Qantas Airways Analysis

This report provides a detailed analysis of Qantas Airways, including a situational analysis of the micro and macro environment, a summary of competitors, and a SWOT analysis. The report also discusses the launch of the new product, Land filler fleet, and its impact on the company.

Running Head: QANTAS AIRWAYS ANALYSIS 1
QANTAS AIRWAYS ANALYSIS

Running Head: QANTAS AIRWAYS ANALYSIS
Situational analysis determines the analysis of the both micro as well as the macro
environment. Micro environment deals with the elements of the internal environment whereas
the macro environment deals with the external environment. In this report a detailed analysis is
carried out of the Qantas Airlines with respect to the launch of the new product namely Land
filler fleet in the market. The direct as well as the indirect impact of the land filler on the
performance and how the internal and external factors have welcomed it has been discussed in
detail.

Running Head: QANTAS AIRWAYS ANALYSIS
Table of Contents
OVERVIEW................................................................................................................................................3
MICRO ENVIRONEMENT ANALYSIS...................................................................................................3
Customers:...............................................................................................................................................3
Suppliers..................................................................................................................................................4
Employees:..............................................................................................................................................4
Shareholders:...........................................................................................................................................4
SUMMARISING COMPETITORS............................................................................................................5
MACRO ENVIRONMENT ANALYSIS....................................................................................................6
Political...................................................................................................................................................6
Economic.................................................................................................................................................6
Social.......................................................................................................................................................7
Technological..........................................................................................................................................7
Legal........................................................................................................................................................7
Environmental.........................................................................................................................................8
SWOT ANALYSIS.....................................................................................................................................8
CONCLUSION.........................................................................................................................................10
References.................................................................................................................................................12

Running Head: QANTAS AIRWAYS ANALYSIS
OVERVIEW
Qantas is basically an acronym which defines Queensland and Northern Territory Aerial
Services. Qantas Airways is one of the renowned flagships in the history of the Australian
airlines. Qantas was founded in the year 1920, in the month of the November. Qantas has its
hubs at the Brisbane Airport, Melbourne Airport and Sydney Airport. Qantas also have the
subsidiaries such as Jet star Airways, Qantas freight. At present the size of the fleet is 130 and it
can cover almost 85 destinations. Currently the team has 26150 members to operate the business.
Qantas has 65% of the Australian share and carried 14.9% of all the passengers travelling in and
out of Australia. In this report the major discussion is carried out on the micro and the macro
environment parameters. The competitive scenario has also been portrayed in this report with
reference to the position of the company (Qantas, 2018).
MICRO ENVIRONEMENT ANALYSIS
Micro environment is the environment which deals with the internal factors that can
affect the performance and the growth of the organization. The micro environment consists of
the elements like Customers, competitors, employees, suppliers, shareholders and lot more.
Customers:
Customers are the king for the firm like Qantas who has to deal with the enormous and
the large customer base each day belonging to the different cities. The major focus of the Qantas
is to provide the A grade services to the customers and analyzing their needs. Moreover the
customer satisfaction tends to be the real reward for the Qantas; hence the customers shall be

Running Head: QANTAS AIRWAYS ANALYSIS
treated like a family. For keeping the customers happy, they can avail the benefits of the
membership and discounts and schemes to keep them serving happily.
Suppliers
The suppliers of the aircraft and any other assemblies that are required to operate are also
the important members for the Qantas Airways. Qantas shall focus on the suppliers and the credit
period of the suppliers shall be cleared on time. This would also help in building the long term
liaison and relationships with the customers. This way the suppliers will be happy and they will
invest more in the Qantas.
Employees:
The major pillars of the Qantas Airways are its employees, whose teamwork and
dedication leads to the current scenario of the Qantas. The employees shall be made aware about
the team goals as well as the individual goals and the relevant rewards shall be given to keep
them motivated. After the introduction of the new product, the employees must be given training
on the practical basis so they can understand the mechanism to operate. The employees that
belong to the ground staff shall be given vocal trainings to improve the communication barrier
with the customers.
Shareholders:
The shareholders are the ones who incorporate the funds in the business for the long term
sustainability of the company. At present the major interest of the shareholders are in the returns
for the funds invested and the stability and growth of the Qantas. Qantas shall focus on
improving the return on investment from 12.98 to 15%. This would keep the existing
shareholders happy and more new investors will join the Qantas.

Running Head: QANTAS AIRWAYS ANALYSIS
SUMMARISING COMPETITORS
Competition is one of the major factors that revolve around the organization. The major
competitors of the Qantas are Singapore Airlines, Virgin Airlines, Emirates, and Air India. The
competitive analysis indicates the major competitor to be the Virgin Airlines across the
Australian borders. Despite the fact that Qantas has a decent brand name and notoriety, Tiger
presents genuine challenge to about every one of the carriers by giving minimal effort flights.
Moreover, Singapore Airlines tends to be, a noteworthy player in the aircraft business,
additionally backs Tiger. Singapore airlines are giving tuff goals to the Qantas airways in terms
of capturing the overseas and the flight ratings and the customer satisfaction. Qantas needs to
build certain strategies and in order to fill out the existing loopholes. The competition has
reached the apex. As it can be observed from the financial data of the Virgin Airlines, Singapore
Airlines and the Qantas Airways following are the results of the year 2018-2019 (Qantas, 2018).
Particulars Qantas Airways
($)
Virgin Airlines
($)
Singapore Airlines
($)
Revenue 16628 5417 16323
Net Profit 871 (681) 683
Total Assets 18647 6188 30505
Total Liabilities 14691 5097 17218
Equity 2393 2239 13287
Expenses 8892 4393 1774

Running Head: QANTAS AIRWAYS ANALYSIS
MACRO ENVIRONMENT ANALYSIS
Macro environment is the environment which deals with the external environment factors
that may include the political, economic, social, technological, legal and environmental factors.
These factors can typically affect the performance and have a huge impact on the company such
as Qantas Airlines when it wants to introduce the new product (Crotty, 2018).
Political
Under the political factors the regulatory practices requires Qantas to manage diverse
regulations in the various open market. Over the past few years, there is a change in the
Australian and the emerging economies. Apart from this the political stability is also required.
And when it comes to the launching of the new product the political factor play a major role. To
withstand these elements in the business, Qantas Airline needs to incorporate strategic
emergency the executives systems into its vital arranging. Advertising review and arranging
ought to likewise incorporate these components in the arrangement (Thompson, Strickland &
Gamble, 2015).
Economic
In case of the economic scenario, Qantas Airlines has one of the important sources that
is the skilled workforce with the help if which it can easily launch the new land filler fleet and
can cater the customers easily. Also with the liberalization in the trade policies, Qantas airways
can reach the off limits to the firm. After the great recession in the year 2018, the liquidity
factors are easy on the Qantas will eventually lead to the great inflation in the Australian
economy. The financial presentation of a country with respect to inflationary conditions, GDP
development rates, and the degree of joblessness essentially impact the development potential
outcomes and the income of an organization. The ongoing worldwide money related emergency

Running Head: QANTAS AIRWAYS ANALYSIS
unfavorably influenced Qantas Airline to the point of reporting an arrangement to eliminate
down more than 1700 positions (Dowling, 2016).
Social
Social factors also contribute the major role in determining what can affect and what are
the possibilities or the opportunities for the future. The gender roles have evolved in Australia
and 30% of the staff is females in the Qantas Airlines. The customers are ready to give the higher
preferences to the experiential products and services. Media outlets are also playing a vital role
in the performance management (Banihabib, Hashemi-Madani & Forghani, 2017).
Technological
Technological Innovation has abbreviated the item life cycle and it has empowered
providers to rapidly grow new items. This has put weight on Qantas Airways showcasing
division to keep the providers cheerful by advancing assorted scope of items. It has added to the
expense of activities of the Qantas Airways. For the purpose of the enhanced technology Qantas
has entered into the land fill fleet, a new concept that detains the use of the plastics and the
makes the carrier the lightest weighted carrier in terms of the other fleets. Moreover this would
give a competitive advantage to Qantas as it would also help in cost cutting of the fuel. The most
recent innovation is quick bringing down generation and overhauling cost in the Transportation
segment. Qantas Airways needs to rebuild its inventory network to acquire greater adaptability to
meet both client needs and cost structures (Kreutzer, 2019).
Legal
The legal factors also play a vital role in determining the macro parameters of the
Qantas airways. The legal protection of the fleet and the carrier is most important feature of this

Running Head: QANTAS AIRWAYS ANALYSIS
new land fill carrier. Apart from this the other rights such as IPR rights are also important. The
data protection laws have also been introduced to protect the data on cloud as well. This will help
in keeping the information private and secured (Kew & Stredwick, 2016).
Environmental
Environmental factors depicts the truth that carriers are known for discharging carbon
in light of stream fuel expended makes the ecological presentation of the flying business a
noteworthy social concern. Qantas Airways has confronted a generous degree of natural issues.
About 95% of Qantas' carbon impression is basically from its flying tasks. In that capacity, in
embraced formal advertising review and arranging, Qantas Airways has to take a severe step
towards the society and the environment. The responsibility of the Qantas while introducing the
new fleet would be the lower carbon emission and the land filler was introduced to get rid of the
basic plastics. Hence, from the point of view of the environment, Qantas has already begun an
initiative (Muenjohn & McMurray, 2018).
SWOT ANALYSIS
The SWOT Analysis is a matrix is clearly presented in the table format below. The
SWOT analysis is a framework that determines the parameters such as strengths, weaknesses,
opportunities and threats. In this section a detailed analysis has been carried out with respect to
Qantas Airlines.

Running Head: QANTAS AIRWAYS ANALYSIS
Strength
Qantas has the strong dominance in the market
and therefore the new project of the land fill
free flight is going to be a success.
The increase in the global presence with the
partnership will help the product take a new
move (Qantas, 2018).
Due to the dual brand strategy and the market
segmentation policy the new product will
endure long term benefits (Singhal, 2018).
Due to the strong, marketing and the public
relations, the product can make use of the
advantage and work on the products.
Weakness
Due to the high fare cost and the high
competition, the costs are kept at surge which
can create a backward move in the mind of the
customers.
In comparison to the others the operational
expenses are higher than the usual and this can
led to the poor decision making (Travel
Insider, 2018).
The entire business of the Qantas is based on
the international business, leading to the
disability of the foreign investors in
comparison to its competitors.
The fuel efficient crafts are being planned to be
purchased now whereas the competitors are
already working on it (Carr, 2019).
Opportunities
The biggest opportunity for the Qantas is the
partnership with the Emirates which will give
Threats
There is a high amount of the competition,
with a number of the giant airlines in the range

Running Head: QANTAS AIRWAYS ANALYSIS
them triple the customers and the opportunity
to serve them.
Due to the presence of 6 functional subsidiaries
the company can cater different products to the
different market segments (Perrott, 2015).
This new flight will carry more than 17
countries and 60 destinations and cater almost
500 passengers per week.
Australia will be considered as a continent
along with the New Zealand, making a big
space for creating a new hub for the airlines.
The airlines are
of the domestic as well as international routes.
Security is one of the biggest challenges
especially when the company is moving
forward with the new land filler fleet.
Trade and the political crisis between the USA
and the Russia is one of the major and the
crucial points that could affect the entry of the
land filler. The economy may suffer.
The likely increase in the price of the fuels is
also one of the major threats in comparison to
the other companies (Kılkış, & Kılkış, 2017).
CONCLUSION
From the entire analysis it can be concluded that the Qantas is at a good position in terms
of the competitors yet it needs more improvement on the ground of the operating expenses as
well as the stability of the new product. Further, it is also advised to the company to keep regular
intervals of the supervision of the cash inflows and the cash outflows to maintain the sound and

Running Head: QANTAS AIRWAYS ANALYSIS
the healthy liquidity position of the company. With the help of the initiatives and the strategic
business decisions Qantas can grow and set a new initiative in the market of the Airline industry.
This would also help in grabbing the greater market share.

Running Head: QANTAS AIRWAYS ANALYSIS
References
Banihabib, M. E., Hashemi-Madani, F. S., & Forghani, A. (2017). Comparison of Compensatory
and non-Compensatory Multi Criteria Decision Making Models in Water Resources
Strategic Management. Water Resources Management, 31(12), 3745-3759.
Carr, C. (2019). Corporate social responsibility, human rights and law firms. Alternative Law
Journal, 1037969X19834109.
Crotty, D. (2018). Travelling in style: Qantas in the deco era. Spirit of Progress, 19(1), 17.
Dowling, G. R. (2016). Winning the Reputation Game: Creating Stakeholder Value and
Competitive Advantage. MIT Press.
Kew, J., & Stredwick, J. (2016). Human resource management in a business context. Kogan
Page Publishers.
Kılkış, Ş., & Kılkış, Ş. (2017). Benchmarking aircraft metabolism based on a sustainable airline
index. Journal of Cleaner Production, 167, 1068-1083.
Kreutzer, R. T. (2019). Tools for the Strategic Analysis. In Toolbox for Marketing and
Management (pp. 89-142). Springer, Cham.
Muenjohn, N., & McMurray, A. (2018). LEADERSHIP AND DECISION
MAKING. Leadership: Regional and Global Perspectives, 379.
Perrott, B. E. (2015). Building the sustainable organization: an integrated approach. Journal of
Business Strategy, 36(1), 41-51.

Running Head: QANTAS AIRWAYS ANALYSIS
Qantas, (2018). Our Company. Retrieved from
https://www.qantas.com/travel/airlines/company/global/en
Qantas, (2018). Ratio Analysis. Retrieved from http://financials.morningstar.com/ratios/r.html?
t=QAN&region=aus&culture=en-US
Singhal, M. (2018). Corporate social responsibility practices of selected private sector enterprises
in Rajasthan.
Thompson, A., Strickland, A. J., & Gamble, J. (2015). Crafting and executing strategy: Concepts
and readings. McGraw-Hill Education.
Travel Insider, (2018). Introducing Qantas First landfill- free. Retrieved from
https://www.qantas.com/travelinsider/en/trending/new-qantas-flight-waste-free-
sustainable.html