BRAND AND PRODUCT MANAGEMENT
Introduction
According to Naik, Prasad, and Sethi (2008),
brand management is an important concept
especially when it is applied in the management
of fast moving consumer goods. This paper
discusses brand management in the fast moving
consumer goods within the Australian market.
The paper reports on brand management
exercises of two brands from a single category
of fast moving consumer goods within the
Australian market – foods and beverages. These
brands are the P and N beverages and
Schweppes.
Importance of brand awareness for FMCGs
Amidst competition that prevails in most
industries today, brand awareness remains the
key to the positioning of products in markets
(Nijssen, 1999). Brand management in fast
moving goods is an important subject. This is
because fast moving goods have low profits, and
thus they have to be sold in big quantities. In
addition, most of the fast moving goods are
perishable and have to be marketed fast enough.
There are many companies around the world
manufacturing and distributing fast moving
consumer goods (FMCGs). This means that
competition in the fast moving consumer goods
market is very high. Companies dealing in
FMCGs are forced to develop strong brands so
as to gain strong grounds and position in the
market.
Companies dealing in the manufacture of
perishable goods have to be more proactive in
ensuring that the goods that are processed move
fast on stocks. This is done to avoid losses that
often arise from the expiry of the goods before
they are sold (Keller, 2003).
According to Nijssen (1999), brand awareness
levels of the fast moving goods ensure that they
are quickly purchased in the market. One of the
core tasks of brand managers is to ensure that
they create sufficient awareness of products in
the market. Brand awareness can easily
culminate into brand loyalty.
Brand awareness is created through an array of
activities among them brand salience
(Romaniuk and Sharp, 2004). Research reveals
that marketing managers are striving to raise
product knowledge amongst customers.
This resonates from the fact that brand
awareness helps in ensuring that a firm attains
and retains customers hence remaining more
competitive in the market. The quicker the brand
awareness is executed for FMCGs, the higher
the chances of the goods of a firm to attain
significant sales in the market.
Breadth and depth of brand awareness for P
and N beverages and Supreme foods
P and N beverages are some of the most known
brands in Australia dealing in the manufacture of
beverages and other soft drinks in Australia.
These brands face stiff competition from top
beverage and soft drink companies in Australia
that have stronger and more dominant brands in
the market.
On the other hand, there is a brand within the
beverage industry of Australia that has been in
existence for a very long time. This brand is
called Schweppes and is manufactured by Asahi
Breweries.
This is the company that is synonymous with
most Australians as compared to P and N
beverages. Schweppes is a strong brand in the
Australian market because of various factors
that have promoted its awareness and loyalty
amongst Australian Consumers.
Brand awareness of any product in the market is
built and supported by many factors including
the existence and long periods of consumption
of a product. Other factors for emergent brands
in the market are depended on how the brand is
managed through the creation of brand
awareness and brand salience.
For FMCGs, brand management has to be taken
with more seriousness. This is because of the cut
throat competition that exists in industries
dealing in such goods. Strong brands are often
developed over long periods and is accompanied
by the continued use of products. This leads to
the development of strong tastes and preferences
for the product (Driesener and Romaniuk,
2006).
The breadth and strength of Schweppes
brand in the FMCGs market of Australia
Schweppes is one of the widely consumed
beverages in Australia since it is one of the
highly positioned brands in the Australian
market. Having stayed in the market for a long
time, Schweppes has developed a strong brand
in Australian market. Accessibility and
prominence, which are key components of brand
salience, are argued to have favoured the
development and prevailing strength of the
Schweppes brand in Australia.
As one of the oldest brands to enter the market,
it was easy to develop brand salience for the
Schweppes brand in the country. One of the
supportive factors for this was the ease of access
in the market due to the absence of or minimal
competition in the market. Market access is one
of the precursors of forming a strong force in
familiarizing a brand within the market.
With less competition and a minimal number of
competitor products within the market, it
becomes quite easy to introduce and penetrate a
brand in the market. This case can be attributed
to Schweppes. The prominence of this brand
was built through the name that was very
appealing to consumers from the early times of
the inception of the brand (Pride, 2011).
According to Driesener and Romaniuk (2006),
marketing researchers ascertain that brands are
built using different product aspects. Product
name is just one of these aspects. The brand took
the long-term prominence path by adopting
modern brand building practices.
This was after the company had attained the
short-term prominence. These practices have
been substantial in maintaining the competitive
advantage hence retaining the strength of the
brand in the Australian market and beyond.
Brand diversification was borrowed into
Schweppes by developing different tasted of the
Schweppes brand to ensure a stronger presence
in the market.
The tasted of this product have been diversified
to cater for the differing tastes of consumers in
the market. There are pure drinks and creams
with different tastes like lemon among many
other tastes. There is also lot of diversity in terms
of packaging the product, which catches the
attention and taste of consumers. The firm has
also adopted modern marketing practices such
as the use of the social media.
This helps in the creation of strong consumer
communities for the product that adds the
number of customers. Social media help in the
creation of consumer awareness through forums
that help in addressing the concern of customers.
The brand has gained access into the global
market, which is a pointer to the quality and the
strength of the brand (Schweppes Australia,
2012).
The breadth and strength of P and N
beverages in the Australian market
As compared to Schweppes, P and N brands are
considered to be weaker brands in the Australian
market. Brands that are produced by P and N
include mineral waters, fruit juices, and soft
drinks. The company has not stayed in the
market for a very long time.
This is in comparison with other beverage
companies and brands that came into the
Australian market much earlier like Schweppes
and Coca-Cola. The companies that came into
the market earlier were able to establish
dominant brands that are not easily beatable by
P and N beverage brands (Romaniuk, Sharp and
Ehrenberg, 2007).
P and N was established in the year 1990
compared to Schweppes brands that have been
in the market since 1950s. However, P and N
brands have managed to attain competitiveness
because of the emphasis on brand building. This
has seen its brand remain competitive and even
pose a challenge to the brands like Schweppes,
which have been dominating the market for a
long time.
With a lot of advertising and promotional
campaigns, a high level of brand awareness has
been created about the products helping them to
gain many customers in the market (Australian
Exporters Directory, 2012). Advertising is one
of the best methods of capturing the attention of
customers hence positioning a brand in the
market.
Aggressiveness in advertising helps in hastening
the rate at which customers gain awareness and
attachment to the products or brands in the
market. In addition, diversity has been used in
factoring in the tastes of consumers.
There are diverse products within the P and N
products. This ensures that customers get what
they want in a single brand. This helps in
keeping customers hence building the brand
further (Pieters, Warlop and Wedel, 2002).
Conclusion
Brand management is one of the activities that
are given more attention by firms because it
helps in building brands hence enhancing
marketing. Branding is an expensive affair to
gain. However, once established, it becomes
easy to maintain brands in the market.
Schweppes brand and P and N brands in
Australia have been built through the adoption
of aggressive branding strategies.
Reference List
Australian Exporters Directory, 2012, P & N
Beverages Australia Pty Ltd, viewed on
<http://www.australianexporters.net/companyI
D4967.htm>
Driesener, C and Romaniuk, J., 2006,
“Comparing methods of brand image
measurement,” International Journal of Market
Research, vol. 48, no. 6, pp. 681-698.
Keller, KL 2003, “Brand Synthesis: The
Multidimensionality of Brand
Knowledge,” Journal of Consumer Research,
vol. 9, no. 4, pp. 595-600.
Naik, PA, Prasad, A and Sethi, SP 2008,
“Building Brand Awareness in Dynamic
Oligopoly Markets,” Management Science, vol.
54, no. 1, pp. 129-138.
Nijssen, EJ 1999, “Success factors of line
extensions of fast-moving consumer goods,”
European Journal of Marketing, vol. 33, no. 5/6,
pp. 450-474.
Pieters, R, Warlop, L and Wedel, M 2002,
“Breaking through the clutter: Benefits of
advertisement originality and familiarity for
brand attention and memory,” Management
Science, vol. 48, no. 6, pp. 765-781.
Pride, WM 2011, Marketing principles,
Cengage Learning, South Melbourne, Vic:
Romaniuk, J and Sharp, B 2004,
“Conceptualizing and measuring brand
salience,” Marketing Theory, vol. 4, no. 4, pp.
327–342.
Romaniuk, J, Sharp, B, and Ehrenberg, A 2007,
“Evidence concerning the importance of
Using Teams in Production and Operations
Management Report
Introduction
Coca Cola Company is a global multinational
with operations in many countries. The company
is a manufacturer and retailer of various
beverages and non-alcoholic drinks. All
withstanding, the company is well known for its
flagship brand Coca Cola although it has more
than 500 brands.
As far as a wider global presence is concerned,
the company has 500 brands in more than 200
countries (Coca Cola, 2011, p. 4). This therefore
underlines its desire to conquer more markets
around the world because it has been coming up
with new products and brands that can suit
different market interests.
As far as its business is concerned, the company
operates a franchise system that has proved to be
successful in the markets that it has a presence.
In this case, it only produces syrup that is sold to
different bottlers that have exclusive rights
throughout the world.
When it comes to financials, Coca Cola
Company is listed on the New York stock
exchange market and is part of other indexes. As
of 2010, the company recorded revenues of US$
35.119 billion (Coca Cola, 2011, p.12). The
company’s operating income in the last financial
year was US$ 8.449 billion while its net income
was recorded at US$ 11.809 billion (Coca Cola,
2011, p. 15).
As far as its asset portfolio is concerned, Coca
Cola Company is valued at US$ 72.921 billion.
Based on the fact that the company operates in
many countries around the world, it employs
139,600 people (Coca Cola, 2011, p. 9). To
enhance its operations, it has other subsidiaries
that have enabled it to diversity thereby serving
its customers and market well.
When assessed from a market share point of
view, Coca Cola Company has a market share of
around 50% while its share in the US has
increased to almost 42%. This means that the
company is still a major player in the global
beverage industry. To continue establishing
itself as a force to reckon with in the market, it
has introduced new products to suit individual
markets because of different global diversity
issues.
The company’s production or operations
management
Coca Cola Company has embraced the best
production and operation management practices
and that is why it has continued to be successful
as time goes by. It is not a mean task to have
operations in more than 200 countries and
coordinate them effectively which shows that
the company is doing well as far as operations
and production management are concerned.
As far as production is concerned, the company
operates a franchise system that it has relied on
to reach its wide market. This means that the
system needs effective management in relation
to overall brand strategy (Tucker, 2009, p. 23).
The company has built a good strategy on
concentrate production that it sells to different
bottlers for production of beverages.
This is not an easy task because the concentrate
syrup is supposed to be supplied to more than
200 countries that it has a presence. All this
withstanding, the company’s franchise model
has come under pressure because of intensifying
competition that has been necessitated by health
conscious customers who want health oriented
drinks.
To be successful as far as operations and
production management are concerned, the
company has occasionally rejuvenated its core
product line for long term sustainability. In this
case, to expand its operations in new markets, it
has relied on key acquisitions mostly in the non-
carbonated drinks sector. This has been made
with an aim of expanding its presence in the
growing market.
As a matter of fact, this has been coordinated by
a strong and dedicated team for efficiency and
success. Business management that is oriented
towards operations management is the strategy
that the company has used to grow and expand
its market in recent years.
This means that it has increased its cooperation
with key partners’ to streamline its operations.
The company prides itself in upholding the
quality promise that has enhanced customer
loyalty all along from diverse and distinct
customers (Coca Cola, 2011, p. 11). All this can
be well explained from its concentrate
production, bottling and product delivery that is
unique in the market.
Production management is evaluated through
software that minimizes production downtime
that can be costly to a global company like Coca
Cola. This has therefore enabled the company to
serve its market on a global scale without any
problem which can be tiresome without such
measures.
The company’s approach to pricing has been
very good because it has enabled its partners and
bottlers to continue being committed to its true
business ethics and values. Sustainability has
been embraced with a long term objective of
ensuring that the company’s production
activities are not affected in any way thereby
disrupting market activities.
In this case, the company is always flexible as
far as its business model is concerned which
enhances operations management because
managers are able to come up with alternatives
that will enhance productivity.
All this withstanding, Coca Colas production
and distribution system has been unique in the
market thereby enabling it to realize different
opportunities on a global scale. It should be
understood that as much as issues might arise as
far as the company’s operations and production
management is concerned, it has been successful
on a wider business scale (Plumb, 2009, p. 31).
Coca Cola’s use of teams in production and
operations management
Coca Cola’s use of teams in production and
operations management has been reinforced by
the fact that the company is the world’s largest
producer and distributor of Coca Cola products.
In this case, strategic management has been well
managed by teams to ensure and enhance
sustainability.
Most of the company’s programs have been
adjusted as time goes by to accommodate the
changing business environment which has
therefore enhanced the use of teams. Coca Cola
uses teams effectively to reduce the impact of
the changing business environment on the
company’s operations management.
Because it relies on a franchise system to do
business, teams have been well coordinated to
ensure that everything is running well and
successfully. The use of work teams has mostly
been embraced in production activities (Coca
Cola, 2011, p. 15). This has been widely used in
concentrate production because it is at the core
of the company’s success.
In this case, the worldwide management team
has ensured that local operations are organized
in good and coordinated teams for enhanced
production of Coca Cola products in different
markets. For enhanced production, teams are
embraced and given enough time to execute
their ideas so long as they are in tandem with the
company’s objectives and expectations in
relation to set targets (Plumb, 2009, p. 62).
Proper production and operations management
requires good teams for execution of strategies
and this is what Coca Cola has capitalized on for
success and long term sustainability.
Management teams are competitively selected
for each country to be in charge of operations
thereby serving markets well.
In this case, the company’s operations are
divided into six operating units that are in charge
of different markets (Coca Cola, 2011, p. 27).
Most notably, these teams produce an attractive
combination that has kept the company going as
far as its operations are concerned. The use of
teams has been capitalized on for individuals to
make final and good decisions that will enhance
productivity.
Company’s ability to adjust
Coca Cola is a global company and this means
that it operates in a unique and competitive
business environment. The recent global
financial crisis posed a lot of challenges to the
company based on the fact that it has operations
in many countries around the world.
The financial crisis affected incomes in a great
way thereby compromising the company’s sales
margins. In this case the company should be able
to communicate effectively with its customers
and employees on any changes that will be made
to enhance sustainability.
The company was not hurt by the global
financial crisis in a broad way because it was
able to adjust effectively through proper
communication. It should be known that the
company has the ability to adjust its approach to
pricing which gives it an advantage to respond
to emerging market needs and trends. This is
because it only sells concentrate to its bottlers
and not the finished product (Coca Cola, 2011,
p. 35).
The company’s ability to respond to any
financial crisis is enhanced by its corporate
social responsibility programs that have
endeared it close to its customers. This means
that customers have always stood with the
company even in hard times.
Employees are put at the heart of the company’s
operations which means that they are always in
contact with the top management which
promotes communication thereby enhancing its
ability to respond to different problems. This is
because employees have felt that they are part of
the company which implies that any problem
will be shared together as a family.
The company’s greatest strength is in its ability
to respond to emerging market challenges which
has been as a result of its experience in diverse
and distinct markets (Coca Cola, 2011, p. 17).
Creativity and problem solving skills have been
instilled in employees to make them good
ambassadors of the company’s products in
different markets. This means that employees
can be able to interact with different customers
thereby informing them on the crisis without
compromising products and services.
Strategic Management Principles of a
Product: Market Circumstances Report
Introduction
Strategic marketing is the key aspect of effective
sales as well as product promotion. Because
these principles are defined by the marketing
situation, the key aspect of effective strategic
marketing is the proper resource allocation, as
well as adequate decision making. Therefore,
strategic decisions differ depending on the
marketing situation. This paper aims to review
strategic management principles of a product
depending on the market circumstances, based
on the results of the economic simulation.
Monopoly
The pricing strategy on the monopolistic market
should consider market demand as well as the
production costs. Therefore, considering the
product elasticity, it should be stated that the
price can not be increased or decreased
unreasonably. The price increase means lower
demand. Optimal parameters for this situation
will be:
• Price $2,550
• Total cost – 12.18
• Total revenue – 13.5
• Total profit – 1.29
Results of these parameters are given on the
graph below:
Therefore, this pricing will be the optimal
variant, while the other variants will be featured
with higher costs and lower profits.
Advertising is the reliable engine of marketing
promotion and product development. Therefore,
considering the opportunity of stimulating
demand, the new concepts should be promoted
with an aggressive advertising campaign.
Additionally, the increased demand will help to
lower the price:
Additionally, the growing popularity of the
product will stimulate the effectiveness of the
advertising campaign. (Anderson, 23)
Considering the necessity to improve the
product, the company needs to focus on the
production process. While specific
improvements and innovations will increase the
attractiveness of the product in general, the
decrease of the production costs by optimizing
the manufacturing process will help to increase
demand, as well as lower prices ($ 2,200)
Therefore, as it is stated by Grant (57):
The corporation’s growth strategy has focused
primarily on internal new product development,
emphasizing both improved products for
existing customers and new products for new
markets. One formal objective assigned to every
business unit is to obtain at least 30 percent of
annual sales from products introduced within the
past years.
In the light of this statement, it should be
emphasized that company development is the
cornerstone of effective strategic marketing.
Regardless of the opportunities and possibilities
of technology development, the improvement of
the production process should be of No. One
priority.
Oligopoly
The key aims of the oligopoly competition
involve deriving the maximum potential of the
market, as well as stabilizing the prices.
Therefore, there is no need to lower the prices
for increasing the market share, as this will
inevitably lead to essential losses. Therefore,
there is no need to increase prices, as this will
distract the target audience. Therefore, the
optimal price for the simulation is $1750. This
presupposes the maximum revenues, and the
optimal production costs, while the profits are
the highest.
Monopolistic Competition
When several brands are offered on the market,
the actual importance of supporting new brands
is explained by the fact that commonly known
brands can keep their positions, while the
introduction of a new one will help the company
to gain higher market positions. As this product
will compete with other bands on the market, the
overall market share of the company increases.
This creates the circumstances of monopolistic
introduction, while the other companies do not
have similar products. (Johnson, 45)
Perfect Competition
Perfect competition is regarded as the most
complicated market situation for manufacturers.
The price can not be defined by the vendor,
while it is market-defined. Therefore, the only
way to increase profits is to reduce the costs. If
the company can reduce the costs of the product,
this will help the company to make the prices
closer to the optimum. Anyway, cost reduction
will increase profits, and provide wider
capacities for researches, improvements, and
innovations.
Anyway, as it is stated by Walker (34), the
company should be responsible for attracting
and keeping consumers, while this may be
achieved by increasing the quality of the
product, its uniqueness, and reducing prices.
Nevertheless, the cornerstone of these aspects is
the necessity to improve the production process.
This will help to kill all these birds with a single
stone: improved production is featured with
reduced costs, and implementation of
innovations will be less risky if the
manufacturing process is featured with lesser
wastes.
Conclusion
Strategic marketing is the key aspect of effective
business activity. Because business may be
performed within various marketing
surroundings, the actions aimed at price
forming, advertising, and investments are
defined by market realities. The most important
aspects of pricing strategy are defined by the
capacities of the product, as well as the actions
and prices of competitors. Every situation has its
optimal solution, however, the simulated
situations are perfect, while the terms on the real
market are also influenced by additional
circumstances and factors. Therefore, strategic
marketing should also involve studying these
factors, and adjustment of the strategies by them.
Works Cited
Anderson, James. Customer Value Propositions
in Business Markets. Harvard Business Review.
2011.
Grant, Robert. Contemporary Strategy Analysis.
Blackwell Publishing LTD. Oxford. 2008.
Johnson, Mark. Reinvesting Your Business
Model. Harvard Business Review. 2011.
Production and Operations Management –
The Alliance Between QANTAS and
Emirates Airlines Report
Executive Summary
In April 2013, Qantas and Emirates made an
alliance that was anticipated to lasting for a
decade. Qantas aspired that the alliance would
help it to counter the fierce competition that had
prevailed in the global aviation industry. Two
years down the line, the alliance has resulted in
benefits and challenges. Qantas is still
struggling.
While strategies such as a change of route from
Singapore to Dubai and the codeshare
agreement have benefitted both passengers and
shareholders, there is a need to review the
alliance agreement and amend it where relevant
to fit the current performance of the companies
in the market.
Introduction
In April 2013, Qantas and Emirates formed a
non-equity alliance with one of the objectives
being to unite towards expanding their network
coverage. Initially, Qantas had joined several
alliances such as One World Alliance to give
clients a wide range of travel options.
Qantas’ goal has always been to maintain an
impressive shareholder value in the global
market. One of the means for achieving such
goals was through creating an alliance with
Emirates Airline, which is one of the best
airlines in the globe. Emirates Airline also stands
out in the alliance. Nonetheless, the alliance has
witnessed various challenges.
Aims/Objectives
This paper seeks to assess the Qantas-Emirates
coalition with respect to production and
operations management.
Scope
Specifically, the paper offers:
I. My advice concerning risk and rewards of
the Qantas-Emirates Alliance
II. Operations management implications for
the Qantas-Emirates Alliance
III. My advice concerning the future of the
Qantas-Emirates Alliance
IV. Recommendations concerning the way
forward for the alliance
V.
Qantas-Emirates Alliance Assessment
By forging an alliance, both Qantas and
Emirates were going to face several risks and
rewards. In the case of Qantas, the international
airline company has suffered many losses. Any
strategic alliance is anticipated to preventing
further losses.
Globalisation and the amplified demand from
the middle-class clients have increased and
altered the nature of competition in the aviation
industry. Thus, a change in the marketing and
operations management was essential. Emirates
Airline, which is a global giant in the aviation
industry, flies to several destinations unlike
Qantas (Hornett 2012).
According to Baker (2012), one of the rewards
for joining with Emirates will include a better
competition positioning in the global market and
increased access to international destinations.
One of the provisions for the Qantas-Emirates
Airline is that Qantas will transfer its flight hub
from Singapore to Dubai. This move presents a
number of risks and rewards. Over the years,
competition has been growing in the
Singaporean route.
Hence, the move to Dubai route will avert
competition while at the same time lowering the
operations costs. Due to its financial struggles,
the company needs to invest in all platforms that
can cut its operations cost such as the alliance.
Mules (2013) says that the codeshare agreement
is likely to reward Emirates than it benefits
Qantas, depending on how the idea will be
implemented. The codeshare will allow the
companies to sell tickets on each other’s flights.
Since Emirates has a higher customer base than
Qantas, it is likely to have more sales in relation
to Qantas.
Thus, Qantas must be ready to face this risk.
Furthermore, Qantas will have to incur an extra
cost of moving from Singapore to Dubai. This
move is a huge risk considering Qantas’
financial challenge. Despite Qantas-Emirates
Alliance being a good agreement, Qantas should
have reconsidered its stopover destination. For
instance, Cathay via Hong Kong would have
been a great route (Kingsley-Jones 2013).
Operations Management Implications for the
Qantas-Emirates Alliance
The alliance comes with drastic implications for
the passengers, as well as stakeholders. For the
clients, one of the major changes is the route
change. Through the alliance, Qantas has
dropped its Singapore-Frankfurt route. Instead,
it will have A380 flights stopovers at Dubai.
This strategy will help passengers to move easily
to other destinations such as Europe and Africa
via Emirates through the codeshare agreement
of the alliance. Nonetheless, the company will
retain some of its daily flights travelling to Hong
Kong and Singapore (Kelly 2013).
Furthermore, the alliance will help Qantas and
Emirates’ passengers to enjoy services of both
airlines under one umbrella since they will have
a wider platform to earn and redeem their points.
Passengers will be assured of quicker trips to
Europe and an interesting airport, namely Dubai.
Passengers stand to benefit from the alliance.
While the alliance will eliminate competition
between Emirates and Qantas, there is an
increase in airfares due to the reduced
competition (Caswell 2012). Investors from
Qantas are assured that the alliance by Qantas
and Emirates will see the former move its
stopover to Dubai to reduce the operations cost
since trips from Dubai to European destinations
will be shorter than from Singapore to Europe.
Furthermore, the codeshare agreement will
reduce the labour costs for both Emirates and
Qantas since services that would have been
served by one company in a given destination
will be served by another company while still
enjoying the benefits. For instance, Emirates’
passengers who travel to Australia will be served
by Qantas Airways, hence saving in the
operations and labour costs (Kelly 2013).
Advice concerning the Future of the Qantas-
Emirates Alliance
Qantas has recorded losses of up to $450
million. While improvements have been made
since its alliance with Emirates, it still maintains
the loss trend. Emirates must ensure that it is in
the right alliance. One of the objectives of the
production and operations management is to
ensure that the company offers services that are
of proper quality, quantity, and time conscious.
The services have to adhere to the policies and
goals of the company. The instability of Qantas
may harm the alliance, particularly the
codeshare treaty. Qantas has recently retrenched
over 5,000 employees in an effort to cut down
on operations. Reducing staff members may
result in poor service delivery, thus harming
Emirates through the codeshare agreement
(Rhoades 2014, p. 32).
In the case of Qantas, it is evident that Emirates
Airline is a giant in the aviation industry. It
might appear that the contract marginalises
Qantas. For instance, Qantas now gets less
revenue from clients who travel to most
European destinations from Australia because
passengers are taken to Dubai where they take
Emirates to their European destinations.
Qantas only receives a commission through the
codeshare agreement. For a struggling company,
Qantas needs to maximise on output while
minimising input. Thus, Qantas-Emirates
Alliance needs to be re-evaluated (Hutchinson
2013).
Conclusion
This paper has evaluated the Qantas-Emirates
partnership with respect to production and
operations administration. So far, the situation
on the ground seems otherwise in the case of
Qantas-Emirates Alliance. Nonetheless, the
future remains uncertain for the alliance if
Qantas keeps on struggling.
Recommendations
To keep up with the competitive global aviation
industry, Qantas needs to work closely with its
competitors. On the other hand, to maintain a
huge share in the global market, Emirates needs
to work closely with other airlines to reach its
diverse network of clients.
However, before and after joining an alliance,
the companies must ensure that they are in a
gain-gain agreement. Hence, both companies’
management departments need to review the
situation to ensure that the alliance is not part of
the downfall.
References
Baker, C. (2012) Qantas Makes the Jump. Asian
Aviation Magazine. 10(8), pp. 16-17.
Caswell, M. (2012) Qantas teams up with
Emirates and ends BA tie-up. Business Traveller
(UK/Europe Edition).1(1), p. 8.
Hornett, G. (2012) Dubai to benefit from airline
pact. MEED: Middle East Economic
Digest. 56(37), pp. 18-21.
Hutchinson, A. (2013) Qantas and Emirates
team up to route flights through Dubai. Travel
Trade Gazette UK & Ireland. 3045(1), p. 5.
Kelly, E. (2013) Emirates and Qantas Take
Off. Asian Aviation Magazine. 11(4), p. 8.
Kingsley-Jones, M. (2013) Legacy carriers
ponder Gulf tie-ups with caution. Airline
Business. 29(7), p. 8.
Mules, R. (2013) The Long Haul: The QANTAS
– Emirates Alliance. BusiDate. 21(3), pp. 2-4.
Rhoades, D. 2014. Evolution of International
Aviation: Phoenix Rising. Vermont: Ashgate
Publishing, Ltd.
