Qantas Strategic Analysis Essay

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Qantas Airways Ltd is Australia's national carrier and a dominant player on the Australian market and specifically ranks ninth in global (Air transportation, 2013). Qantas has an integrated global marketing strategy based on a consistent brand positioning across all markets with excellent brand image in safety record and reputation in the industry as the provider of on-time quality air travelling services to its passengers (Qantas On-Time Performance, 2014). However, the airline has experienced a tough business environment due to interaction between external and internal environment forces that lead to number of strategic issues, therefore the purpose of the report was to critically analyse the key strategy issues through strategic analysis tool like SWOT and PESTLE.…show more content…
• In the long-haul market, Qantas faces competition from local operators in most geographical areas such as Middle East, China and India. Whereas in the medium-haul market, low-cost carriers such as AirAsia, Tiger and others have established strong market positions and continue to grow.
• Fluctuating fuel price due to many factors that are beyond the control of companies negatively influence the profitability of Qantas and its competitiveness globally making airfares stalling fleet orders (Euromonitor, 2014).

Together, key factors that need to be consider include PESTLE analysis that influences the airline industry is shown below.
Political and legal factors Airlines operate in a political environment that is strictly regulated where government intervention over the performance of the company is necessary from time to time.

Economic factors Qantas has faced the heat of lower demand that caused in declining revenue and huge losses mainly due to declining economic performance of the Australian economy

Social and demographic

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