The paper “ Qantas and Jetstar’ s Capabilities, the Competitive Advantages and Core Competencies” is a persuading example of a case study on marketing. In this report, there is an internal analysis of the Qantas Group where there has been the identification of the group’ s capabilities, its competitive advantages, and its core competencies. The Qantas Group current strategies including the frequent flyer program have been discussed. The strength and weaknesses in the strategies have been identified and possible ways of improvements have been suggested. 1.1 Internal analysisThe Qantas Group's main venture is the transportation of passengers using Qantas and Jet-star the two complementary airline brands.
There are three divisions of Qantas Group: Customer and Marketing, Commercial arm and Operations. Commercial group is in charge of commercial planning, sales, and distribution, QantasLink and alliances. Customer and Marketing are in charge of customer experience, inflight services, cabin crew in addition to marketing. Under operation, there are Qantas aviation services and operations planning and control. Jet-star is the group’ s low fares airline which is also in charge of the operations of Singapore based Jet-star Asia. Qantas Frequent Flyer and Qantas Freight are also under the operation of the Qantas Group.
Qantas Group has a 27% share in Vietnam’ s Jet-star Pacific and 46% share in Air Pacific. The Group is also in partnership with Australia Post. The partnership includes Australian air Express which is a domestic air freight operator Star Track Express which is a national road freight business (Qantas Airways Limited, 2010). Qantas has competitive advantages in the Australian market due to its massive resources. Qantas purchased Impulse airline where there was a commercial relationship term signed when the airline withdrew the operation of scheduled services in its own rights.
There was the launch of Jet-star later in 2004 after Impulse had operated under QantasLink brand and livery as a fully-owned subsidiary of Qantas. Qantas was in the 11th position in terms of Revenue Passenger Kilometers (RPKs) according to 2009 data of the International Air Transport Association (IATA). (Qantas Airways Limited, 2010). 1n the years 2008/2009 there were 182 destinations in 44 countries in which Qantas group airlines offered its services that included 59 in Australia while 123 were in other countries that including those under the operation of codeshare partner airlines with the number of passengers that were carried being 41 million.
By September 2010 Qantas Group had 256 aircraft and the number of employees was 32,500. (Bamber, 2005) Qantas Group aircraft engineering and maintenance organization are one of the largest that is operating in the Asia-Pacific region. Qantas Engineering which is part of Qantas Airlines Operations has a reputation for operational excellence and safety with over 5,500 under its employment in the maintenance section in major Australian towns and overseas locations (Herald Sun, 2011).
Being one of the largest industrial organizations in Australia, Qantas engineering undertakes a variety of engineering, maintenance, training and support services and supply chain for aircraft. There is continual transforming of the arm in order to ensure the world’ s best practice performance is delivered and with globalization and consolidation taking place in aircraft maintenance, repair, and overhaul (MRO) the business aim is positioning itself as Qantas Group supplier of choice. Qantas Engineering offers its services for the Australian Defence Force and other airlines even though Qantas Group is the major beneficiary of its services.
For many years more than 80% of the Qantas aircraft heavy maintenance has been undertaken at Qantas facilities in Australia (Alan, 2004). In the situation where the facilities are fully occupied, there is the use of top tier overseas operations which have certification of the Australian Civil Aviation Safety Authority (CASA), Qantas and other national safety regulators are engaged. The supervision of all works is done by onsite Qantas engineers with the auditing of the facilities being done on a regular basis in accordance with Australian regulations.