This report aims to identify current strategy adopted by Qantas and future recommendations through the evaluation of business development of the Australian-based airline.
Both the external and the internal analysis have helped to reflect the competence of Qantas and its weaknesses as well. However, opportunities still can be found to ensure better solutions to be worked out to prevent from being damaged by threats. Currently, Qantas has mainly utilized differentiation strategy to ensure greater value can be added when dealing with business relations.
Qantas should focus on making efforts three aspects of engaging in use IS strategy, improving HRM practice and actively finding worldwide’s alliance opportunities.
- Good quality employees;
- Safe and reliable aircraft;
- Influential Leadership;
- Good service quality;
- Talented marketing & sales staffs;
- IT engagements;
- Poor HRM;
- Lack of well-trained management positions;
- Potential cooperation opportunities among rivals;
- Ongoing development within the IT age;
- Generation Y will be the source to generate new ideas.
- More opportunities can be found through the rapid development within the tourism industry;
- More talents can be found in the cross-cultural background;
- The competition come from both existing and potential rivals;
- Unexpected financial crisis and the global oil price;
2.7 The Current Strategy
The current strategy of Qantas is the differentiation strategy to add greater value to better benefit passengers. Teece (2010) shown that differentiation is one of the three generic business strategies within the porter’s theory. No matter how the company has developed in the past or what achievements have been attained, it is essential to make changes since the external environment will not be unchangeable. For a successful airline, the long-term relationship with relevant stakeholders should depend on the real understanding of differences of them to ensure appropriate approaches can be worked out to satisfy them (Hu, Xia & Jiang, 2013). In such scenario, differentiation can be regarded as an effective approach to ensure diverse needs can be met and ensure potential requirements to be predicted accurately. In the long-term run, value can be created through making differentiations to satisfy changeable needs of them.
In order to better develop and survive in the complex global airline industry, new strategies need to be made at the business level, corporate level and international level.
1) It is essential to focus on integrating Information System (IS) strategy to its current business strategy to satisfy target customers and to improve its competition.
2) It is essential to improve the HRM to let internal management ability can be enhanced to better manage different employees.
3) It is essential for Qantas to actively find those competitive alliance partners to share available resources to realize the sustainable development.