The Impact of Globalization on Qantas Airlines Marketing Strategy

Globalization has a major impact on marketing. This is because companies make their products more accessible to overseas customers through cross-border distribution and to create employment in the country where they emigrate. In order to understand its impact, it is necessary to consider globalization, marketing (especially market segmentation), global marketing strategy, and the general history of Qantas. Qantas is the oldest airline in the English-speaking world.

In Australia, Qantas Airways, Virgin Blue, Tiger Airways, and Jetstar occupy the majority share in the domestic market (Dixon, 2006). Australian Airlines called "Flying Kangaroo" is the largest global airline in Australia and is a Chartered member of "One World Alliance". Qantas operates "Qantas Link" in Japan and operates 2,000 regional flights per week. They also operate low fare airlines Jetstar Airways and Qantas Freight (Qantas Airways, 2012). The application of PESTLE analysis to the aviation industry will help identify environmental impacts by classifying them into six categories, political, economic, social, technical, legal and environmental ( Issa, 2010). Future trends and change requests based on these trends can be identified through this analysis tool (Johnson, et al, 2008).

The first is industry competition. In the past, the Australian aviation market was regulated by the government, but in 1990 it became deregulated, Qantas bought a local Australian airline and became a market leader. (Flight Global, 2010) However, there are many competitors in the aviation industry that may compete with airlines after deregulation. Therefore, the industry competes fiercely with low risk, high profitability and high cost, and the aviation industry faces major problems such as economic crisis. (Investopedia, 2010) Therefore, Qantas faces a high level of industry competition in the aviation industry, especially international airlines. For example, AirAsia is a low cost airline that fly to Southeast Asia and Australia. (Thomas, 2010) As a result, there are many competitors in the market today, but there is a possibility that it will continue to increase in the future.

Qantas occupies a high position in the international aviation market rather than the domestic market. There are many airlines around the world. They are competitors against each other. Qantas is faced with intense competition with other airlines. It is very difficult for Qantas to increase sales to concentrate on its market segment. Qantas always strives to provide customers with the right products and services. Qantas met their expectations and needs. That is why Qantas follows the problem of market segmentation. Segments can increase customers. Qantas has an effective marketing mix strategy to promote product service. Each organization follows the marketing mix strategy. As an airline, Qantas always wants to promote their business.