Qantas

       


 

MGMT300013
 Strategic
 Management
 

Qantas:
 Leading
 the
  Domestic
 Space
 
Semester
 2,
 2011
 
 Group
 Assignment
 
 

Christian  Obregon  544919   Dhananchayan  Narenthiran  286487   Fraser  Wayne  546932   Juan  Hidalgo  546003  

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Executive
 Summary
 
The   ever   enduring   battle  for   a   sustained   competitive   advantage   is   no   stranger   to   any   mature  firm  well  positioned  in  its  industry,  and  Qantas  is  no  exception.     Qantas,  as  the  world's  second  oldest  airline  and  Australia's  largest  carrier,  currently  holds   about  63  percent  of  Australian  Domestic  Airline  market  share,  making  it  the  main  airline  in   its  country. With  a  history  of  safety,  reliability,  operational  and  engineering  excellence  and  

transportation  and  airfreight  services.   The   Australian   domestic   airline   industry   is   comprised   of   only   four   main   firms,   which   include   Qantas,   Virgin   Airlines,   Jetstar   &   Tiger   Airways.   This   shows,   in   essence,   that   this   industry  is  dominated  by an  oligopoly.     The   following   analysis   hopes   to   sh   competitive  

advantages,  stemming  from  the  assessment  of  both  external  and  internal  environments.   External  analysis  will  focus  on  analysing  the  main  macro  environmental  factors  that  affect   this  already  mature  industry,  ranging  from  oil  prices  to  natural  disasters.  To  compliment   this analysis,  the  use  of  Porter's  Five  Forces  framework  will  be  applied  to  the  industry  in   order   to   assess   its   general   profitability   and   how   attractive   it   is   for   both   current   and   potential  competitors.     In   terms   of   the   internal   analysis,   the   report   will   then   proceed   to   show   a   Value   chain   analysis   based   on   its  significant   processes.   This   will   then   show   the   source   of   Qantas'   capabilities  to  maintain  itself  as  the  main  company  in  this  industry  and  how  it  adds  value   to  its  industry  and  delivers  it  to  its  customers.     Afterwards,  by  discussing  the  distinct  qualities  Qantas  possesses,  it  is  possible  to  conclude   that   Qantas   holds   a   sustainable  competitive   advantage   in   the   industry   due   to   its   brand   names  and  capital.     1  |  P a g e    

Finally,   it   is   possible  to   conclude   that,   as   long   as   Qantas   continues   to   work   on   its   brand   image   through   its   carbon   neutral   program,   frequent   flyer   program,   its   multiple   social   endeavours   and   keeping   its   high  security   standards,   it   will   hold   this   sustainable   competitive  advantage  for  the  foreseeable  future.      

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Contents
 
Introduction  ........................................................................................................................................  4   Macro  Environmental  Trends:    Opportunities  &  Threats ...................................................................  7   Fuel  Prices  .......................................................................................................................................  7   Alternative  Fuels  .............................................................................................................................  7   Carbon  Tax  Legislation ....................................................................................................................  8   Natural  Disasters  .............................................................................................................................  8   -­‐Forces  .............................................................................................................................  9...