Reflective Summary of Business Valuation and Analysis for Qantas Airlines

Running Head: REFLECTIVE SUMMARY OF THE BUSINESS VALUATION AND ANALYSIS FOR QANTAS
AIRLINES
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Running Head: REFLECTIVE SUMMARY OF THE BUSINESS VALUATION AND ANALYSIS FOR QANTAS
AIRLINES
Reflective Summary
QANTAS, the mention of this name in connection with airlines industry connects us to the
third oldest airlines in the history of the aviation. As an organization, Qantas represented the
Australian aviation industry during the early era of aviation and the jet age quite effectively.
The current business valuation and analysis report is an attempt to explain, check & balance
the performance of the Qantas under the changing environment of the aviation sector of the
world in the 21st century.
The analysis on the scale of the “Five forces Framework” clearly states that pricing is the
most important factor; Qantas is facing direct competition with the rival airlines on the
domestic front. The other means of surface transportation are also competing because they
are offering low fare options. The findings of the “Five forces analysis” states that Qantas is
facing severe competition on the domestic front with rivals like Virgin Airlines. They are also
competing with new entrants in the market (Aulenbach, 2007).
An analysis on the scale of SWOT suggests that strengths of Qantas score very high because
of its cost leadership strategy. This airline played the key role in keeping the prices of the
ticket at an optimum level since the year 2000. In order to combat the price war, it came up
with right kind of alliances with the partners like Jetstar and others. Service and safety
standards are other areas where they played the role of the benchmark setter for the industry
(Matsude,2013).
While having a look at the weaknesses, we find that it is losing its grip over the local market
because competitors have taken the price to the rock bottom levels. Qantas is now focusing
more on capturing the Asian markets; experts believe that they might lose their focus on the
domestic market which is dynamic in nature. Apart from the price war, the competition is
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