Qantas Report
1. Executive Summary
Qantas is one of the most recognised and longest running Australian companies. It is the world’s second oldest airline, and has a successful history to uphold (Qantas Web Site, 2008).
Identification of target markets is imperative to Qantas’s success. Mortished (2003) explains that Qantas uses Behavioural segmentation to select its target market. This allows for the market to be divided and products and advertising to be specifically aimed at the most responsive customers. Qantas divides its target market into two main groups; Business and leisure
Qantas has three major problems. 1.) Fuel efficiency, 2.) Lack of communication between employers and employees, 3.) Competition in the corporate customer market (Ferguson 2003).
To overcome these issues, Qantas must modify aircraft sizes and engines to become more fuel efficient and reduce CO2 emissions over coming years. During the next two years, Qantas should plan to reduce industrial conflict by reorganizing the communication system and its organizational structure, making it more flexible and adaptive, thus empowering employees with project management responsibilities. Grievance procedures must be improved with a formal process to resolve work conflicts. Qantas must maintain and increase its corporate customer market share in order to remain profitable and successful.
Over the next 5 years Qantas aims to hedge fuel prices and use more efficient aircraft to limit further fuel costs improve employee/employer relationships by reducing the number of employment relations disputes and retain corporate market share by enhancing facilities and lounges to appeal to corporate travellers.
2. Table of Contents
1. Executive Summary 1
2. Table of Contents 2
4. Who is the Customer/Market and how are we giving value 4
4. 1 Segmenting Market Variables: 4
5. Analysis of the global marketplace 6
5. 1 Financial Influences 6
5.2 Social and Cultural Influences. 7
5.3 Legal Influences 7
5.4 Political
Qantas is one of the most recognised and longest running Australian companies. It is the world’s second oldest airline, and has a successful history to uphold (Qantas Web Site, 2008).
Identification of target markets is imperative to Qantas’s success. Mortished (2003) explains that Qantas uses Behavioural segmentation to select its target market. This allows for the market to be divided and products and advertising to be specifically aimed at the most responsive customers. Qantas divides its target market into two main groups; Business and leisure
Qantas has three major problems. 1.) Fuel efficiency, 2.) Lack of communication between employers and employees, 3.) Competition in the corporate customer market (Ferguson 2003).
To overcome these issues, Qantas must modify aircraft sizes and engines to become more fuel efficient and reduce CO2 emissions over coming years. During the next two years, Qantas should plan to reduce industrial conflict by reorganizing the communication system and its organizational structure, making it more flexible and adaptive, thus empowering employees with project management responsibilities. Grievance procedures must be improved with a formal process to resolve work conflicts. Qantas must maintain and increase its corporate customer market share in order to remain profitable and successful.
Over the next 5 years Qantas aims to hedge fuel prices and use more efficient aircraft to limit further fuel costs improve employee/employer relationships by reducing the number of employment relations disputes and retain corporate market share by enhancing facilities and lounges to appeal to corporate travellers.
2. Table of Contents
1. Executive Summary 1
2. Table of Contents 2
4. Who is the Customer/Market and how are we giving value 4
4. 1 Segmenting Market Variables: 4
5. Analysis of the global marketplace 6
5. 1 Financial Influences 6
5.2 Social and Cultural Influences. 7
5.3 Legal Influences 7
5.4 Political
References: Abacus, Elizabeth. "Dixon Plots a Risky Course At Qantas." Sydney Morning Herald 22 Oct. 2004. 15 Feb. 2008 <www.smh.com.au>. Annual Report Annual Report. Qantas. Qantas Airways Limited, 2003. Annual Report Annual Report. Virgin Blue. 2007. "Australian Workers Union." 16 Feb Bartholomesz, Stephen. "Jetstar Plots Course to Undershoot Virgin and Block Out Third Party." 26 Feb. 2004. 17 Feb. 2008. Berry, Sean Boyle, Jane. "Internet Sales Up, Up and Away." Australian Financial Review 10 July 2002. 17 Feb. 2008 <www.afr.com.au>. Boyle, Jane Coorey, Phillip. "Qantas Joins War on Labor Over Plan to Abolish AWA 'A." Sydney Morning Herald 16 May 2007. 15 Feb. 2008 <www.smh.com.au>. Creedy, Steve Creedy, Steve. "Virgin Circular for Qantas Loyalty." The Australian 20 May 2005. 17 Feb. 2008 <www.theaustralian.news.com.au>. Dixon, Geoff Doganis, Rigas. Flying Off Course - the Economics of International Airlines. 1991. Dorman, Clive Ferguson, Adele. "Wounded Kangaroo." Business Review Weekly 10 July 2003. 10 Feb. 2008 <www.brw.com.au>. "Flight Attendants Association of Australia." 17 Feb Hutton, Jeffery. Terminal Attraction. 2007. John, Danny Kennedy, Graeme. "Points Schemes Play a Big Role in Airlines ' Market Strategy." National Business Review 2001. 15 Feb. 2008 <www.nbr.co.nz>. King, Brian, and Geoff Hyde Milne, Chris. "Qantas Plans Another Asian Campaign." Business Review Weekly 1 Aug. 2002. 20 Feb. 2008 <www.brw.com.au>. Mortished, Carl "Our Company." Qantas: the Spirit of Australia. Qantas Airways Limited. 6 Feb. 2008 <www.qantas.com.au>. Priest, Marcus Qantas. Financial Report. Qantas Airways Limited. Qantas, 2007. Robertson, Rodger Rochfort, Scott. "Bring on the New IR." Sydney Morning Herald 14 Oct. 2005. 15 Feb. 2008 <www.smh.com.au>. Rochfort, Scott Rochfort, Scott. "Qantas and Staff Reach a Peace Deal." The Age 3 Nov. 2004. 15 Feb. 2008 <www.theage.com.au>. Rochfort, Scott Rochfort, Scott. "Qantas Tells Staff: Scrifice or Lose Jobs." Sydney Morning Herald 10 Mar. 2006. 17 Feb. 2008 <www.smh.com.au>. Rochfort, Scott "Singapore 's Tiger Airways to Pounce on Australian Domestic Market." Channel News Asia 9 Feb. 2007. 17 Feb. 2008 </www.channelnewsasia.com>. Stenshol, John Titelius, Regina. "Airline Price War Begins." The Cairns Post 26 Feb. 2004. 15 Feb. 2008 <www.cairns.com.au>. Virgin Blue 1922 The first scheduled Qantas mail and passenger flight operates from Charleville to Cloncurry, Queensland. 1924 S M Bruce flies Qantas, becoming the first Australian Prime Minister to use an aircraft for official travel 1947 The Australian Government buys all shares in Qantas; the airline introduces Constellation aircraft on the London route and operates its first flight to Japan. 1953 Qantas introduces tourist (economy) class on the Kangaroo Route to the UK. 1971 Qantas introduces the jumbo jet - the Boeing 747. 1974 Qantas establishes a world record by evacuating 673 passengers on one of its flights from Darwin after the city was devastated by Cyclone Tracy.