Essays on Qantas Airlines - Efficient Marketing towards Maintaining Comparative Advantage Case Study

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The paper "Qantas Airlines - Efficient Marketing towards Maintaining Comparative Advantage" is a perfect example of a marketing case study. According to Ostertag et. al. (2007, p. 6), marketing is often perceived as the delivery of consumer satisfaction at a profit. In this regard, marketing can be viewed as a philosophy that results to an ideal process through which institutions, collectives and individuals are endowed with the chance to obtain what they need which is made possible through value identification, providing it, communicating it and the eventual process of delivering it to others.

In this regard, the central tenets that determine the success of strategic marketing have for long been pointed as the needs, values and wants of the consumers, exchange, communications, products and relationships. Executive summary The year 2000 saw the entry of Virgin blue into the Australian airline's scene and this firm has moved in a swift speed to capture close to 25% of the market share, a consumer base which is projected to expand if the urgent measure is not formulated and implemented aimed at curtailing this trend.

The success of Virgin blue has been founded on the pricing strategy that this firm has put into utility whereby it has opted to offer cheap airfare and still managed to maintain its profitability. This situation is worsened by the fact that Singapore Airlines which is considered as the premier airline in the larger South East Asia region has decided to venture into the business of providing low-cost services to the consumers through the instigation of a new venture referred to as Tiger Airways which despite a slow start, it is endowed with the capacity of capturing a substantial share of the Qantas airlines consumer base. The unfortunate situation is whereby Qantas Airlines cannot compete with both of the above airlines in providing cheap airfare without posing detrimental impacts on its feasibility, a fact which is founded on two factors.

Firstly, Qantas has established a reputation of offering exemplary services which can be damaged through price reduction. Secondly, this firm has engaged massive long-term investments in terms of employees as well as a capital investment which make price reduction unviable for the company. Nonetheless, it is evident that the company is obliged to establish a new cost airline if at all current and future survival is to be guaranteed.

This will entail a strategic approach in tenets like deciding the name of the new venture as well as profound consideration of other factors that have a direct correlation with the eventual success of this new venture. This is explored in the subsequent analysis. Identification of opportunities According to Urwyler (2006, 19), people often discover opportunities as a result of idiosyncratic knowledge and specific cognitive properties.

Thus, it is important for Qantas airlines to engage in-depth knowledge in identifying the opportunities in the market. The airline is endowed with diverse opportunities in the current and future market in both Australian and international airlines industry. One of the chief opportunities is due to its already embedded share in the market. In this regard, the airline has already established itself in the market as a dependable provider of airline services in terms of quality. Therefore, the instigation of a new, lower price airline will find an already established market which is ready to embrace these new price dynamics.

Secondly, there is high market segmentation in Australia whereby the consumers are differentiated in terms of class, age, occupation, values and behaviors. This is parallel to the inference by Thomas (2007, p. 4) who cited that segmentation can define opportunities for new products targeted to each psychographic segment. In this regard, based on the fact that the market is highly segmented will mean that Qantas airlines will be empowered to maintain the consumers for its relatively high price services as well as capturing new consumers who are price-sensitive, thereby expanding its consumer base.


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