Marketing assignment essay on: SWOT ANALYSIS Of  Qantas

 Introduction

Qantas has been ranked the second oldest airline across the globe with its success stories and reputation and the airline was founded in 1920 in Queensland, Australia. It became the long distance carrier in the world when it spanned its services from Australia to North America and Europe. The number of employee base which Qantas has is around 32,500 employees and its extensive network across the globe provides services to 44 nations with total number of 182 destinations in the world. The main partners of Qantas are in countries like Australia, The Pacific, Europe, and The Middle east, Asia, America and Europe.

 The two complimentary airline brands through which Qantas operates its business of carrying passengers are: Qantas and Jetstar. The three segments groups in which Qantas has been divided are:  Marketing, Operations, customer and commercial.

Case Analysis

 The management at Qantas is facing a major threat and can result in the airline going under or failing badly if the state owned Airline Company Etihad is allowed to purchase enough shares of Virgin Australia. This will result in undercutting the profit margins of Qantas on its domestic routes which will cause severe loss to Qantas (Coorey, 2012). The major concern for the chief executive of Qantas Alan Joyce is that if Etihad buys Virgin they would not be able to compete with the state-owned competitor because they have strong financial backing from United Arab Emirates.

 By buying greater share in Virgin Australia Etihad would try to dominate the most profitable routes which would leave Qantas to serve the less profitable routes as per the “quasi universal service obligation”. This would lead Etihad subsidising the domestic business of Virgin and result in weakening of Qantas in domestic market. The share price of Qantas had dropped drastically when it depicted a loss of $450 million in its international routes this financial year. The main reason identified by Qantas for money loss is it being under-cut by state-owned airlines like Singapore airlines, emirates and Etihad.

 To handle this situation it is necessary to do SWOT analysis of Qantas so that by utilising the strengths better opportunities could be developed and the threats and weaknesses could be overcome by Qantas.

SWOT Analysis

 Implications and Actions from SWOT

 From the above SWOT analysis it can be inferred that the strengths of Qantas make it a well respected and an airline which infuses public confidence and it has good selling prospects on the basis of its brand name. Qantas can do so by maintaining corporate sponsorship of the Australian national teams. It should keep competitive pricing structure. The best way would be it should exploit the nationalistic advertising attitude by promoting “I still call Australia home”. The wide service range should be used for catering to serve variety of socio-economic groups and provide one stop shop solution to the holiday makers in the country and should be able to link the regional centres with the state capitals and this can be done by Qantas by advertising a very diverse range of travel facilities, option and services for its domestic customers.

Qantas should cut down the cost of its services which it can do by reduction of 3^rd party contractors through development of efficient in-house and quality services. Qantas should enhance its bargaining power which will give it better control to establish pricing and it should step up the flying destinations and it can so do by advertising flight locations domestic which have been added by exploring untapped markets. The new fleet should be promoted as fuel efficient aircrafts which are environment friendly and it should reschedule flights to reduce number of flights which have more passengers travelling. It should also market the safety records to instil public confidence and industry recognition.

 It should handle its weaknesses by taking actions like it should make the flight conditions and services clearly and increase the prices giving proper justification and the pricing should be competitive. The employees hired should be multi-skilled so that they can handle various issues.

 To tackle the Threats Qantas should try to resolve the concerns very promptly. LCC can be handled by monitoring the new entrants by marketing the strengths and reliability factor of Qantas. The fuel hike can be passed on to passengers by increased ticket pricing. It should do promotion of Internal travelling options in Australia. Qantas can make donations to political parties and lobby the political groups to seek the governmental support.

Alternative 2

GLOBAL CROSSING

In order to set new standards in bandwidth capacity, pricing and technology Global Crossing is committed to create a global information highway through its seamless fibre optic network connecting continents, cities and oceans (Unsupported source type (Report) for source Win98.)Global Crossing was formed in 1997 in order to hold the Pacific Atlantic Crossing and Gary Winnick was its chairman. IN March 1997 Global Crossing announced its plan to lay AC-1. This new Atlantic cable AC-1 follows the route connecting Brookhaven (NY) to Whitesand Bay (western UK) and continues to join Sylt in Germany and returning back to join Brookhaven. The total route distance of the optic fibre is 8,886 miles and has a physical life of 25 years. Each fibre contained in the AC-1 is rated to carry 10Gbps and four pairs in each cable thus making the total capacity of 40 Gbps of the fibre. But with the entry of Internet  and deregulation and many other factors Global crossing needs to decide whether it should lay AC-2 and now it has been acquired by Level 3 Communications in October 2011.

 Porter’s Five Forces Analysis

 IN order to assess the kind and intensity of competition in the telecommunications industry we will do Porter’s Five Forces Analysis for Global Crossing which will be very helpful in finding the competitive forces existing in the market.

 Supplier Power

It has been found that the level of supplier power or influence is medium. The reason being there are numerous suppliers or providers which can supply network equipments, but since Global Crossing like any other company gets committed and constricted to one company once they choose to or start using their product. That is why the power of suppliers is medium because once the networking equipments of one company are installed in the AC-1 fibre optic cable; Global Crossing will have to replace all their equipments if they want to switch their supplier. Moreover any fault in the installed equipment will be done as maintenance by the supplier in future but if they get a new supplier it would not be possible.

 Threat of New Entrants

The barriers for entry of new entrants are very high the reason being the amount of intellectual capital needed for the kind of work done by Global Crossing is very high. In order to accomplish whatever Global crossing is doing the new entrant will need immense physical capital in order to install just the backbone network to become the real-time rival of global crossing. Even more intensive  investment would be required by the new entrant  to be competitive in order to offer a whole range of products with all the networking options as done by Global crossing. Moreover Global Crossings has the advantage of large customer base as well as network accessibility.

Bargaining Power of Buyers

The bargaining power of buyers is supposed to be very high because there are numerous substitutes available for the switched services. They are no more the most effectual outlets’ for data and voice transportation. With the advent of Internet ILEC’s have lost the ground and internet offers the rates which are much cheaper than the network rates provided by Global Crossing for voice and data transfer. Since there are many competitors which offer similar kinds of services Global crossing needs to keep their pricing a bit lower in order to attract more customer base.

Threat of Substitutes

 This is the highest threat which is rising day by day with the advent of new technologies in the field of telecommunications. Now the customers have the choice to substitute both the rival organizations in the same industry or they also have the option to switch to the companies in other industries which are capable enough to offer same kind of services. It has become very cheap to make VoIP calls so the customers in huge numbers are switching to VoIP and they are remanding their phone connections. But Global Crossing ahs the advantage as it operates an IP network and on this IP network traffic from varied sources can easily travel which also includes the sources which carry VoIP calls.

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