Use the Porter’s generic business-level strategy framework to identify and justify thegeneric business-level strategy for:a) Qantas (mainline) business unit; andb) Jetstar business unit.Some guidance:i) Understand the Porter’s generic strategy framework.ii) Conduct research into Qantas mainline & Jetstar to identify how they compete toachieve a competitive advantage; and whether they target a broad or a narrowmarket.iii) Determine and classify Qantas mainline’s and Jetstar’s generic business levelstrategy. Justify.
Question
Use the Porter’s generic business-level strategy framework to identify and justify thegeneric business-level strategy for:a) Qantas (mainline) business unit; andb) Jetstar business unit.Some guidance:i) Understand the Porter’s generic strategy framework.ii) Conduct research into Qantas mainline & Jetstar to identify how they compete toachieve a competitive advantage; and whether they target a broad or a narrowmarket.iii) Determine and classify Qantas mainline’s and Jetstar’s generic business levelstrategy. Justify.
Solution
Porter's generic strategy framework includes four main strategies: cost leadership, differentiation, cost focus, and differentiation focus. These strategies are used by companies to gain a competitive advantage in the market.
a) Qantas Mainline Business Unit: Qantas Mainline primarily uses a differentiation strategy. This is evident in their focus on providing high-quality services, including premium lounges, in-flight meals, and entertainment. They also have a strong brand reputation for safety and reliability. Qantas targets a broad market, including both business and leisure travelers, but with a focus on the higher end of the market. They justify the higher prices with their superior service and the added value they provide to their customers.
b) Jetstar Business Unit: Jetstar, on the other hand, primarily uses a cost leadership strategy. They aim to offer the lowest possible prices to their customers. They achieve this by minimizing costs wherever possible, for example by charging extra for in-flight meals and luggage. Jetstar targets a broad market of price-sensitive customers, including both leisure and business travelers. Their low-cost strategy is justified by their focus on providing basic, no-frills services at the lowest possible price.
In conclusion, Qantas Mainline and Jetstar use different strategies to achieve a competitive advantage. Qantas uses differentiation to target a higher-end, broad market with superior services, while Jetstar uses cost leadership to target a price-sensitive, broad market with basic, no-frills services.
Similar Questions
Use the team’s SWOT analysis for Qantas from Seminar 1 to provide two strategicrecommendations for Qantas mainline business unit (use your imagination and be creative).For each strategic recommendation:a) Identify and discuss the strategy.Some guidance:i) Understand the “Who, What & How” questions, and Porter’s generic strategyframework. Note: Strategies shape the long-term direction of the whole firm andshould help determine how they should position themselves in the market.ii) Refer to the generic strategy of Qantas mainline business unit from Q1 anddetermine who are Qantas’ target customers, what are the customers’ needs to besatisfied and how to use Qantas’ capabilities and core competencies to developflight services to satisfy targeted customers’ needs to achieve competitiveadvantage.iii) Determine and explain the strategic recommendations.b) Justify the appropriateness of the strategic recommendations using the SAFeframework.Some guidance:i) Understand the SAFe and SWOT frameworks.ii) Suitability and Feasibility assessments – refer to the key opportunities, threats,strengths and weaknesses identified in Seminar 1.• Acceptability assessments - identify two major stakeholders of Qantas(excluding shareholders) and determine their expectations/interests.iii) Determine and explain how the strategic recommendations:• Exploit the key opportunities and neutralise threats identified in Seminar 1;• Capitalise on the key strengths (capabilities and core competencies); and willnot be impeded by weaknesses identified in Seminar 1.• Will be acceptable to their key stakeholders.
21.What is one generic strategy of Porter's? A. Product range B. Competition focus C. Differentiation D. Pricing strategies
level of strategy focuses on the overall scope and direction of the companyAnswer areaCorporate level strategyFunctional level strategyOperational level strategyBusiness level strategy
The level of strategy concerned with the question ‘What business are we in?’ is known as:Question 8Answera.business-level strategyb.a competitive planc.global strategyd.functional-level strategye.corporate-level strategy
The type of corporate-level strategy that relates to the organisation’s mix of strategic business units and product lines that fit together in a way as to provide the organisation with synergy and competitive advantage is called:Question 2Answera.portfolio strategyb.global strategyc.transnational strategyd.market design strategye.BCG Matrix
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.