Qantas Airways Strategic Management †Free Samples to Students

Question: Discuss aboiut the Qantas Airways Strategic Management. Answer: Introduction The Qantas Airways are the largest airline in Australia. The airline began in business by transporting mails and passengers. Currently, the company has its operations almost 140 destinations globally and largest employer in Australia with around 37,000 employees(Pearson Merkert, 2014). Human resource management operates in four areas: corporate, business segment, development and learning and shared services. The market segment, the HR staff, collaborates with other business segments to ensure delivery of the services that will assist in the competitive advantage. At corporate level, the HRM handles staffs remunerations, benefits, development of the management and industrial relations of the company with its competitors. Under, the development and learning, the HRM comes up with training programs to assist the worker in delivering work efficiently. Finally, the human resource has duties in the firm and under shared service(Hampson, Junor, Gregson, 2012). The paper will discuss the i ndustry attractiveness, resources, capabilities, core competencies and competitive advantages of the airline in great details, and come up with appropriate recommendation and conclusion. Currently, the aviation sector has been very competitive in many countries globally. Concerning the Qantas, although it is the largest aircraft in the Australia with higher domestic passengers, it is threaten by other emerging airlines worldwide(Hussain, Al Nasser, Hussain, 2015). Michael Porter model will help understand more about the Qantas airliner structure. Qantas operates a virgin blue airline with low cost. However, looking at the cost leadership strategy, it cannot help in the current competitive condition. It is because each aviation airline focuses on the cost reduction, and services delivery and having an excellent product that out does the competitor. And so, Qantas can concentrate on the differentiation strategy to strengthen the company to deal with other the competitor. Threat of the new entrant For instance, the Tiger Airways plans to set up a new base in Victoria's Avalon airport. For that reason, Qantas should know to create hurdles to a new competitor from global aviation like using price tactic with the jet star airline as subsidiary(Bereznoy, 2015). Also, association strategy crucial in building trouble Qantass competitors to create brand worth by diversity; create superiority feeling of the Qantas customers. To save time, individuals use a plane as a means of transport between countries or inaccessible places. Due to the alternatives such as automobiles, vessels and trains, the airline should try to come up with diverse options and encourage travelling at a lower cost to influence customers. The two primary provider of the aviation industry is aircraft manufacturer and fuel supplier. Qantas contracts the aircraft manufacturers such as Boeing, Bombardier and Airbus(Piercy, 2009). Hence, the influence of the airliner engineering firm can be great to transact with the Qantas airline. Another major supplier of the airline is the fuel which comes at higher cost. Both locally and all over the world, bargaining influence of the consumers can be extraordinary. Nationally, Qantas has a jet star which has several routes at comparatively low cost. Tiger Airways Australia is alternative airline offering a reasonably little price carriage (Piercy, 2009). Similarly, the bargaining control of the buyers in the global airline industry can be substantial. Consequently, numerous airlines are operating at a lower cost, offering several options and different promotion. So, Qantas should have a quality product at the lower price in various channels such as websites and travel agency. Core competencies The core competencies consist of the production process, staff, customer relationship and abilities of the acquaintance which assist in the company to reach its goals and objectives (Pearson Merkert, 2014). Similarly, strategic planning shows the possible method that the organization can come about in future. Also, the company can go along the new core competencies to create benefits and success. A strategic design like information and social planning is the ways to define the senior management. For the case of the Qantas airline, the organizations core competencies are exceptional airline with outstanding services (Park, 2007). Qantas airline utilizes their core competencies to make the corporation have competitive advantages. The Qantas airline employs their essential capabilities with Qantas and jet star airline; which are reliable trademark. Possessions are intangible or physical assets that business implements into corporate plans (Cui Li, 2015). Although the market advances powers and limits, a firms reaction to the resources capability and distribution development becomes a basis of competitive advantage. Thus, the capacity is how the company uses its resources to have a competitive advantage. For instance, for the Qantas airline, it has a cheapest and groundbreaking approach to the price cutting (Park, 2007). Additionally, it has simple processes and concentrates on the particular market segment. The Qantas airline has resources such as human resources, financials assets, intellectual capital and physical properties. Michael Porter's model comprises of generic strategies consisting of cost leadership, differentiate and focus strategy(Daft Albers, 2013). The airline manages two brands; Qantas and jet star airlines. Moreover, the company has other subsidiaries such has Qantas link, jet connect; jet star Airways and Express Freighters Australia. Differentiation strategy Through the differentiation approaches, the enterprise can lift the worth of the products to the commuters. In Qantas aviation firm, the safety and protection are primary consideration. Qantas group operates over 330,000 flights per year(Rieple Helm, 2008). Therefore, the organization is confident about outstanding management on safety platforms which differentiate it from other competitors. In addition, the Qantas international flights such as A380, A330 and B747 have provision for in-flight entertainment. Also, the airline provides its members with over 130 lounges globally with necessary facilities. Qantas groups operate various trips which totals to 173 terminals in 42 nation states. Thus, with grouping with other partner airways, it can heighten the significance of the product and create good customer relationship(Dwyer Edwards, 2009). Jet star centers on dropping cost of flights so as to capture market share with the main brand in a different market segment (Pearson Merkert, 2014). However, currently, there are airlines which still offer low-cost. For the airline to deal with leading competitor, it has to form partnership strategy so as offer lower prices than other fare airlines. Air Asia and jet star provide unsurpassed reach in the Asia-pacific region, with a reduced cost and more routes than their competitor and therefore this partnership alliance makes it maximize and enjoy economies of scale (Frederick Patil, 2009). Building on the same point, jet star recognizes the fast sale at a lower price to create new promotion and attract more customers quickly(Frederick Patil, 2009). SWOT analysis Qantas has a power which helps to compete with other airline industry. Qantas has an excellent marketing skill and perfect brand building exercises. It is through promotions and marketing which makes the company a noticeable airline service provider. It is well known that the enterprise is a long term partners of the cricket team and sponsor of formula one in Australia(Frederick Patil, 2009). Qantas has impressive and excellent safety records which are attractive to the passenger. Safe assurance of the passengers enables them to travel using the airline both domestically and internationally places. Additionally, Australia government provides the company with numerous tax benefits which assist the air in acquiring necessary materials at rational price. Moreover, Qantas enjoys the monopoly in the domestic market because it is the only airline in the Australia territory. The airline operating and labor cost is very high which makes it difficult to cope (Cui Li, 2015). So, the airline has some large subsidiaries which make it challenging to deal with complex and cost related hitches. On a regular basis, the airline experiences union disputes. The airline feels the pressure of working out on the employee's demands; the workers raise their demand from anywhere. Another issue is that there is a mixed fleet which makes the pilot train properly to be able to operate them. Training makes the airline to incur an additional operating cost. For Qantas to create a new airline in Asia, need to establish a fundamental relation to other countries government and also its people (Pearson Merkert, 2014). Therefore, the airline needs to capitalize on its strategies in the Asian market to make success like in the domestic country. Due to technology contributing immensely to the globalization, the airline should utilize on the E-commerce operation to extend service which will help to get more customers and offer passengers with more options (Frederick Patil, 2009). The Qantas has a significant market share and well-established ground due to less interest by other airlines in the domestic territory. The rise in labor cost has adverse effects on both short and long term difficulties. As results of pressure from union, force company to raise the wages to its staff at less working hours. It further led to lengthy discussions which affect the airline operation. All airlines have problems with rising fuel costs(Cui Li, 2015). Therefore, there will be effects on the activity, and this causes the airlines to change its focal plans so as tackle changes. Furthermore, for the government to save the small airline from the well-established airline from competition, the government set a strict rule and increases the government regulations(Fu, Homsombat, Oum, 2011). Recommendation Alan Joyce has to help the employees understand the importance of going global and also create a feeling of mutual understanding among the employee; so that they give him 100% desired results. Qantas management has to implement the human resource planning, try to reduce it weakness and try to work with its workers. Qantas has to gain a potential market share because Australia is turning into a business hub and international tourist destination center for the oceanic. The market in Asia has a significant and number of countries such as India, Japan, China, Korea and Singapore(Park, 2007). Since their competitor is less reliable and more expensive, the airlines can provide the special conditions which will attract more customers from their rivals. The airline should know how to tackle the issues of the fuels and labor cost to achieve its goals. The organization should become aware of the regulations protecting small rivals so that the government does not intimidate the airline. Finally , the Allan Joyce can give bonus and benefits to motivate the employees to perform at their optimal level. Conclusions Undoubtedly, Qantas has approved that is customer-driven organization due to its innovative and unique approach supported by the Australia government. There is a strong bond between the airline and customer because of the services offered at business and economy class. Qantas recognitions come as result of the various sponsoring sports which is lucrative and profitable. Additionally, the Qantas employs the strategy of the following limited amount of destination. Hence, fewer destinations make it provide better services in the world so far. Although it could be difficult for the Allan Joyce to maintain and form a continuous relationship with unions, it will help to create a new beginning in the airline history. 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