Business Environment of Qantas Airlines: SWOT and PESTEL Analysis

This report analyzes the business environment of Qantas Airlines using SWOT and PESTEL analysis. It provides insights into the company background, market size, and collaborations with Emirates Airlines. The report also discusses the internal environment of the company, including its dual brand strategy, operational excellence, and industrial relations.

Running head: BUSINESS ENVIRONMENT
Business Environment
Name of the Student
Name of the University
Author Note

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Executive Summary

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TOC

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Introduction
The aim of the report is to depict the business environment of the firms as these
environments have a huge effect on the performance of the firms. iT has to be said in this context
that the firms need to assess the business environments before they can be able to take any
necessary step indeed. There are generally two kinds of business environments. These two kinds
of environments are internal environment and external environment. Both of these environments
are very important for the better performance of the companies indeed. The organization that will
be chosen for this paper will be Qantas Airlines. This organization is believed to be the leading
company in the Airlines industry in the country. The frameworks that will be used to define the
business environment for this paper are the SWOT analysis and PESTEL analysis. The
background information will be given in this analysis as well.
Company background
Qantas Airlines is the leading company in the airlines industry in Australia. They are the
largets airlines industry by their fleet size as well. The company was set up in the year 1920 in
Queensland. They are the largest airline both in terms of the international and domestic flights.
The main focus of the company is on the safety of the passengers and making sure that the
passengers can rely on the services they provide. The Qantas Airlines Company is considered as
one of the strongest brands in Australia (Qantas.com, 2018). The customer service of the
company is also very good and this is the reason for this airlines company to be the first choice
for all the travelers. The company has two complimentary airline brands named as Qantas and
Jetstar (Qantas.com, 2018). The engineering and maintenance works of the company is also very
important as well. In the following section, the internal and external business environment will
be discussed. The market size of the company is quite high as they operate in regional, domestic

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and international services. The number of the employees is around 30000 people (Qantas.com,
2018).
Business environment for Qantas
Internal environment
The framework that will be important to measure the internal environment of the
company will be the SWOT analysis framework.
Different main points
1. The Qantas Airlines is a very strong brand in the Airlines industry and they dominate the
industry. The market share of both Qantas and Jetstar is around 60% if combined. This is
why Qantas can be the global market leader in the airlines industry as well. The on-time
performance of the brand is one of the major reasons for their success indeed
(Qantas.com, 2018).
2. Qantas has been considered as a major contributor in the development of the Australian
economy and the GDP growth of the country (O’Neill, 2013). The operational excellence
is so good that Qantas has established themselves as one of the most reputed corporate
brands in Australia. They make partnerships with the major global companies so they can
provide the customers with the best services all through.
3. They have made collaborations with the Emirates Airlines so they can get an access to
the vast network of the later in Europe. This partnership with Emirates has been very
much valuable for the company in the recent times (O’Neill, 2013).

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Expanding the points
1. The dual brand strategy has helped the company to make target market segmentations in
an easier way indeed. Jetstar is the low-cost airline services and it values for money. The
Qantas is a premium airline service provider (Homsombat, Lei & Fu, 2014).
2. They manage their operations very switly to attain the customer satisfaction. The
industrial relations of the company have been going down because of the lowering of the
cist base in the companies. This is why the company will have to think upon this factor so
they can draw more stakeholders at their disposal (Kapferer, 2012).
3. The cost operations of the company have been rising so the company had to cut off the
number of their employees. If they cut down their manpower in the future it will ruin the
brand reputation of the company to a certain level indeed. The employees will find it to
be very difficult to retain their jobs in the company.