Qantas澳洲航空战略管理报告英文原创

1、-. z.A Case Study Report of Qantas AirlinesE*ecutive Summary In this report, the author makes a case study of Qantas Airways, analyzes the e*ternal and internal environment of the enterprise with a series of analysis models such as PESTEL, Porters Five Forces, Value Chain, SWOT and so on, so as to f

2、ind the development issue of Qantas and put forward some practical remendations from different levels. On the positive side, the development of aircraft manufacturing, the improvement of additional business in civil aviation industry, the financial and policy support from government, the ease of tra

3、vel by aircraft at a cheaper price than before, the best services among other airways, the already settled fuel supply, all these enabled Qantas more room for development. However, the economic crisis of 2008 still had a strong hit on the pany, the first-class passengers sharply reduced. The emergin

4、g layoffs, cuts in positions and the general strike had a bad influence on the development of Qantas. Whats more, the decline in corporate credit rating made the situation even worse. Therefore, it is high time for Qantas to conduct a series of new strategies so as to achieve sustainable development

5、 and gain more profits. The remendations include strengthening cooperation and coordination with other airline panies, business e*pansion in Asia and Europe markets, implementation of better human resource management and keeping reducing operation cost. Table of ContentsE*ecutive summary.11. Introdu

6、ction.12. E*ternal Analysis.1 2.1 Industry overview.2 2.2 General environment analysis.4 2.3 The industry environment.5 2.4 The petitive environment.6 2.5 Opportunities and threats.63. Internal Analysis.6 3.1 Tangible and intangible resources.7 3.2 Capabilities identification.7 3.3 Core petency anal

7、ysis.8 3.4 Value chain analysis.8 3.5SWOT analysis .9 3.6Current strategies.94. Remendations.10 4.1 Business level.10 4.2 Corporate level.11 4.3 International level.11Conclusion.11References.12-. z.1. IntroductionQantas Airline was set up in Queensland, Australia in 1920 by two veterans. Superb repu

8、tation has made Qantas bee the symbol of reliability, security, advanced technology and high quality customer services in civil aviation industry. E*cept for the core business of passenger and cargo transport, Qantas Group also own many subsidiary panies includingQantasLink, Jet Star etc. (Qantas, 2

9、013) Meanwhile, Qantas also operate many other business relevant aviation, such as airline food and holiday tourism business. Currently, Qantas is still one of the leading long haul airline panies as well as one of the most powerful brands in Australia. It is maintaining the first class product and

10、services standard as well as leading the updated development of international civil aviation industry. (Shaw,2011)The health development of the civil aviation industry could present a country stronger petence and economic power. With the popularity of the civil aviation industry, petence among airli

11、ne panies bees fiercer. Therefore, studying the factors that influence or limit the development of civil aviation industry in depth has significant realistic sense.In this report, the author conducts a case study of Qantas Airline, analyzes the e*ternal and internal environment of the enterprise wit

12、h a series of analysis models such as PESTEL, Porters Five Forces, Value Chain, SWOT and so on, so as to find the development issue of Qantas and put forward some practical remendations from different levels. E*ternal Analysis When conducting a case study of a pany especially an international enterp

13、rise, it is important to analyze the e*ternal environment of the enterprise, the enterprise e*ternal environment is the joint name of the political, social, technological and economical environment etc outside the enterprise. 2.1 Industry overviewQantas Airline belongs to the civil aviation industry

14、. All aviation activities using all types of aviators e*cept for military uses are called civil aviation. Since the 1950s, the service range of civil aviation has e*panded constantly and bee an important economic section in many countries. The development of mercial aviation is mainly embodied as th

15、e rapid increase of passenger and cargo transport, regular airline routes cover almost every continent and countries. Balobaba et al,2009As mercial aviation has a series of advantages such as fast, safe,fortable and unrestricted by the landform, it has a unique position in modern transportation stru

16、cture, especially in long-distance high-speed passenger transport. It promotes the development of domestic and international trade, tourism and all kinds of munication activities, and makes it possible for the development of remote areas in short term. 2.2 General environment analysisEconomic: Since

17、 the breakout of the global financial crisis in 2008, Qantas Airways business has been affected a lot because the amount of domestic and international business and tourism travel decreases much. The international economic environment is depressing, thus result in the decreasing profit of internation

18、al airlines. Meanwhile, the price of fuel is still very high, thus narrowed down the profit space of civil aviation.Socio- culturalThe overall ine of the aviation industry in Australia in 2012 was around $79.6 billion, which accounted for 6.1% of the GDP, and solved the employment problem of over 0.

19、8 million population. Besides that, the aviation industry plays a very important role in social culture in Australia, the development of tourism industry is an evidence. Nand et al,2013) According to the 2012 industry report released by IBIS World, the appreciation of Australian dollar drives a larg

20、e amount of Australians to travel overseas. Currently, the overseas Australian tourists occupy around 30% of the whole population. It is estimated that till 2017, there will be around 50% Australians travel overseas.Nand et al,2013)Global:According to a report of IATA, Bloomberg Worldwide Airlines I

21、nde* indicates that the stock price of global airlines increases 9% in 2012, which was better than the overall performance of financial market. The fuel price keeps fluctuation but is still very high, with near $130 per tank.The global airline passenger transport volume increases 0.6%, while most ca

22、me from China market.In November 2012, international passenger transport demand increased 5.6%, new market performed well, year-to-yeargrowth rate was 3.1%. Airline panies in Asia-Pacific region developed very rapidly, year-to-year passenger transport and capacity increased 6.2%and 2.6% respectively

23、. Nand et al,2013) Though global economic performance was weak, the financial condition of most airlines was improved. TechnologicalThe science and technological innovation of aviation manufacturerssped up the development of civil airline enterprises. Since Boeing,the biggest aviation manufacturer i

24、n the world made the merger and acquisition of the worlds third largest manufacturerMcDonnell Douglas in the year 1996, the Airbus has been the only one rival of Boeing. Since that, the two giants havemade the invest large amount of money on new models research and development Balobaba et al,2009. T

25、hey have developed the worlds most advanced airplanes, A380 and B747, one after the other. These two new types of plane have the ability to fly long hauls cross two continents without stops. Besides, the new scientific and technological developmentimprove the services on board such as the wireless i

26、nternet, which attracts more business professional and young passengers because they could enjoy more convenience. As a result, in recent years, airplane has bee the main vehicles for long distance travel. Qantas has e*perimented a lot in air navigation and released many new measures, thus has saved

27、 the cost of the pany and also reduced environmental pollution. Due to this, Qantas won the Eagle Award of International Aviation in 1999 and 2005. (Barbot et al, 2008)Political-legalThe government of Australia has taken a series of measures to help Qantas Airways to overe difficulties and avoid bei

28、ng merged. However, in Australia, e*cept for the notable increase of taking off and landing fee, it also faces other industry charging problems. These charges are under strict review. Besides, the carbon emission trade plan of the European Union is under discussion, Australia may provide other plans

29、. Although there is no such carbon emission plan in Australia, since 2012, government of Australia began to levy smoke and dust emission ta*, and the cost is higher than the average level in the world. In addition to this, in 2012, government of Australia increased the departure ta* of passengers at

30、 airport with about 17%, which means every passenger who files international flights has to pay $58 fi*ed fee.Nand et al,2013) The increase of the fee evidently influences the employment and economic development. 2.3 The industry environmentMichael Porter created the Porters Five Forces framework, i

31、t is an effective tool to evaluate the profit potential and attractiveness of different industries. It helps people to identify the various of petition sources within an industry or a sector. This part will adopt Porters Five Forces to analyze the civil aviation industry environment.Bargaining power

32、 of suppliers: MediumQantashas only two airplane suppliers, Boeing and Airbus, which are also the only two largest manufacturers in the world. Fuel of Qantas Airways is provided by oil panies such as Shell and British Petroleum(BP). In terms of the information technology supplier, IT giants like IBM

33、 and NCR provide Qantas with high class operation, automation, ordering and logistics systems. (Mak & Chan, 2006)Hotels, catering services and road transport services are also offered to passengers as well as the crew members at different flight destinations. All in all, in order to keep normal oper

34、ation and achieve the petitive edge, Qantas shouldkeep a good relationship with there suppliers Bargaining power of buyers: MediumMain buyers ofcivil flights include business travelers, holiday providers, leisure travelers, budget travelers, travel agents and so on. The consumer demands and e*pectat

35、ions are keeping growing in recent year. Their demands bee more diverse, however most of the buys wish airline services deserve every dollar they pay. Besides, the development of technology bring more convenience for the firms and individuals to decline buyer power.Threat of substitutes: LowSome oth

36、ers means of transportation including railway, buses, shipsare the direct substitutes of airplanes for passengers who do not care much about the travel speed. Indirect substitutes contain video conferencing, online chatting and Voice over Internet Phone has developed fastly and widely spread. Theref

37、ore the power of substitutes are increasing because they could help people save time and money on long-distance flying. Threat of entrants: LowAs the civil airline industry required e*tremely high fi*ed initial costs and is regulated very strictly by the governments, the entry barrier of the civil a

38、viation industry is very high. In addition to this, fierce petition and the dominant position of the e*isting airline giants have created large chances of retaliation.Rivalries: HighQantasAirways faces domestic petition from Virgin Australia directly. Besides, some low fare airlines such as Malaysia

39、 Airline and China Southern Airline bring Qantas petition threats internationally. (Hanlon,2007) It is high time thatQantaskeeps revitalizingthe product and service offerings so as to maintain its petitive advantage and realize sustainable development in civil aviation industry. 2.4 The petitive env

40、ironmentNot long ago, the IATA released the worlds top airlines of international passenger and cargo traffic ranking of 2012, the top rank for cargo was Lufthansa with a total volume of 7.15 billion ton-kilometers, while the British Aviation occupied the first position of the passenger volume with 9

41、5.47 billion passenger- kilometers. QantasAirways was ranked the 10th in the list. Nand et al,2013) Besides that,Jetstar replaced its parent pany Qantas to operate the New Zealand domestic routes since June.In the past century, Qantas Airways has always been the chief cornerstone of Australian civil

42、 aviation industry, Ansett Australia, which is no longer in e*istence, was once the biggest petitor of Qantas. Today, no matter in domestic market or international market, the biggest rivalry of Qantas is Virgin Australia. (Hanlon,2007) Virgin Australia is gradually e*panding its international busin

43、ess. Unlike Qantass strategy, Virgin Australia allows other airline panies to won its stock rights, therefore, the interest of Virgin Australia links closely with many other airline panies. Currently, Virgin Australia has two legal entities that are domestic service and international service, 49& st

44、ock right in international services is owned by foreign panies. New Zealand Airway has 19.9% stock rights, Etihad Airways and Singapore Airlines own 10% stock rights respectively. (Whyte et al, 2012) Moreover, Virgin was approved to merger Skywest Airlines and purchase 60% stock rights of Tiger Airw

45、ays Australia. (Drum, 2013) The success of Virgin Australia produces challenges for Qantas, but also set an e*cellent e*ample of strategic management.2.5 Opportunities and threatsAt present, the international routes have large growth space. With the growing number of foreign tourism in Australia and

46、 the global economy recovery, Qantas will have more market opportunities. However, in order to cope with petition from other airlines, Qantasneeds to further improve its quality of service domestically and globally. Balobaba et al,2009At the same time, the e*ternal environment of the civil aviation

47、industry is not ideal. Fuel prices, the Australian dollar e*change rate fluctuations, the EU emissions trading system are the key factors that affect the Qantas ine level.3. Internal Analysis3.1 Tangible and intangible resourcesAs a giant pany in civil aviation industry, Qantas own numerous resource

48、s. As for the tangible resources of Qantas, in order to keep Qantas as one of the most professional airlines in the world, it keeps investment in purchasing new planes, improving interior facilities and infrastructure construction. Currently, Qantas has ordered twenty Airbus A380 planes, over one hu

49、ndred Boeing 787 and 737-800. The Group fleet numbered 256 aircraft till 1st September 2010) and the pany hires around 32,500 people around the world. For the full year ended 30 June 2010, Qantas reported an Underlying Profit . Before Ta* of $377 million. Net profit after ta* was $116 million.In ter

50、ms of the intangible resources, Qantas pays much attention to brand building and munity investment. Share the Australian spirit is the propaganda Australian heroes, promoting humanistic care, the pursuit of dreams and future for the purpose of a series of programs and activities. (Sarina & Lansbury,

51、2013)Qantas staff actively participate in volunteer activities of the public welfare undertakings, and through the changes, Workplace Giving program for charitable Giving. (Cowper-Smith& de Grosbois, 2011)From planting activities, waste recycling to energy saving plan, sharing the Qantas how to redu

52、ce the environmental impact contribution and efforts. Support of Australias major cultural institutions is the Qantas play an important role. petitive spirit is one of Australias cultural essence. Qantas is very proud as being a sponsor of many sports events and institutions.3.2 Capabilities identif

53、icationInternational Air Transport Association (IATA) data for 2009 showed Qantas was the worlds 11thlargest airline in terms of Revenue Passenger Kilometers (RPKs). Qantas Group airlines offer services to 182 destinations in 44 countries, with 59 in Australia and 123 in other countries (including t

54、hose operated by code share partner airlines) and carried 41 million passengers in 2008/09. (Qantas, 2013) Every week, Qantas operates around 2000 flights to fly around 49 cities and areas in Australia. Qantas Airways Catering Group is the whole capital subsidiary pany of Qantas Airways Limited, mai

55、nly operating two types of catering business: Q Catering and Snap Fresh. Currently Q Catering has set up centers in si* Australian airports. Snap Fresh is an advanced food central manufacturer in Queensland, e*cept for offering airline meals for airline panies, its products are also directly sold in

56、 non-aviation markets. (Qantas, 2013) Qantas Freight pany uses aircraft of Qantas and Jetstar in international routes and three rent Boeing 747-400F airplanes to provide international transport services.In addition, Qantas freight with the Los Angeles airport in Perth, Melbourne Brisbane Sydney also

57、 has their own ground facilities, which includes the Australias biggest freight station, in addition to dealing with Qantas flight with Jetstar, Qantas freight also for many other airlines provide freight services. (Qantas, 2013) 3.3 Core petency analysisQantas is an internationally renowned airline

58、 brand. It has long enjoyed great brand equity and passenger loyalty. Qantas links Australia to most important destinations around the world. Besides, Qantas has an e*cellent management team.(Franke, 2007) With over 90 years of e*perience, now Qantas is e*pertise in both domestic and international f

59、lights, both a full service airline (Qantas) and a low cost carrier (Jetstar)and all levels of passengers (premium seg-ment, economic segment, and budget segment). (Qantas, 2013) 3.4 Value chain AnalysisThe value chain of a pany is a tool to present the panys strategy, history, management mode and p

60、otential economics of the activities. (Porter & Kramer, 2006)Value chain analysis of Qantas Airways begins with the inbound logistics, as a high cost fuel supply and relatively high cost aircraft supply, it also embraces the authority contracts of airports. The landing and taking-off operation is pl