The paper "The Problems Affecting the Performance of Qantas Group " is a great example of a management case study. Qantas is the leading air service provider in Australasia and the second oldest airline company in the world. Following the acquisition of Jester by Qantas, the company continues to record low-income benefits. As such, following a request by the CEO of the company, this paper seeks to present a report that uses SWOT analysis and Porter’ s five forces (market auditing tools) not only to show the importance of such tools in strategic management but also to identify the marketing and management problems that limit the performance of Qantas and provide appropriate remedies to the identified problems.
Therefore, for the report to achieve its objective it will put into consideration several aspects which include analyzing the current situation of the company, providing a situational analysis of the company using SWOT analysis and Porter’ s five forces model. This means that it will detail the purpose of the highlighted market auditing tools to the performance of the company. Therefore, in the context of situational analysis, the report will recommend new goals for the company, outline strategies of fulfilling the new goals, state the necessity of the goals and strategies and, finally, provide a tactical plan of achieving the goals. Current situation Qantas thrives on its mission statement to meet its projected objective as the best and reliable airline company in the world.
In this regard, the company’ s mission statement, “ reputation restoration, crisis confrontation, sustainable operation and future planning, ” combines together the goals of Jester and Qantas Airways. The combination brings about the current focus of Qantas group on the provision of safe air services, provision of quality services, the definition of appropriate airline routes, promotion of effective transport operations, and promotion of complementary branding for both Jester and Qantas Airways.
As a result, the business strategy for the company achieves airline safety, sustainability, superior branding, social responsibility, customer care, great organization, forward-thinking, maximization of operations, and timely collection of feedback. Additionally, the Qantas group employs variable business strategies such as differentiation and cost leadership to not only separate itself from other airlines but also give it a competitive advantage in the air service industry. Situational analysis Purpose of SWOT analysis Due to current low performance of the Qantas group, it is important for the company to use market auditing tools to formulate new goals and strategies for the company.
The main objective of carrying out market auditing of a company is to formulate a strategic marketing plan. In this regard, market auditing tools such as SWOT analysis plays an important role in the management and marketing of the Qantas group. The SWOT analysis’ purpose is to entail the description of the company’ s strengths, weaknesses, opportunities and threats (see attachment 1).
By describing the four aspects separately, the company can capitalize on its strengths to eliminate the weaknesses and exploit the available opportunities by taking into consideration the effects of the threats (Danaher et al. 2011, p. 588). For instance, if Qantas group undertakes a contextual SWOT analysis, the results from the analysis would reveal that the company’ s weakness lies in the framework of its cost structure. It is because; the company has a 20% higher cost compared to that of its closest competitors.
Alternatively, the analysis results would identify the available opportunities that Qantas can exploit to eliminate the cost weaknesses, improve its performance, expand its market and increase the income benefits (Fournier 2014, p. 436). In this context, the open opportunity includes reduction of operation costs by adopting and implementing e-commerce. The implementation of e-commerce means developing an infrastructure that encourages the company’ s exploitation of electronic commerce. In a nutshell, the purpose of undertaking a SWOT analysis of the Qantas group is to develop an effective marketing strategy by creating a market plan that fills the existing loopholes in marketing.