Qantas formally known as Queensland and northern territory Aerial services nicknames the flying kangaroo is the one of the largest airlines in the world and oldest second oldest airline. Qantas was founded in 1920 by Paul McGuiness and others. Qantas has expanded greatly throughout the years due to the methods of expansion employed by the business. Qantas had succeeded in this and in 2004 Qantas was given airline of the year from Air Aviation world the leading international aviation publication. Qantas also utilized methods of expansion such as Acquisition, strategies alliances and establishing new airlines. Lastly the four specific influences in the global business as Qantas are influenced by financial, social and cultural, political and legal influences.
Reasons for international expansion
Aviation is an industry is truly global in nature and for Qantas to compete effectively in the global market to had to service all of the worlds major markets for example go to America were there are more people and is more money.
• Qantas has chosen to expand due to the limited domestic demand and growth potential. This is because of the small Australian population and market size in Australia as Melbourne and Sydney is the most profitable route. Qantas has launched there recent Jet star Asia to expand to the Asian market were it is more profitable and easy to access.
• Another reason to expand is because of new competitors such as virgin blue where they have been able to capture the market share and establish a brand image with a high profiled CEO Richard Branson and a popular virgin group.
• Gaining economics of scale is the reduction of costs of production that does arise from increasing the size of scale of production facility and spreading cost over a larger output. Qantas have utilized this method by alliances and code sharing with other airlines. This allows Qantas to generate a lower average cost as larger...