International Airline Marketing and Strategic Management

Question: Discuss about the International Airline Marketing and Strategic Management. Answer: Introduction Quantas Airways is the largest flag carrier airline of Australia. It is considered as the largest airline by fleet size. The company has a 65% of the market share in Australia. It is founded in the year 1920 and provides international flight passengers in 1935. It operates different subsidiaries such as Jetconnect that provides services between New Zealand and Australia. It also owns Jetstar Airways which is a low cost airline (New Horizons, 2016). This report emphasizes on the strategies adopted by the Qantas Airways for the purpose of business growth. It will be analysed with the help of Ansoff Matrix. Ansoff Growth Matrix Ansoff growth matrix is a marketing tool used to determine the strategy adopted by the company for the purpose of growth in the market and development of new products in order to grab a large market share. It is a matrix that provides information related to the growth of a company in terms of product and markets. In this matrix the growth of the company depends on the fact that the company wants to market new or existing products in existing and new markets. This matrix provides information related to four different growth strategies namely market penetration, diversification, market development and product development (Shaw, 2012). Qantas Growth Strategies The Qantas has launched a new low cost airline Jetstar airline which caters to the market of New Zealand and Asia Pacific markets. The company has also entered new market i.e. European markets by establishing a partnership with Emirates. This facilitates in catering to the new markets and result in the acceleration of the market growth. The company has invested in the research and development to provide new products to the existing and new customers. The company has renewed its lounges, fleet, infrastructure and technology in order to meet the changing demands of the customers. Qantas has made investment in new products in order to attract more customers in the existing market. It has achieved a patent for self service luggage processing stations and self service passengers checks at each station. The company provides new deals to attract customers from new markets (Solomon, et al. 2013). The company has adopted product development strategy by augmenting its products with other services in order to attract more customers from the existing market (Robbins, et al. 2014). Introduction of the Jetstar is the market development strategy used by the company to enter new markets with existing product. The company focuses on providing high level of customer service in order to remain in the market and gain a competitive edge over other players in the market. For this purpose, the company provides excellent inflight services at low cost in order to attract more number of customers. Existing Products New Products Existing Market Market Penetration Product Development: Augmented Products New Market Market Development: Jetstar Diversification References New Horizons. 2016. Qantas Annual Report. [Online]. Available at: https://www.qantas.com.au/infodetail/about/corporateGovernance/2016AnnualReport.pdf [Accessed on: 16 January 2017]. Robbins, S.P. et al. 2014. Management. Pearson Australia. Shaw, M.S. 2012. Airline Marketing and Management. Ashgate Publishing. Solomon, M. et al. 2013. Marketing: Real People, Real Choices. Pearson Higher Education AU.