Qantas Airways Business Analysis: Strengths, Weaknesses, and Strategy

This report provides a comprehensive analysis of Qantas Airways, Australia's flagship airline, focusing on its business operations and strategies within the highly competitive Australian airline industry. It highlights Qantas' strengths, including its customer-centric approach and data-driven strategies, which have contributed to its success in the aviation sector. The analysis also addresses criticisms related to the company's financial management and operational costs, particularly its struggle to compete with international airlines like Emirates and Etihad. The report concludes with recommendations for Qantas to improve its financial strategies to maintain its market position and global brand image, emphasizing the importance of effective customer management and addressing financial challenges. Desklib offers a wealth of similar solved assignments and resources for students.

Running head: COMPANY ANALYSIS
COMPANY ANALYSIS
Name of the Student
Name of the University
Author Note

1COMPANY ANALYSIS
Table of Contents
1. Introduction to the industry........................................................................................2
2. About the company....................................................................................................2
2.1 One aspect of the company which it excels at.....................................................2
2.2 Another aspect of the company which it excels at...............................................3
2.3 One aspect of the company which is criticised....................................................3
3. Conclusion and recommendations.............................................................................4
References......................................................................................................................5

2COMPANY ANALYSIS
1. Introduction to the industry
The Australian Airlines based industry is highly competitive in nature and is heading
towards more aggressive price based wars which have led to the increase in the competition
levels. The two largest players of the airlines industry of Australia are mainly Qantas
Airways and Virgin Airlines. The organizations have thereby taken part in highly aggressive
price based wars in order to attract the customers in an effective manner. The price based
competition has been able to affect the operations of the industry in a huge manner. The
airfares have been slashed down based on the effective price based wars that are going on
between the top organizations (Holt 2016). The company which has been considered for the
analysis in this report is Qantas Airways which is considered to be flagship airlines based
organization of Australia.
2. About the company
Qantas Airways is considered to be the flagship airlines based organization of
Australia which has been able to provide the best levels of services to the customers. The
company has been able to develop the topmost position based on the fleet size that has is
maintained in the country. The organization was established in the year 1920 and its
international operations had started in 1935. Qantas Airways is mainly based in Sydney and
has acquired more than 60% of the total shares in Australian airlines industry. The different
subsidiary organizations of Qantas operate in different parts of the world and the international
operations are thereby conducted in an effective way (Qantas.com 2018).
2.1 One aspect of the company which it excels at
The major positive aspect of operations of Qantas Airways in the industry is based on
the customer centric approach that has been taken by the company. The customers of the
company have always been provided with utmost levels of priority in order to fulfil their
needs effectively. The needs of customers have been kept at the top of all other operations
which of Qantas in the airlines industry. The transport organizations always need to consider
the various needs of people in order to develop the effective operations. The solutions which
have thereby been developed by the company based on specific needs of the consumers will
prove to be the most effective for proper operations of Qantas Airways (Hussain 2016).
The organization is thereby able to develop innovative solutions to the issues which
are thereby being faced by the customers. The major priority of the company is thereby based

3COMPANY ANALYSIS
on the ways by which customers are satisfied with the help of the products which are offered
to them. Qantas has thereby been able to increase its levels of innovation with the help of
proper satisfaction of the customers and providing them with effective services (Keiningham
et al. 2014).
2.2 Another aspect of the company which it excels at
The data driven strategy which has been implemented by Qantas Airways is another
major positive aspect of its operations in the airlines based industry. The ways by which
Qantas is able to manage the large volumes of data are based on the approach that has been
taken by the company. The executive brand manager of Qantas Airways Stephanie Tully has
played a major role in the proper implementation of the CMO Qantas Loyalty named
strategy. The company has been able to manage its marketing based activities with the help of
proper management of large amounts of data which is available (Marketing Magazine 2018).
Marketing plays an important role in the success of organizational operations in the
industry. Data which is used by the organizations is thereby the most important part of the
ways by which customers of the company have been satisfied effectively. Data has been able
to play an important role even in the marketing activities which are undertaken at the top
levels of management. The process by which the organization is able to maintain huge
amounts of data is an important part of the products and services that are provided to them.
The data is thereby required by the company in order to formulate effective strategies in order
to operate in the industry in a profitable manner (Kumudha and Bhunia 2016).
The effectiveness of the value chain of Qantas Airways has been increased by proper
integration of data. The frequent flyer based program is quite large in Australia and Qantas
thereby aims at maintaining the data of these customers in order to analyse their choices and
preferences. The usage of data thereby plays the most important role in the ways by which
the modern organizations can operate in an effective manner in the industry. The process of
data engagement is thereby an important part of successful operations of Qantas Airways.
The data driven based strategy can thereby be considered as another major positive effect of
the operations of Qantas Airways (Lin 2015).
2.3 One aspect of the company which is criticised
The major aspect of Qantas Airways which has been criticised in the airlines industry
is based on the financial issues that were faced by the company. The organization has faced
major issues based on the wages which are to be provided to the employees. The costs based

4COMPANY ANALYSIS
on the operations of Qantas is another major issues which has thereby been faced by the
company in the aviation industry of Australia. The high costs have thereby proven to be the
key to issues which have been faced by the company in the industry of its operations (James
Massola 2018).
The high costs are mainly based on the reaction which is provided to the market
related to the 252 million Dollars of losses in its operations. The organization has been able
to play a key role in the ways by which domestic services are provided to the customers.
Qantas has also not been able to provide effective competition to the companies like Emirates
and Etihad due to the lack of proper financial resources. The cost based structure and wage
structure of Qantas has thereby been under huge criticism in the airlines based industry of
Australia (Wang, So and Sparks 2017).
The cost structure which has thereby been developed by the company has been able
to provide effective levels of challenges to the operations of Qantas Airways. The
organization has been able to operate in a profitable manner in its domestic operations,
however, the international operations were affected in an adverse manner. The company has
been criticised due to the financial management based activities and management abilities is
an important part of the challenges which have been faced in the industry (Lin and Vlachos
2018).
3. Conclusion and recommendations
The report can be concluded by stating that the positive aspects of the business
operations of Qantas Airways are related to the customer first based strategy and the data
driven strategy. These aspects have been able to provide the company with huge success in
the aviation industry of Australia. The company has however faced huge number of
challenges based on the negative aspect related to the financial management related issues of
the company. The proper management of these issues can thereby play a major role in the
proper operations and profitability of Qantas Airways.
Recommendations – The major recommendations that are provided to the company
is based on managing the financial strategies in an effective manner in order to maintain its
position in the industry. The global reputation and image of the brand can thereby be
maintained with the help of proper management of customers and various financial issues
which are based by Qantas Airways.

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References
Holt, T.B., 2016. Mid Morning Concurrent Sessions: Consumer Perceptions in Aviation:
Presentation: From Customer Service to Self Service; the Decline of Passenger Satisfaction.
Hussain, R., 2016. The mediating role of customer satisfaction: evidence from the airline
industry. Asia Pacific Journal of Marketing and Logistics, 28(2), pp.234-255.
James Massola, H. 2018. High costs and wages key to Qantas' problems, says Deputy PM
Warren Truss. [online] The Sydney Morning Herald. Available at:
https://www.smh.com.au/politics/federal/high-costs-and-wages-key-to-qantas-problems-says-
deputy-pm-warren-truss-20140227-33jlw.html [Accessed 3 Sep. 2018].
Keiningham, T.L., Morgeson III, F.V., Aksoy, L. and Williams, L., 2014. Service failure
severity, customer satisfaction, and market share: An examination of the airline
industry. Journal of Service Research, 17(4), pp.415-431.
Kumudha, A. and Bhunia, A., 2016. Customer relationship management and marketing
practices in airlines industry-An empirical study. IJAR, 2(11), pp.39-43.
Lin, Y.H., 2015. Innovative brand experience's influence on brand equity and brand
satisfaction. Journal of Business Research, 68(11), pp.2254-2259.
Lin, Z. and Vlachos, I., 2018. An advanced analytical framework for improving customer
satisfaction: A case of air passengers. Transportation Research Part E: Logistics and
Transportation Review, 114, pp.185-195.
Marketing Magazine 2018. Qantas CMO on data-driven strategy and to manage large
volumes. [online] Marketing Magazine. Available at:
https://www.marketingmag.com.au/hubs-c/cmo-qantas-interview/ [Accessed 3 Sep. 2018].
Qantas.com 2018. Fly with one of the world’s most experienced airlines | Qantas IN. [online]
Qantas.com. Available at: https://www.qantas.com/in/en.html [Accessed 3 Sep. 2018].
Wang, Y., So, K.K.F. and Sparks, B.A., 2017. Technology readiness and customer
satisfaction with travel technologies: A cross-country investigation. Journal of Travel
Research, 56(5), pp.563-577.