The paper "Qantas Premium Service" is a worthy example of an assignment on marketing. The company I have chosen to offer my product is Qantas airline Australia. The product in the form of premium services to travelers and especially tourists to Australian tourist destinations. The product will also be offered to travelers in other regions of Asia-Pacific and not only Australia. The region is growing very fast in terms of economic development. I believe there is a growing stable market for premium airline services to travelers with a high disposable income. Qantas was founded in 1920 and since then has grown to become a leading airline in long overhaul air travel in the world.
This has been largely due to a reputation of excellence in safety, operational reliability, engineering and maintenance, and customer service. The company operates under two brand names; Qantas, Jetstar. The company also operates under subsidiary business and specialist markets such as holiday, travel and in-flight catering (Qantas, 2013). The company employs 35, 700 people 93% of them being in Australia only and flies over 140 destinations across the world.
The company posted $ 95 million profit before tax from its operations. Within the same period, the company had increased its revenues by 6% to $15.7 billion (Qantas, 2012). Considering the challenging environment of the air travel industry in the world characterized by increased fuel prices and poorly performing economies around the world, then it can be concluded the company strategy to make a profit for its shareholders is yielding positive results (Qantas, 2013). 2.0 Situational analysis: Political Politics affect business in every sphere of the economy. The airline industry is a closely monitored sector especially since the threat of terrorism became so much a headache in the 21 century.
The rise of terrorism has led to increased security measures especially for airlines operating direct flights to the US and other European countries. The strict barriers in the airline industries around the world are easing and being replaced by regulatory frameworks that seek to open up the skies for airlines to operate freely (Hitt & Ireland, 2010). However, crucial alliances like one-world which Qantas is a member are still vital in ensuring access to global markets.
Prolonged EU politics regarding the future of the Euro Zone have had an effect on Qantas Airline long haul flights to the region. Australia being a stable democracy means Qantas is not in any way threatened by political instability from its main market. Economical The airline industry is closely attached to the performance of world economies, as world economies plunge and so does the demand for air transport as businesses experience low growth and thus the little movement of people doing business (Delfmann, 2005). Qantas Airline's long haul program has been hit hard by the Eurozone economic downturn.
Much of the company’ s revenue is eaten up by the high cost of fuel followed by staff expenses.