Qantas is the acronym of “Queensland and Northern Territory Aerial Services Limited”. It is the second oldest and most famous airline of the world. It was founded in Queensland in 1920, and worked hard to become the Australis’s biggest international and domestic airline. Soon, it recognized as popular and one of the leading long and short distance carriers of the world, with having pioneered services across Australia and to Europe, and North America. Qantas Group holds many subsidiary businesses and employs around 32,500 workers. It is successful in providing its services to more than 44 countries by having the large network spanning over 182 destinations in Asia, Australia, Americas, Pacific, Europe, Africa and Middle East. It has many brands like Qantas Link, Qantas, and Jet Star (Qantas, 2018).
Qantas is successful because it always undertake the formal marketing planning and marketing auditing for setting the targets and objectives on the realistic assessment basis of operating environment, the market and organization’s resources. This is also very important for determining the marketing objectives and strategies. BCG matrix provides the assistance to the company in this regard, as it is necessary to evaluate the strategic position of the Group’s product portfolio. The matrix involves four quadrants; cash cow, starts, question mark and dogs, and analyze the products among two main aspects; market share and market growth rate (Stern, 2018). The BCG matrix of Qantas is as follows;
Cash Cows
These are the products which are the major source of revenue and generation of cash. These have the high market share and low level of growth rate, which means they have the high consumer demand and company needs to satisfy them in order to be more profitable. Qantas Domestic is the cash cow for the Qantas, because locals of Australia prefer Qantas more for domestic flights as compare to any other airlines (Pamatmat, 2015).
Stars
These items have the high market growth and market share, but still not the major source of income. Consistency, effective decisions, and proper implementations of the strategies might help in turning them into cash cows. Investment has to be made for turning it into cash cows, or else it will turn into question mark. The Jet Star Airways is the star product for Qantas, as it provide best services with low rates, and have relatively high demand. But still needs investment to increase the market share (Qantas strategy, 2011).
Question Marks
The items in this quadrant have the low percentage of market share but high growth rate. These are considered as possessing the worst characteristics of cash because of high demand of investment and generating low returns in terms of sales, as they do not have enough market share. If companies do not focus on them, these items will absorb the investment and turn into dogs. Qantas International is categorized as the Cash cow for the company, as it requires lots of cash and management attention. There are many other competitors who are providing better services in low rates (Pamatmat, 2015).
Dogs
This quadrant in the BCG matrix known as dogs have the low percentage of market share and low level of market growth rate. Companies should avoid or minimize the “dogs” products to be more profitable and get the better return. The company must look forward for the rescue plans, so that they could deliver cash or else should be liquidated. Australian Airline was the dog brand for Qantas, because of its high investment, and low returns. It became the burden on the company, and for which it needed to be shut down (Qantas Strategy, 2011).
References
Stern, C. 2018. BCG matrix. [Online], Available at: https://www.12manage.com/methods_bcgmatrix.html, [Accessed on: 6th September, 2018].
Pamatmat, B. 2015. Marketing Qantas. [Online], Available at: https://www.linkedin.com/pulse/marketing-qantas-ben-pamatmat, [Accessed on: 6th September, 2018].
Qantas, 2018. About US. [Online], Available at: https://www.qantas.com/us/en.html, [Accessed on: 6th September, 2018].
Qantas Strategy, 2011. Qantas Airways. [Online], Available at: http://investor.qantas.com/FormBuilder/_Resource/_module/doLLG5ufYkCyEPjF1tpgyw/file/presentations/qantas-strategy-day-presentation-2011.pdf, [Accessed on: 6th September, 2018].
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