Qantas Case Study

QANTAS

CASE ANALYSIS REPORT

MARK ANTHONY ANDRIJCICH

STUDENT NUMBER - 10513924

MGMT3347 - STRATEGIC MANAGEMENT

SEMESTER 2, 2011

TUTORIAL 4 - MONDAYS, 15:00

ROOM BUSN:161 - THE CULLITY TUTORIAL ROOM

TUTOR - DOUG MOFFAT

INDIVIADUAL CASE ANALYSIS REPORT

TABLE OF CONTENTS

EXECUTIVE SUMMARY....................................................3

EXTERNAL ANALYSIS OF QANTAS..............................4

--Industry

--General Environment Analysis

--Six General Elements --Demographic

--Economic

--Global

--Political/Legal

--Socio-Cultural

--Technological

--The Industry Environment

--Michael Porter's 5 Forces That Shape Strategy

--Competitive Environment

INTERNAL ANALYSIS OF QANTAS..................................7

--Qantas' Resources

--Tangible Resources

--Intangible Resources

--Identification of Qantas' Capabilities

--Qantas' Core Competency Analysis

--Qantas' Value Chain Analysis

--Qantas' Weaknesses

--Qantas' Strengths

ANALYSIS OF QANTAS' CURRENT STRATEGIES.........10

--Business-Level Strategy

--Corporate-Level Strategy

RECOMMENDATIONS...................................................11

REFERENCES...........................................................14

EXECUTIVE SUMMARY

The report features both an external and internal analysis of Qantas, the current strategies employed by Qantas, followed by the author's strategy recommendations for Qantas based on the internal and external analysis and in doing so provides an answer of yes to the question posed at the end of the Qantas Case Study; whether Qantas should operate a full-cost and a low-cost airline side-by-side?

The external analysis includes: a general environment analysis of the six generic elements (demographic, economic, global, political/legal and socio-cultural (Hanson et al. 2011); an analysis of the industry environment using Michael Porter's Five Forces Model (bargaining power of suppliers, bargaining power of buyers, potential threat of new entrants, intensity of rivalry among competitors and threat of substitute products) to determine the attractiveness of the airline and aviation industry (Clegg et al. 2011); and a look at the competitive environment. The external analysis is used in the report to highlight Qantas' opportunities and threats. The internal analysis includes: identification of Qantas' resources (both tangible and intangible); Qantas' capabilities (which tell exactly what Qantas does in its day to day operations); core competency analysis (which will aid in the author's recommended strategies); a value chain analysis (showing the primary and support activities that Qantas performs); and a look at Qantas' weaknesses and strengths. Qantas' strengths and weaknesses will become more apparent as the internal analysis is formed and documented.

An analysis of Qantas' current strategies will be documented in the form of business-level strategy and corporate-level strategy, to show exactly what Qantas is doing now.

It is with the background of the external analysis, the internal analysis and the analysis of Qantas' current strategies that this author will be able to make recommendations in the final part of the report. Five recommendations are made by the author for Qantas' future strategies in the market.

Qantas Airways Limited (Qantas) is engaged principally in providing air transport services, at both international and domestic levels. It is Australia's largest airline, the oldest continuously operated airline in the world and the second oldest in the world overall (Independent 2009). Qantas was founded in the Queensland outback in 1920 (Qantas 2011a). The company is one of the world's major long-distance airliners. It operates in the low-cost airline segment through Jetstar. It is also engaged in providing time bound freight services. Other services offered by Qantas include international and domestic holiday tours, catering, ground handling, and engineering and maintenance services. The company also offers group flight training, and leverages its infrastructure and competency for operational training. It also provides services for defense sector in aircraft and engine maintenance, among others. Qantas is headquartered in Mascot, New South Wales, Australia (Qantas 2011b).

EXTERNAL ANALYSIS OF QANTAS

INDUSTRY

Qantas Airways Limited is in the airline and aviation industry--both domestic (Australian) and international. Its main business is the transportation of passengers using two complementary airline brands--Qantas and Jetstar (Qantas 2011a)

GENERAL