Essays on Strategic Marketing Plan for Qantas Airline Case Study

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The paper “ Strategic Marketing Plan for Qantas Airline” is a  convincing variant of case study on marketing. In a generic overview, Qantas Airlines was founded in 1920. Over the years, Qantas has grown into becoming the largest international as well as a domestic airline in Australia. In this extensive period, this airline has built a robust reputation founded on safety, consumer service, engineering, and maintenance as well as reliability of operations. Qantas offers a wide alley of services but the primary service which will be explored in this analysis is the transportation of consumers.

This can be perceived as the main service offered by this airline which is undertaken using two complementary airline brands namely Qantas and Jetstar (Qantas Airline Website, 2013). In regard to the mission, this company seeks to meet the expectations of its consumers every time they fly and dedicated towards continued investment in the business aimed at the provision of exceptional services to its consumers (Qantas Airline Website, 2013). This mission is relevant in the sense that it is based on the high competition in the Australian aviation industry, the company is committed to meeting the dynamic consumer needs.

Additionally, it reflects the social values of quality services and customer care. Lastly, Qantas airline has four main strategies which are intertwined in a robust hierarchy. At the corporate level, there is the strategy of protecting and enhancing the revenues as well as optimization of leverage and financial performance. At the business hierarchy, there is the strategy of cost control while at the functional level Qantas has the strategy of improving productivity and operating efficiency (Qantas Airline Website, 2013).

All these are linked to the SMART objectives (specific, measurable, attainable/achievable, relevant and time-bound) in terms of expanding the market share as well as the profitability the airline based on the core business of transportation of consumers. Industry overviewAs noted in the preceding section, the aviation industry in Australia is characterized by extensive competition. In relation to Qantas airline, Porter’ s five competitive forces can be perceived to influence the operations of this airline. In regard to the threat of new entrants, the entry of low-cost airlines in the market has put extreme pressure on the operations of Qantas.

This fact is fortified by Porter (2008) who revealed that new entrants in an industry introduce the desire to capture increased market share which in turn puts extreme pressure on prices and costs required to compete. In regard to the bargaining power of consumers, the instigation of these low-cost airlines drastically increased the consumers’ bargaining power in the sense that they can opt to travel using airlines that offer the lowest travel rates and with high-quality services. This can be perceived as a development that forced Qantas to introduce Jetstar which is a low-cost airline affiliated to Qantas.

On the other hand, this also elevated the bargaining power of suppliers, for instance, suppliers of labor who were endowed with new ventures where they can supply their services. Additionally, Qantas has been subjected to the threat of substitutes, mostly with the expansion of other transportation infrastructure in Australia, for instance, road and rail. This has had ripple effects on the attractiveness and profitability in the aviation industry, a fact which is also revealed by Porter (2008).

Lastly, increased competition from other airlines, for instance, Virgin Blue which entered the Australian market in 2000 and proceeded to capture an impressive 25% of the total market share can be perceived as a key threat to the profitability of Qantas.  

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