Qantas Airline - Mission, Vision, and SWOT Analysis - Example

Client inserts his/her name Tutor’s name Name of institution Course title Date of submission Introduction Aim of the report The paper aims at presenting a comprehensive analysis of the Qantas airline in regards to its business position. It entails a close observation of the strengths, weaknesses, opportunities and threats enable the person reading it to understand why the company needs to carry out advanced business strategies in order to maintain its business pose. Mission and vision The Qantas group has the long term vision of operating the world’s best premium airline, Qantas, and the world’s best low fare carrier, Jet star. The main mission is to return Qantas international to profitability by building a long term shareholder value. It also intends to strengthen Asia as a new premium as a full service airline based in Asia as a new brand to assist in the exploration of various base locations. Besides, the company is working towards deepening and broadening alliances to ensure network adequacy and effectiveness. Most significant is the objective to ensure business improvement through safety policies, right crafts and routes, customer service Excellency and operational efficiency. (Qantas Annual Report 2010). History The company began through the lieutenants Wilmot and Paul who were from the World War II service. They had in mind that with the establishment of a new airline, it could be easy to move across sparsely populated borders. The services began in terms of joyrides which later developed into a business blooming to date. Year after year, new advancements are observed within the company. Currently, Qantas is the second oldest airline in the world. It is situated in Queensland and was founded in 1920. In Australia, it is the largest airline both domestically and internationally. It is known for its distinctive aspect of operating long distance airlines and carriers. Moreover, Qantas is the pioneer of fright services from Australia to North America as well as Europe. Lead into SWOT A business organization requires performing a systematic analysis of its market position in order to monitor its operations in terms of performance. SWOT The term SWOT refers to strengths, weaknesses, opportunities and threats that characterise a business institution. Strengths refer to the aspects of a business that place it above the competitors while weaknesses entail the aspects that disadvantage a business in comparison with others. Opportunities refer to the external elements that give the business a chance to perform better while threats are those that present a challenge to business’ performance. (Paul, 2000) Why people use SWOT According to Paul (2000), SWOT helps business people in the following ways: It Provides information that is significant for tactical planning. It enables the business to build on its recognizable strengths. Offers knowledge of the available weaknesses thus enables the businessmen to respond accordingly. The capacity for exploitation of opportunities is strengthened. Helps people, to evaluate the level of progress by analyzing the past, present, and the future prospects. SWOT Analysis This refers to a method employed by a business firm to evaluate the strengths, weaknesses, opportunities and threats in the business arena for a specified time. It is characterised by the identification of the business objectives as well as considering whether the external environment is favourable or not to the business venture, such that the possibility of achieving the set business objectives is known(Paul, 2000). Summary of findings, – where is Qantas now According to Qantas Annual Report (2010), Qantas is the best airline operator in Australia. The Qantas group has approximately 32,500 workers today. The services of this airline are offered across a network of 182 destinations in 44 countries, in Australia, Asia and the pacific, America, Europe and the Middle East of Africa. Qantas financial report indicates that the airline makes reasonable underlying profits. For instance, by 30th June, 2010, the net profit made by the company was 116 million us dollars. This is because the group is committed towards offering the best services characterized by high levels of integrity and business ethics. SWOT Analysis STRENGTHS Brand loyalty from Australians: The brand has gained a large customer base due to its unique and multifarious services. The unique features include the existence of various travel classes that give customers opportunity to make a choice. Besides, travelling is comfortable due to comfortable seats, free in-flight entertainment, availability of clubs and lodges, guaranteed seats, online booking and check in services and advance seat selection. Generally it has highly effective customer service aimed at excellence. (Qantas Facts) Safety: it offers quality services that many people consider being safe and secure. Throughout history, the company invests in obtaining new and modern aircrafts to ensure that passengers are safe during travelling. The cabin crew is well trained for the sole reason of security during travelling. The engineering department carries out servicing of aeroplanes in various places to ensure that the flight is in excellent condition as it travels. (Qantas Facts) Domestic Market share: Qantas has been able to maintain a large market share domestically. Most of the profits are obtained internally with Jetstar brand contribution a 62% proportion since it operates 2, 400 flights weekly to around 52 destinations domestically and New Zealand services. (Qantas Facts) Diversity in Business operations: Qantas has maintained numerous destinations within Australia as compared to competitor airlines in Europe, Australia, and North America. It also extends to Asia and Vietnam. Besides, the brand offers assorted services which include domestic, flights, international flights, Qantas freight and Qantas frequent flyers. (Easdown, 2006) Partnerships: Qantas has formed a one world alliance. The alliance entails eleven of the world’s leading airlines such as Qantas, American, British, Cathay Pacific, Finnair, Iberia, Japan Airlines, LAN, Malév Hungarian Airlines, Mexicana Royal Jordanian and Finnair. Besides, it operates within 700 destinations in the world. Moreover, it operates a subsidiaries network. Qantas’ network comprise of a82 destinations in 44 countries. (Goh, 2001) Environmental strategy: Through the use of sustainable aviation fuels, the company practises effective fuel conservation. Qantas has met various achievements including the publication of a performance data in regards to the environment using global guidelines, environmental conservation awareness among the employees, establishment of waste minimization initiatives and improved recycling systems, water conservation innovative processes and expansion of the green team of the organization who man the environmental conservation initiatives. The carbon offset programs aims at strengthening the conservation initiative among customers. Moreover, 200,000 trees are planted, and the company supports community groups that are involved in the conservation process. Qantas are self insured: This makes it able to respond to challenges faster and efficiently than the competitor airlines because it is well prepared in case of any impending challenge. It has assurance over risks, safety and security. Moreover, it is self insured with regard to occupational health and safety. (Warn, 2006) WEAKNESSES Qantas relies more on the income derived from domestic operation. It capacity is thus limited in the absorption of international capital. It makes losses when operating Asian and Europe airlines. A weak pattern of management is observed within the leadership system of the company. Management disputes have been on the rise which may lead to its collapse. There are no well established employee welfare units or unions which cause industrial action. For this reason, lack of employee loyalty is on the rise with many workers concerned about job security. (Datamonitor, 2011). In the recent past, the prices of flights have been going up which make many people consider the brand exorbitant. In addition, the actions taken by the company create a wrong public image of struggling to cut on costs. This entails overworking the staff while minimizing their number as discussed by Gelineau (2011). The auto check advancements and taking work off-shore are perceived as cost cutting strategies thus creating a low public opinion. Nevertheless, the media have highlighted the numerous disputes that the company has experienced in regards to leadership and management. This indicates that Qantas is unstable and may come down any time. (Mavis, 2011). Qantas is not an exception of the impacts created by the global financial crisis. The high end market reduces every time an economic crisis hits the states in which the company operates. For instance, increased fuel costs pose a formidable challenge which impacts the company’s choice of flights. It emphasizes on budget and teleconferencing flights to reduce costs. This exposes it to defeat by the competitors who focus on class rather than costs. (www.qantas.com). Qantas is limited in terms of geographical location. Australia is very far from access to many people as well as the entire world. It is kind of marginalized which makes the company rely on domestic income rather than international. (Datamonitor, 2011). OPPORTUNITIES Qantas prospects of growth is possible in Asia and Europe. It is wise to tap the market that has been identified as having an enormous potential. It has constantly established services in Asia which are advancing greatly (Goh, 2001). The company has the capacity to establish partnership with other companies. This could enable it to have linkages throughout the world. Moreover, the company is interested in setting up its operations overseas in countries such as Vietnam, Taiwan, Korea, and America. This will eliminate the weaknesses of the Australian location considered as a bad geographically. With worldwide linkage, more direct routes can easily spring up. The numerous partnerships have enabled Qantas to gain loyalty and trust throughout the world which has enabled it to access international government support (Qantas Facts). The group’s current position offers a strong foundation for the advancement in regards to the capacity of aircrafts. It is able to innovate and obtain aircrafts which can be used for specific purposes that are, for luggage, passenger travelling or tourist exploration (Datamonitor, 2011). There are multifarious offshore opportunities accessible to Qantas. They are able to cut costs greatly through the use of cheap fuel. Moreover, it can gain more international support because many nations consider it to bring employment opportunities for domestic citizens (Qantas August 2011 Investor Briefing) With good establishment in other countries, Qantas can venture into tourist transport in agreement with the international governments. This may in return increase profits as well as strengthen the connection and relationship with other nations (Qantas Facts). The numerous activities with other nations will establish a strong foundation for customer loyalty. In addition to the Australian loyalty, the brand will be acceptable and widely used internationally (Qantas August 2011 Investor Briefing). THREATS The image of Qantas is worsening in Australia. This may spill over to the nations as it moves to the global arena. The issues of cost cutting may be a grave threat if it gets international (Benns, 2010). Qantas is not the only airline existing in Australia as well as in the world. International competition is stiff and it is difficult to gain the loyalty of other governments which have domestic brands that they need to support. Running costs are high in the international scene thus posing a financial constraint to Qantas. The need to get international clients is hampered by the interior geographical location which is supports domestic operations Nevertheless, there are new airlines that are entering the market such as Tiger airlines. The competitor has proved to be cheap than Qantas and many people consider it. Being a budget airline, it may convert many customers making Qantas to lose its market command (RMMS case study). The bad culture is cause for alarm. The rising union crisis may affect employee loyalty thus low performance. According to Siva (2011), Qantas had an industrial action which stopped air flights for some days. This had adverse effects on the Australian economy. Due to regular disputes addressed in the media, many people have a negative perception of Qantas thus diminishing brand loyalty (Gelineau, 2011). Market share prices have been going down constantly in the recent past as indicated in share market websites (Morrell, 2007). Qantas cost cutting strategies are negatively affecting its quality of services because everything is done with the aim of reducing expenses while maximizing profits. As a result, the company’s vision of creating safety is dismantled. This is a serious threat to the company which may divert customers to more viable brands which offer quality services at a fair price (RMMS case study). References Benns, M. 2010., The Men Who Killed Qantas. Australia: Random House Easdown, G. 2006., “Qantas through the years." The Herald Sun. Retrieved 25th April, 2012. Goh, J. 2001., The Single Aviation Market of Australia and New Zealand. Britain: Cavendish Publishing limited. Gelineau, K., 2011, "Qantas to slash 1,000 jobs, start new Asian airline". Globe and Mail (Canada). Hierling, D., 2004, The Australian Airline Industry and the Case of Ozlet –A Strategic Analysis Report. GRIN Verlag. Mavis, T., 2011, “Qantas's negotiations with three unions fail" Flightglobal.com Retrieved 25th April, 2012. Morrell, P., 2007, Airline Finance. Ashgate publishing company. Paul, P. 2000., Marketing Construction Services. Industrial Press. Siva, G. 2011., "Qantas suspends operations after locking out striking employees". Flightglobal.com Retrieved 25th April, 2012. Warn, D. 2006., "Qantas to finally offer in flight broadband". ninemsn. Retrieved 25th April, 2012. Qantas August 2011 Investor Briefing: Building a Stronger Qantas Retrieved 25th April, 2012. Qantas Facts – Official Retrieved 25th April, 2012. Qantas Annual Report 2010". pp. 16, 48. Retrieved 25th April, 2012. RMSS Case Study www.rmms.com.au Retrieved 25th April 2012. Datamonitor 2011 www.datamonitor.com Retrieved 25th April 2012. www.qantas.com retrieved on 25th April 2012 Read More