About the company
The Australian Airlines based industry is highly competitive in nature and is heading towards more aggressive price based wars which have led to the increase in the competition levels. The two largest players of the airlines industry of Australia are mainly Qantas Airways and Virgin Airlines. The organizations have thereby taken part in highly aggressive price based wars in order to attract the customers in an effective manner. The price based competition has been able to affect the operations of the industry in a huge manner. The airfares have been slashed down based on the effective price based wars that are going on between the top organizations (Holt 2016). The company which has been considered for the analysis in this report is Qantas Airways which is considered to be flagship airlines based organization of Australia.
Qantas Airways is considered to be the flagship airlines based organization of Australia which has been able to provide the best levels of services to the customers. The company has been able to develop the topmost position based on the fleet size that has is maintained in the country. The organization was established in the year 1920 and its international operations had started in 1935. Qantas Airways is mainly based in Sydney and has acquired more than 60% of the total shares in Australian airlines industry. The different subsidiary organizations of Qantas operate in different parts of the world and the international operations are thereby conducted in an effective way (Qantas.com 2018).
The major positive aspect of operations of Qantas Airways in the industry is based on the customer centric approach that has been taken by the company. The customers of the company have always been provided with utmost levels of priority in order to fulfil their needs effectively. The needs of customers have been kept at the top of all other operations which of Qantas in the airlines industry. The transport organizations always need to consider the various needs of people in order to develop the effective operations. The solutions which have thereby been developed by the company based on specific needs of the consumers will prove to be the most effective for proper operations of Qantas Airways (Hussain 2016).
The organization is thereby able to develop innovative solutions to the issues which are thereby being faced by the customers. The major priority of the company is thereby based on the ways by which customers are satisfied with the help of the products which are offered to them. Qantas has thereby been able to increase its levels of innovation with the help of proper satisfaction of the customers and providing them with effective services (Keiningham et al. 2014).
One aspect of the company which it excels at
The data driven strategy which has been implemented by Qantas Airways is another major positive aspect of its operations in the airlines based industry. The ways by which Qantas is able to manage the large volumes of data are based on the approach that has been taken by the company. The executive brand manager of Qantas Airways Stephanie Tully has played a major role in the proper implementation of the CMO Qantas Loyalty named strategy. The company has been able to manage its marketing based activities with the help of proper management of large amounts of data which is available (Marketing Magazine 2018).
Marketing plays an important role in the success of organizational operations in the industry. Data which is used by the organizations is thereby the most important part of the ways by which customers of the company have been satisfied effectively. Data has been able to play an important role even in the marketing activities which are undertaken at the top levels of management. The process by which the organization is able to maintain huge amounts of data is an important part of the products and services that are provided to them. The data is thereby required by the company in order to formulate effective strategies in order to operate in the industry in a profitable manner (Kumudha and Bhunia 2016).
The effectiveness of the value chain of Qantas Airways has been increased by proper integration of data. The frequent flyer based program is quite large in Australia and Qantas thereby aims at maintaining the data of these customers in order to analyse their choices and preferences. The usage of data thereby plays the most important role in the ways by which the modern organizations can operate in an effective manner in the industry. The process of data engagement is thereby an important part of successful operations of Qantas Airways. The data driven based strategy can thereby be considered as another major positive effect of the operations of Qantas Airways (Lin 2015).
The major aspect of Qantas Airways which has been criticised in the airlines industry is based on the financial issues that were faced by the company. The organization has faced major issues based on the wages which are to be provided to the employees. The costs based on the operations of Qantas is another major issues which has thereby been faced by the company in the aviation industry of Australia. The high costs have thereby proven to be the key to issues which have been faced by the company in the industry of its operations (James Massola 2018).
Another aspect of the company which it excels at
The high costs are mainly based on the reaction which is provided to the market related to the 252 million Dollars of losses in its operations. The organization has been able to play a key role in the ways by which domestic services are provided to the customers. Qantas has also not been able to provide effective competition to the companies like Emirates and Etihad due to the lack of proper financial resources. The cost based structure and wage structure of Qantas has thereby been under huge criticism in the airlines based industry of Australia (Wang, So and Sparks 2017).
The cost structure which has thereby been developed by the company has been able to provide effective levels of challenges to the operations of Qantas Airways. The organization has been able to operate in a profitable manner in its domestic operations, however, the international operations were affected in an adverse manner. The company has been criticised due to the financial management based activities and management abilities is an important part of the challenges which have been faced in the industry (Lin and Vlachos 2018).
Conclusion
The report can be concluded by stating that the positive aspects of the business operations of Qantas Airways are related to the customer first based strategy and the data driven strategy. These aspects have been able to provide the company with huge success in the aviation industry of Australia. The company has however faced huge number of challenges based on the negative aspect related to the financial management related issues of the company. The proper management of these issues can thereby play a major role in the proper operations and profitability of Qantas Airways.
Recommendations – The major recommendations that are provided to the company is based on managing the financial strategies in an effective manner in order to maintain its position in the industry. The global reputation and image of the brand can thereby be maintained with the help of proper management of customers and various financial issues which are based by Qantas Airways.
References
Holt, T.B., 2016. Mid Morning Concurrent Sessions: Consumer Perceptions in Aviation: Presentation: From Customer Service to Self Service; the Decline of Passenger Satisfaction.
Hussain, R., 2016. The mediating role of customer satisfaction: evidence from the airline industry. Asia Pacific Journal of Marketing and Logistics, 28(2), pp.234-255.
James Massola, H. 2018. High costs and wages key to Qantas’ problems, says Deputy PM Warren Truss. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/politics/federal/high-costs-and-wages-key-to-qantas-problems-says-deputy-pm-warren-truss-20140227-33jlw.html [Accessed 3 Sep. 2018].
Keiningham, T.L., Morgeson III, F.V., Aksoy, L. and Williams, L., 2014. Service failure severity, customer satisfaction, and market share: An examination of the airline industry. Journal of Service Research, 17(4), pp.415-431.
Kumudha, A. and Bhunia, A., 2016. Customer relationship management and marketing practices in airlines industry-An empirical study. IJAR, 2(11), pp.39-43.
Lin, Y.H., 2015. Innovative brand experience’s influence on brand equity and brand satisfaction. Journal of Business Research, 68(11), pp.2254-2259.
Lin, Z. and Vlachos, I., 2018. An advanced analytical framework for improving customer satisfaction: A case of air passengers. Transportation Research Part E: Logistics and Transportation Review, 114, pp.185-195.
Marketing Magazine 2018. Qantas CMO on data-driven strategy and to manage large volumes. [online] Marketing Magazine. Available at: https://www.marketingmag.com.au/hubs-c/cmo-qantas-interview/ [Accessed 3 Sep. 2018].
Qantas.com 2018. Fly with one of the world’s most experienced airlines | Qantas IN. [online] Qantas.com. Available at: https://www.qantas.com/in/en.html [Accessed 3 Sep. 2018].
Wang, Y., So, K.K.F. and Sparks, B.A., 2017. Technology readiness and customer satisfaction with travel technologies: A cross-country investigation. Journal of Travel Research, 56(5), pp.563-577.
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