Qantas Cost Leadership Case Study
Cost leadership refers to the strategies to create goods or services at the lowest possible cost whilst they are still acceptable to customers. By reducing the costs of manufacture and distribution, a business will be able to increase an advantage over competitors. Qantas main costs …show more content…
Qantas has recently cut back on some services to destinations to reduce costs.
Technology the adoption and submission of advances in technology directly impact on production costs, most commonly through the decrease in labour costs. Qantas adopted latest computer technology for on line booking and on line ticketing; additional recently it moved to on line check in thus eliminating the need for Qantas staff to be obtainable to interface the customer.
Waste minimisation in 2011 Qantas achieved electrical energy, water and waste reductions of 8, 19 and 21% through a variety of measures such as recycling, energy well-organized lighting, water saving devices, energy efficient materials and sustainable design. In 2010 Qantas began diverting its wide-ranging waste in Sydney to an advanced waste conduct …show more content…
Due to these days, there are many low cost airways appear worldwide. Thus, the firms that can tender the cheaper price will be gain the customers. Jetstar want to reach the lower price than others fare airlines so the company designs to adapt another strategy such as partnership strategy to transaction with the main competitors. For instance, according to Business Traveller Asia-Pacific (2010), Alan Joyce state that ‘‘Jetstar and AirAsia offer unmatched reach in the Asia-Pacific region, with more routes and lower fares than their main competitors, and this new alliance will enable them to maximise that scale.” “Figure 3 is image of Tony Fernandes, Alan Joyce and Bruce Buchanan share a laugh at the January 6 launch of the Jetstar - AirAsia alliance”. What is more, it is true that low price airline can draw travellers who have small budget, but it is also true that cheap price now is not sufficient to compete with others. In present years, almost aviations industries have measured about how to the firms receiving the customer earlier than competitors. Furthermore, Jetstar recognizes about low price with quick sale so the firm tries to produce new promotion to attract and increase the customers quickly than another firm. For example, refer to Kelly (2006); he mentioned that Jetstar will offer A $25 to travel