Macro Environmental Analysis of Qantas Airlines

Macro
environment
analysis
Qantas Airline

Introduction
Qantas airways is a leading air carrier in Western Australia. The airline has been operational
since 1921. There are various micro as well as macro environmental factors that largely
determine the growth of any organization (Johnson, 2016). PEST analysis is a strategic
management tool that helps marketers in gaining a deeper insight about external factors
impacting the organization. This understanding is crucial in order to effectively battle industry
competition and build a sustainable business. The three important factors that impact the
business environment are policy changes, changes in government regulations and macro-
economic factors. The impact of these factors on Qantas Airlines are discussed below:
Political: Government of Australia had deregulated the airline industry in 1990. Since then
Qantas is operating as a private firm. This privatization led to the emergence of a large number
of competitors. For a sustainable growth of Qantas or any airline firm, global political scenario
becomes as important as local.
Technological: With the advent of technology and increasing use of internet, Qantas has been
able to reach out to customers through digital platforms (Felix, Rauschnabel & Hinsch, 2017).
Qantas has created its social media presence which has garnered the firm millions of customers.
This is the result of effective technology. Technology has assisted Qantas in providing customers
with quicker service and enabled effective operational management.
Economic: There are various economic factors too in the macro environment that impact the
performance of Qantas Airline. The improving economic state of the country has increased
purchasing power of people and hence improved their lifestyles. These improved lifestyles have
led to an increase in the frequency as well as the number of air travels by people. Australia
Tourism is also on a rise and hence this increases the number of tourists visiting Australia
annually. Hence resulting in improved number of customers for Qantas.
Social: Society at large has a direct impact on any business. Changing lifestyles of people have
allowed them to shift to air transport from road. People are always looking at ways to save time.
Qantas has also improved its offerings and interiors in order to match up to the changing