The role of the internet in international competitive strategy : the case of Qantas

Abstract

Picture this: Geoff Dixon, the newly appointed Qantas CEO, sat in his office looking at the 2001 annual report. Group revenue was up 12% and Net Passenger Revenue had increased 13% year-on-year. However, despite solid numbers, he must have known that tough times lay ahead for the airline. Online travel agents and buying sites had been taking an increasingly large share in the travel industry, to the point that airlines were losing touch with their customer base. Qantas management had seen the introduction of the internet within the airline sector and realised that online channels were the key to future growth. To them, technology and communication channels were constantly evolving, but the customer’s desire to do business with a brand that provided value was constant. The stakes were high, but Qantas had a plan that would engage customers and deliver benefits to both the consumers and the company.