The extra costs in labour, occupancy, utilities and financing are decreased by the company’s Cost of Doing Business (CODB) which includes introducing product canners and eliminating administrative tasks. To motivate increasing in spend, balances and lots of cards on issue, the company invested $1. 8 million in its Financial Services business, such as 21 new cardholder events. 6. SWOT Analysis
To create, confirm, or regulate the Qantas’ specific business model which will best match its resources and capabilities and the demands of the environment, the analysis of Qantas’ internal strengths, weakness and external opportunities, threats is compulsory. However, this kind of analysis and comparison is generally referred to as a SWOT analysis (Hill & Jones, 2010). The successful operation of Qantas cannot depart from its five advantages. Single type of airplane is the main recipe of low-cost operation.
Swot analysis Essay Example
Due to arrive a retrenchment on maintenance and training, all Qantas’ planes are B737s and also plan to purchase 53 B737s from Boeing later. Qantas have flexible negotiation, favorable terms for terminal access which even located at the Australia’s main airport, such as Sydney, Melbourne and Brisbane. It is the second merit– low-cost terminal. Moreover because near ninety per cent of Qantas’ fares are booked via internet, it contributes to the ticketless distribution. Flexible working practices are another advantages should be mentioned.
For example, the aircraft can be cleaned by cabin crew, thereby decreasing the difference between ground and cabin crews. The last superiority of Qantas is it has built its own service culture and a relaxed working environment. The flexibility, teamwork and open communications are the leitmotiv of its culture. Furthermore, the casual uniforms of the staff and the no-tie policy are appropriate examples to illustrate the relaxed working environment in the Qantas (Stephane & Peter). However, the disadvantages of the Qantas also cannot be ignored.
For instance, the ability of the low-cost airline was restricted drastically by the lack of a real business class and of an airport lounge at Canberra (2004). The comparison of external opportunities and threats is illustrated in the flowing table Opportunities1. International development: starting international services to New Zealand, Fiji, Vanuatu and Cook Islands after January 2005. 2. Diversification: selling different holiday packages. 3. Alliance: making code-sharing agreements with United Airlines and similar agreements with Virgin Atlantic in 2004. Threats1. Profits under pressure: Unprofitable routes: because of intense competition between Qantas and JetStar; Forced increasing charges.
Turbulence on board: because of unadvisable management among staffs. Source: adapted from Tywoniak,Stephane & Galvin,Peter. Qantas: the high flyer of the airline industry. Therefore, the Qantas’ strategies can be identified by the SWOT analysis to develop external opportunities, resist threats, establish and protect company strengths, and eliminate weaknesses. Strengthening the core business Employees—negative It can affect employee numbers by implementing cost of doing business (CODB) reductions which tried to introduce the product scanners. Therefore, the expected increasing costs in employees can be reduced.