Qantas Airline - Information System - Case Study Example

Running Header: Qantas Airline: Information System Student’s Name: Instructor’s Name: Course Code: Date of Submission: INTRODUCTION The airline was founded in 1920 in the Queensland and registered as Queensland and Northern Territory Aerial Services Limited (QANTAS). The airline boasts of core values such as operational reliability, customer service, excellence in safety and engineering and maintenance (Qantas, 2012). The airline engages in other service such as operating subsidiary airlines, Qantas holiday as well as Q catering. Stiff competition, financial and physical risks are some of the major challenges that the airline industry faces. Therefore, providers of air transport services must have strategic advantage to be able to effectively compete in the airline industry (Grant, 2009, p.279). Information System and e-commerce are critical component that can be exploited by firms so as to gain competitive advantages. The report outlines how Qantas airline has utilised e-commerce so as to offer unrivalled services so that they can lock in customers. TASK 3 Function, Processes at the Functional Areas The core functional area of the firm is to offer flights from different locations. To attain this, Qantas Airline engages in various functions and process that allows it to offers quality services as compared to their competitors. To analyse the function and processes employed by Qantas, the paper adopts the framework of marketing mix as the analysis model. The reason behind this is because the marketing mix is the action plan which is used to actualise the strategic plan of firm and thus, is done on daily basis. These include service packaging (flights), promotion of the same and delivery. Moreover, the basis of using this approach is premised on the grounds that the marketing mix is used to attract and retain customers to a business and this is the core of any business. Products Business products must provide value to the customer. Qantas has well succeeded in this through its regular marketing analyses that are carried out to determine customer satisfaction and as to whether the services being offered meet the world class standards regardless of whether it is domestic or international (Poole & Viggo, 2001, p.165). In the airline industry, maintaining superior services through high standard customer service, timeliness and assured safety and comfort are the critical things that firms such as Qantas have capitalized on to develop superior brands (Qantas, 2012). The firm offers travel services for different classes of travellers like economy and business. Pricing Continuous examining of the prices is encouraging and helpful in retaining higher customer base in the airline market. Being a sensitive industry, customers are very couscous on the ticket prices. Any change of price can easily lead to a high loss of customers to opponent firms (McAfee & Velde, 2009). Qantas constantly review its prices according to economic shifts and travellers patterns. Over time Qantas has changed its domestic and international fare structures and continue to offer a broad range of discounted fares that are more flexible with simple set of conditions. Most domestic fares are one way basis which makes the company to have a variety of price options (Qantas, 2012). Promotion Mostly in marketing, promotion has been one of the most used elements of market mix. In the airline industry, firms such as Qantas has well utilized this especially during peak seasons and during low seasons to encourage travellers to take buy tickets at lower costs (Qantas, 2012). Qantas has ventured into using the internet, billboards, advertising on radios, in hotels and restaurants, games and sports wears. The airline industry advertising and public relations has grown and now gone even closer to people than ever before. Qantas has a well organized frequent flier miles program for its regular passengers. This enables its travellers to accumulate miles while they are travelling and eventually redeem for tickets (Qantas, 2012). Place Place refers to the place where customers can buy products and how the products can be sent to them. In the airline industry, smart systems have been developed that are computerized and which run on web based platforms. This includes ticket booking and reservation. Customers are able to book for their seats at a convenient time without having to go to the airport. Online reservations and booking also allows payments to be done online (Grant, 2009, p.101). Qantas system is well developed using the latest software technology which runs on fast servers. Thais reduces traffic on the systems and ensures any information processing is done in real time (Qantas, 2012). Packaging It is important for a business to develop a habit of examining every visual element in the packaging of the products a business produces. Customers prefer to get the value for their money on the products or services they pay for (Clougherty & Zhang, 2009, p.443). Qantas airlines have developed a culture of providing a unique style in its flight services. This is from how the cabins are set up, the seat arrangements, the entertainment that is provided and the welcoming comfortable and relaxing atmosphere. The hostesses and the sales and customer support staff are well dressed and welcoming. They handle customers in a friendly manner with ultimate respect and decency. This makes travellers feel secure and more comfortable as they look forward to a relaxing and enjoyable journey (Pi & Huang, 2011, p.4403). Strategies Implemented at Qantas Two complementary brands Qantas has in place strategies aimed at enabling it compete effectively in the global market place. Qantas has two strong complementary brands; Qantas and Jetstar as the best premium and low fares brands respectively. The merger between Qantas and Jetstar is aimed at strengthening the group’s business and give it strategic advantage to compete. The merger between Qantas and Jetstar seeks to ensure that the group develop and operate an expanded network of airline especially in Europe using the groups own aircrafts thereby keeping all the revenue generated and provide sustainable returns to the shareholders (Qantas, 2012). Operational efficiency & Safety The airline seeks to further its business productivity and performance as well as to achieve simplicity in its operations. Major projects have been put in place both at internal levels and with suppliers to enable the airline realize its strategy of efficiency of operations. Qantas group prioritizes safety of both their aircrafts as well as the infrastructure associated with it (Qantas, 2012). Right aircraft, right routes & excellence in customer experience To be competitive in the airlines industry, Qantas provides the right aircraft for the right routes. This strategy facilitates fleet renewal thus enabling Qantas group to deliver world class and effective air transport services on an optimal route network. Qantas therefore seeks to expand and operate in both domestic and international networks and routes. The group targets Europe, Asia as well as Australian routes. Qantas recognizes that customer experience is the cornerstone of their airline business and thus seeks to ensure excellence in customer experience through effective customer relationship management (Qantas, 2012). E-Business and E-Service The company has adopted the use of information technology so as to service their customers and enhance their relationship with their business partners. At Qantas through their online portal, passengers are able to book their flights and do check in process. This has enabled them to be ubiquitous as clients can do business with them irrespective of their location. Moreover, this enhances efficiency as the process is real time. In addition, the firm has a shop dubbed “Qantas Shop” where club members can buy online at discounted rates. Other services offered through their online portal include route maps, travel advice and media room (Qantas, 2012). TASK 4 E-commerce Business Model & Mechanism Adopted by Qantas Airline The concept of people of other businesses being able to buy and sell products over internet and web has grown tremendously. This is based on the fact that it is real time, ubiquitous and does not require physical presence. Business models are how businesses structure their relationships so that they can create value and make profits. The business model a company adopts influences how it structures it e-commerce portal. Business models are best understood in relation to various e-commerce sectors. There are four models that are easily identifiable. These include business-to-business model (B2B), business-to-consumer model (B2C), consumer-to-consumer model (C2C) and consumer-to-business model (C2B); (Mahadevan, 2000, p.57). one thing that is evident is that a business can adopt two or more model based on the fact that businesses are like open systems and thus, they interact with their environment in a backward and forward linkage format. One of the e-commerce business models that Qantas Airline has adopted is business-to-consumer model (B2C). This kind of platform involves engagement between sellers (business) and the ultimate consumer. The essence here is for the business organisation to display their products catalogue online (Mahadevan, 2000, p.57). The evidence that one can see from the above argument is that from the Qantas Airline website, one can book flights to all destinations they service. Qantas has catalogue of routes they service and fare to these routes depending on which class the customer would intend use. Once an individual has picked the details and accepted the conditions, he or she is required to provide payment through avenues like wire transfer or credit card. This is called E-tailer/ storefront model since customer and seller interact directly. Apart from E-tailer business to consumer model, Qantas Airline engages in what is called a market creator business to consumer model (Mahadevan, 2000, p.57). Market creator model is where a business uses internet technology to build a platform where buyers and sellers are brought together. The reason behind is to act as a middleman and not be involved in payment and delivery process. This kind of approach is evident in Qantas Airline whereby as a process of value addition, the airline’s website has portal for accredited and associated services which are independent of the company. The company offers a platform where their partners can display their products or services. For instance in their booking portal there are other associated service providers like hotels, cars, transfers and event organisers. TASK 6 Evaluation of the Qantas Website in the Context of Customer Relationship Management While the main of business is to make profits, for this to be guaranteed firms have to manage their relationships with their customers well through physical, human and communication approaches. Well designed customer relationship offers a leeway for exceptional interaction between the firm and the customer. Business can’t rely on single point CRM. There is need for multiple platforms so as to cater for different cadre and needs of a customer. Online trading requires an information system platform that would present an avenue where function providers like sales people and customer care can interact and provide services directly to the customers. This means having the right methodologies, software and internet capacities (Peel, 2002, p.3). One of the important aspects in CRM analysis is the customer’s contact point inter-phases. This is customer centric marketing approach (Peel, 2002, p.120). The beauty of this approach is that it gives platform where customer can interact with the business and its processes in virtual or non-virtual environment. In the Qantas Airline website, there are numerous customer contact points that can be identified. In their website one has an opportunity to talk directly to sales team through voice over internet protocol. This is 24/7 service where one can conduct inquiries. Equally they have phone support. In this platform, one can chat using text or through multimedia basis of text, video and sound. The next platform is what they term as “red mail” this is a mail platform where Qantas is able to inform their customers about their services, changes in flight schedules and send feedback on enquiries. In addition, there are platforms for booking online and doing check in online. Apart from the above, the firm has integrated its website with other social media like Facebook, Myspace and Tweeter among others. This makes it easier for customers to interact with them. The other bit is a customised mobile phone services. This they call Qantas mobile where one can view the status of his/her booking and other more information. The recommendation that that the group can offer is that these facilities in the website are easy to use and thus, there is no need to change them. References Clougherty A. J & Zhang, A. (2009). Domestic Rivalry and Export Performance. Canadian Journal of Economics, 42(2): 440-468. Grant, R. M. (2009). Contemporary Strategy Analysis. Oxford: Blackwell Publishing. Mahadevan, B. (2000). "Business Models for Internet based E-commerce: An anatomy". Working paper. Retrieved, September 6, 2012 from: http://www.pearsoned.ca/highered/divisions/text/cyr/readings/MahadevanT1P2R2.pdf McAfee, P. R. & Velde, V. (2009). Dynamic Pricing in the Airline Industry. Retrieved, September 6, 2012 from: http://vita.mcafee.cc/PDF/DynamicPriceDiscrimination.pdf Peel, J. (2002). CRM: Redefining Customer Relationship Management. Woburn. MA: Elsevier Science. Pi, W. P & Huang, H. H. (2011). Effects of Promotion on relationship quality and customer loyalty in the airline industry. African Journal of Business Management, 5(11): 4403- 4414. Poole, R. W. & Viggo, B. (2001). How to Commercialize Air Traffic Control. Los Angeles: Reason Public Policy Institute. Qantas (2011). Our Company. [Website], Retrieved, September 6, 2012 from: http://www.qantas.com.au/travel/airlines/company/global/en Read More