An Australian Airline (Qantas) Essay Example | Topics and Well Written Essays - 3000 words

An Australian Airline (Qantas) - Essay ExampleCenter of discussion in this paper is Qantas, an Australian Airline that had so far been enjoying premium denounce equity but lately ash been experiencing declining sales and market share. reverting system should involve extension and expansion of the geographical region. Qantas plans to extend its services with an Asiatic hub and serve the underserved Asian markets. SWOT analysis had revealed that opportunities in this region are immense but they should focus on creation a premium corporal airline. Earlier the recommendation was to focus on new-sprung(prenominal) product development, project for newer destination with fewer carriers and attract new customer base. Thus the first alternative to continue with Qantas brand and extend service in international sectors is not feasible and has inherent risks. Therefore, the airline should start its new carrier as a premium merged airline with focused chokeership having string corporate vision. They should be able to provide all on-board facilities based on an evaluation of customer needs and convenience. This dodge is in alignment with its corporate vision which is to operate the worlds best premium airline. This strategy would require 3-4 years to become effective as fresh symmetricalnesss, landing rights, and delivery of new aircrafts would gather in to be obtained. This also requires training and development of the staff, better employee relationships and focus on profit maximization. This is an achievable strategy as the airline has abundance of experience in being a legacy carrier. They also confirm experience of dealing with the Asian clients because of Jetstar, their LCC. It is expected that this strategy would be able to provide the expected synergies. 2. substitute recommendations Qantas Airlines, proposing to start a premium carrier with as Asian hub is subject to regulations imposed by the Australian governance as they face charges against layoff s. It has been recommended that the new premium carrier should focus on Singapore as the hub and the strategy that has been recommended was to focus on product development and new market development. This strategy would disturb its agreement with Oneworld partners and especially Cathay Pacific. This paper analyzes the proposed recommendations and provides alternative strategy identification and discussion. 2.1 Alternative strategy 1 As of now the strategy is to start a new premium brand with a minority venture which would help them obtain landing rights in Asia and also feed the base hub with international traffic. However, this strategy could lead to fragmentation and dilution of its core brand as it already runs a low cost Jetstar subsidiary which operates in Asia. They should hence focus on the base brand and develop it. 2.1.1 Gap Analysis The airlines vision is to be the first next generation premium carrier (Qantas, 2009). Brand Qantas is well established in the minds of the p eople and continuing with the alert brand instead of a new carrier would be a strategic fit with their corporate visions, mission and goals. They have the necessary resources in terms of human capital such as teach pilots and operations staff. This strategy would eliminate the existing pilot agitation in Australia and they could save face against government opposition. 2.1.2 Changes in the current marketing strategy With this new strategy Qantas would not have to focus on new product development. However, their target segment, market positioning and the distribution channels would remain the same. They could continue to snap new destinations to the new segments through innovative strategy. To differentiate itself from other products, 2.1.3 Expected results This strategy would help in better allocation of resources and utilization of unutilized resources. At the same time, financially there would be cost savings as the new brand need not be promoted separately. Marketing efforts t oo would be