The Impact Of Globalization On Qantas Airlines Marketing Strategy

1769 words - 7 pages

Globalisation is having a significant impact on marketing. This is because a business, by distributing itself across international borders makes its product more readily available to international customers and creates employment opportunities in the country it has moved to. To understand the impacts, globalisation, marketing (particularly market segmentation), global marketing strategies and general history of Qantas need to be examined.

Qantas is the oldest airline in the English speaking world. It was founded by the three aviation pioneers Hudson Fysh, Paul McGinness and Fergus McMaster as the Queensland and Northern Territory Aerial Service in 1920 and has grown from one aircraft which offered air taxi services and joyrides to a vast, complex fleet operating all over the world. By 1930 Qantas’ air routes had expanded to reach up to North Eastern Australia and was later purchased in 1947 by the Australian Federal Government.

Globalisation is the process where a business will expand and operate over international boundaries. In doing this, wider communication with the world can be established, the potential to explore new markets can occur and employment opportunities can be created for residents of the countries in which International businesses are situated. Qantas has entered the global airline market successfully since 1958 when it offered the first “round the world” air service, in 1999 joined the Oneworld Alliance which consists of eight of the world’s top airlines (Aer Lingus, American Airlines, British Airways, Cathay Pacific, Finnair, Iberia and Lan Chile). When travelling to Europe, we experienced globalisation when purchasing airline tickets through Qantas’ website which were later discovered to be affiliated with Cathay Pacific Airways. Travelling from Rome to Hong Kong it was expected we’d fly on a Qantas jet but in fact we flew on a Cathay Pacific plane which had multiple flight numbers due to globalisation through the Oneworld alliance.

Qantas’ situational analysis (SWOT) is the first step in the marketing process whereby the strengths, weaknesses, opportunities and threats of the airline are identified. The airline’s strengths include: Being part of the Oneworld alliance, having a high safety record, being a globally recognised airline through the use of branding and the flying kangaroo logo, purchasing the latest aircraft thus updating technology and staying level with international competitors and the final strong success of Qantas has come by operating out of some of the world’s major air travel hubs such as Los Angeles International Airport, London’s Heathrow Airport, Singapore’s Changi Airport and Sydney Kingsford Smith International providing an excellent range of customers.

Qantas’ main weaknesses come from the high risk nature of airlines (possibility of crashes and large scale incidents), the complexity of the aircraft they buy which could lead to costs of re-training pilots to fly that particular...

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