This essay aims to analyze the current strategic situation facing Qantas. First, main issues Qantas faces in it’s internal and external environments are identified. Then, the focus is on the key competitive considerations Qantas has to address in it’s domestic strategy. As a result, the analysis identifies what has Qantas handled well from a strategic point of view,
and what could it have done differently or better.
Table of Contents
- Introduction
- Qantas' Corporate Strategy
- External Environment Analysis: PESTEL Framework
- Internal Environment Analysis: I/O Model and Porter's Five Forces
- Competitive Landscape and Barriers to Entry
- Qantas' Business-Level Strategy
Objectives and Key Themes
This case study analyzes Qantas' corporate strategy within its domestic Australian market. The primary objective is to examine how Qantas maintains its significant market share and profitability in a competitive environment. The analysis considers both external and internal factors influencing the company's strategic decisions.
- Analysis of Qantas' market position and strategies for maintaining market share.
- Examination of the external factors (PESTEL analysis) impacting the domestic airline industry in Australia.
- Evaluation of the competitive landscape, including barriers to entry and competitive advantages.
- Assessment of Qantas' business-level strategy, including its cost leadership and differentiation approaches.
- Discussion of the impact of external factors on Qantas' strategic choices and their success.
Chapter Summaries
Introduction: This section introduces Qantas, its history, and its overarching strategic goals, primarily focused on delivering sustainable returns to shareholders while prioritizing safety. It highlights Qantas' dominant position in the domestic Australian market and its dual-brand strategy with Qantas and Jetstar, targeting different market segments. The introduction sets the stage for a deeper dive into the company's strategic approach.
Qantas' Corporate Strategy: This section delves into the detailed analysis of Qantas' corporate strategy. It begins by examining the external environment using a PESTEL framework, identifying significant political, economic, social, technological, environmental, and legal factors influencing the airline industry. The analysis then shifts to the internal environment, employing the I/O model and Porter's Five Forces to understand the competitive dynamics. This part highlights the significance of factors such as fuel costs, government regulations, and technological advancements on Qantas' operations and strategic decisions.
Competitive Landscape and Barriers to Entry: This section focuses on the competitive landscape of the Australian domestic airline industry. It examines the high barriers to entry, including substantial capital investment required for aircraft acquisition and securing terminal space. The oligopolistic nature of the market, with Qantas, Jetstar, and Virgin Australia as major players, is discussed. The analysis explores the competitive strategies employed by these airlines, focusing on price competition and the differentiation between full-service and low-cost carriers. The analysis shows how Qantas maintains its advantage by employing economies of scale and targeting a wider range of customers than its competitors.
Qantas' Business-Level Strategy: This section analyzes Qantas' business-level strategy, outlining how Qantas and Jetstar cater to different market segments. Qantas focuses on a differentiated strategy targeting business and upmarket travelers, while Jetstar adopts a focused cost leadership approach for price-sensitive customers. The integrated strategy combining both cost leadership and differentiation across the Qantas Group is examined, demonstrating how Qantas successfully balances these approaches to maintain its competitive edge in the Australian domestic market.
Keywords
Qantas, corporate strategy, airline industry, domestic market, market share, PESTEL analysis, Porter's Five Forces, competitive advantage, cost leadership, differentiation strategy, low-cost carriers, barriers to entry, economies of scale, Jetstar, Virgin Australia, strategic analysis, sustainable returns, safety.
Qantas Case Study: Frequently Asked Questions
What is the main focus of this case study?
This case study analyzes Qantas' corporate strategy within its domestic Australian market. The primary objective is to examine how Qantas maintains its significant market share and profitability in a competitive environment, considering both external and internal factors influencing its strategic decisions.
What are the key themes explored in the case study?
Key themes include analyzing Qantas' market position and strategies for maintaining market share; examining external factors (PESTEL analysis) impacting the Australian domestic airline industry; evaluating the competitive landscape, including barriers to entry and competitive advantages; assessing Qantas' business-level strategy (cost leadership and differentiation); and discussing the impact of external factors on Qantas' strategic choices and their success.
What analytical frameworks are used in the case study?
The case study employs several analytical frameworks, including the PESTEL framework for external environment analysis, the I/O model and Porter's Five Forces for internal environment analysis, and an examination of cost leadership and differentiation strategies at the business level.
What is the structure of the case study?
The case study is structured into sections covering an introduction to Qantas and its strategic goals; a detailed analysis of Qantas' corporate strategy using PESTEL and I/O models; an examination of the competitive landscape and barriers to entry in the Australian domestic airline market; and an analysis of Qantas' business-level strategy, including its dual-brand approach with Jetstar.
What are the key findings regarding Qantas' competitive advantage?
The case study highlights Qantas' competitive advantage through economies of scale, its dual-brand strategy (Qantas and Jetstar) targeting different market segments (full-service vs. low-cost), and its ability to balance cost leadership and differentiation to maintain its market share in a competitive environment with high barriers to entry.
What are the major external factors impacting Qantas' strategy?
External factors analyzed include political, economic, social, technological, environmental, and legal influences (PESTEL) impacting the airline industry. Specific factors such as fuel costs, government regulations, and technological advancements are highlighted as significant influences on Qantas' operations and strategic decisions.
How does Qantas maintain its market share?
Qantas maintains its market share through a combination of factors including economies of scale, a differentiated full-service brand (Qantas), a low-cost carrier brand (Jetstar), strategic responses to competitive pressures, and navigating external factors such as fuel costs and government regulations.
What are the key players in the Australian domestic airline market?
The major players in the Australian domestic airline market, as discussed in the case study, are Qantas, Jetstar (Qantas' subsidiary), and Virgin Australia.
What are the barriers to entry in the Australian domestic airline market?
High barriers to entry exist in the Australian domestic airline market, primarily due to the substantial capital investment required for aircraft acquisition and securing terminal space. The oligopolistic nature of the market further contributes to these barriers.
What keywords best describe the case study's content?
Keywords include: Qantas, corporate strategy, airline industry, domestic market, market share, PESTEL analysis, Porter's Five Forces, competitive advantage, cost leadership, differentiation strategy, low-cost carriers, barriers to entry, economies of scale, Jetstar, Virgin Australia, strategic analysis, sustainable returns, safety.
- Citation du texte
- Giulia Lucarelli (Auteur), 2014, The corporate strategy of Qantas Airways. A case study, Munich, GRIN Verlag, https://www.grin.com/document/307979
