront the challenge of training pilots better and faster which need more cost to absorb.Congestion and Airport capacity issueBecause the industry developed rapidly, a problem of airport capacity is possible, limiting the conglomeration number of airplanes flying to Australia as occurred in other parts of the world.All things considered, after studied both marketing mix and SWOT analysis, I would like to recommend the company to improve its operations as follows counselling on both domestic and international markets to diversify the risk of domestic economic, politics, social situations.Offer new promotions to passengers. For example, when it nearly reaches the date the flight interpreted place, company should discount air fare if those flights have remained too many seats to offset the cost of operations per flights. Consider about employees rel ationship, providing tight-laced training, wages or benefits and number of working hours.Use new technology and well-trained employees for improving airlines services.Find new alliances and retain the relationship of current alliances that can share benefits to the airlines.Continue company social responsibility and Saving Environments projects to insist good company image.Reference ListBrigden, Cathy. (2009). Journal of Industrial Relations. Unions and corporal bargaining in 2008, 51(3), 365-378.Coughlin, Cletus C. et. Al. (2002). revue. Aviation Security and Terrorism A Review of the Economic Issues, 84(5), 9-16.Craigie, J. Bekiaris, M. (2010). Money. Qantas gets cosy with AirAsia, 2(120), 16-16.Datamonitor. (2009). Airline industriousness Profile Asia-Pacific. Airline Industry Profile Asia-Pacific, 1-32.Lake, Laura. (n.d). Developing Your Marketing-4Ps of Marketing. Online Available from http//marketing.about.com/od/marketingplanandstrategy/a/marketingmix.htm Accessed 5 may 2010.Pearson, David. (2008). Wall Street Journal-Eastern Edition. Airlines Face Shortage of Pilots, 251(95), p. B11A.Qantas. (2010). Qantas Fact file. Online Available from http//www.qantas.com.au/infodetail/about/FactFiles.pdf Accessed 5 May 2010.