The paper "SWOT Analysis of Qantas" is a good example of a management case study. According to Hansen et al. (2011), strategic management is the process of monitoring an organization’ s practices, in order to ensure that the implemented practices enable the organization to achieve its goals. Through the integration of the implemented strategy, a company aims at improving performance, maximize its profits and gain a competitive advantage over its rivals (Chandler et al. 2000). Therefore companies are keen to formulate strategies that are tailored to exploit an organization’ s internal and external environment.
This process requires an organization to constantly assess the productivity of its strategies (Hansen et al. 2011). This essay is going to focus on how the internal and external environment influences the running of an organization. This will be achieved by conducting an analysis on Qantas Airlines using the SWOT analysis, Porter’ s five forces of analysis and four sources of competitive advantage. In discussing the strategic management of Qantas airline, it is important to first identify the company’ s mission statement and its business strategy. According to Qantas Annual Report (2009), Qantas’ corporate mission reads, “ The world Best Low Fare Carrier” .
Qantas continues to use its mission statement as a business strategy to operate its organization and several of its subsidiaries. According to Qantas Annual Report (2009), the Qantas brand has maintained loyal customers by providing premier services and prices. Therefore, Qantas has mainly adopted the differentiation and cost leadership strategy as their main strategy to gain a competitive advantage over its competitors. SWOT Analysis of Qantas The swot analysis presents the current state of Qantas analysis. This analysis discusses the strengths, weaknesses, opportunities and threats of an organization. Strengths Over the years, Qantas has maintained a strong relationship with its shareholders.
For instance, the company continues to thrive by sustaining customer loyalty through a reputable brand image and services (Sky Trax Airline Awards, 2010). Additionally, the company trains its employees exclusively thus maximizing on performance and labour output. Nonetheless, Qantas has signed partnership deals with other companies such as AirAsia as a means to increase their market base and reduce travel fare. Such a strategy has enabled the company to stay loyal to its mission statement as a “ low fare carrier, ” attracting millions of passengers across Asia and Australia.
According to Sky Trax Airline Awards (2010) Qantas operations have maintained tight security thus gaining more trust from its customer as safety is a priority in the aviation industry. With these attributes, the company enjoys advantages by increasing productivity and customer satisfaction. Weaknesses One of the major weaknesses experienced by Qantas is the increased maintenance cost incurred by the airline. According to the Qantas annual report (2008) the company has in the past been forced to commit 30% of its finances to pay its employees.
This is a setback for the company it may end up facing financial constraints in the near future, which may lead to increased fares and reduced labour force. Opportunities Daggett et al. (2006) affirm that the use of alternative fuel in the transport industry is quite economical. Therefore if Qantas is able to adapt the use of liquid hydrogen, ethanol or methanol, the company is likely to cut a lot of its operating costs. The company also has an opportunity in investing in new technology which will advance its operations through the internet and help it reduce labour costs.
Additionally, the company can take advantage of the growing world economy to go global and increase its market base (Balenger et al. 2000). With its premium prices by partnering up with other airlines in Africa, Qantas will increase its profits substantially.