Qantas SWOT and PESTLE Analysis

The SWOT/TOWS analysis is a framework, utilized to assess a company's competitive stance by identifying its internal strategic factors like strengths and weaknesses, external strategic factors like opportunities and threats. Precisely, SWOT analysis is a primitive evaluation model that evaluates the internal and external factors and their influences on the company's micro and macro environment.
Being one of the oldest, highly experienced and largest official airlines of Australia and ‘Regional airline of the year’ award winner, Qantas relishes the core competency of signifying the strongest brand of the country. The Qantas Group declares that it is a notable brand in Australia for its ability to provide excellent service, great customer satisfaction, safety, reliability and outstanding engineering and maintenance. These factors reckon for a competitive advantage that Qantas fancies over its competitors from the aviation industry.
The official flagship carrier of Australia, Qantas has the largest domestic and international fleets. The Qantas group owns the highest market share in Australia with a 38.2% dominance of Qantas Airways and 19% from that of Jetstar Airways. The firm presence of the brand in the Australian market is a key strength of Qantas. Apart from the strong domestic presence, factors like partnership and alliances with reputed airlines, substantial global presence, robust brand name, the largest number of lounges pan Australia, high customer satisfaction, premium facilities like luxurious travel experience, customized cuisines, SMS alerts for check-ins etc., are the greatest strengths of Qantas. Some of the key areas of improvement that signifies the weaknesses of Qantas are the low margins in international flights, issues with associations, difficulties in long distance flights and labor diminutions affecting the brand operations.
Qantas is promoting tourism across Australia; this is a great opportunity for the airline as there is an exponential increase in the number of travelers for both vacation and business purposes. Acquisition and mergers with top airlines can prove to be low hanging fruits with long-term opportunities. While fluctuation in fuel price continues to be a major threat to the entire aviation industry, Qantas also faces a threat of stiff competition from airlines, especially Virgin Airlines, in terms of market share, cheaper price, and better offerings.
The SWOT/TOWS Analysis for Qantas Airways is presented in a nutshell below in the form of a SWOT Matrix followed by the detailed analysis:

Strengths	Weaknesses
1. Strong dominance in the Australian market 2. Strong partnership with Emirates provides a competitive edge 3. Strong presence in emerging markets, like Asia 4. Strong advertisements and public relations management 5. Continued focus towards expenditure on innovation and technology	1. Highly affected by conflicts and terrorist acts across Middle East and Europe
Opportunities	Threats
1. Entering into the SME loyalty market 2. Partnership with leading airlines 3. New distribution capabilities to enhance flight experience around the world 4. Expansion of the Qantas loyalty programs	1. Rising threats due to increasing competition 2. Declining profits due to the impact of Covid-19 3. Increase in fare prices due to rising fuel prices

Detailed SWOT Analysis of Qantas

The PESTLE / STEEPL / PEST analysis report is a structure to analyze the consequence of external factors on the macro environment that influences the business of the Qantas Group. The PESTLE analysis is a beneficial technique to analyze the present external factors like political, economic, social, technological, legal and environmental and their effect on Qantas’ business model, growth trajectory, its business case, and market strategy.
Aviation is one of the highly monitored industries in the world. The flagship carrier of Australia, Qantas is deeply influenced by the political and legal factors. The government policies have a huge impact on the entire aviation industry. A recent case study shows that political uncertainty in the Middle East and political turbulence in Bangkok had a notable effect on the operations of Qantas also impacting its revenues.
As a pre-eminent brand of Australia and a national carrier, Qantas group has a significant contribution to the economic growth of the nation. However, there are certain external economic factors like fluctuation in oil price, inflation rates, economic instability etc., can alter the performance of the company. Airlines are high in demand with trending socio-culture amongst audiences opting for a better travel lifestyle. Qantas is the most recognized brand globally; potential travelers have accepted Qantas to the fullest for the superior quality of service and the attractive concession in tickets it offers.
Improvements and progressions in technology have been a boon to the airline industry. From booking tickets to check-ins and check-outs, it's now convenient for the passengers to experience a hassle-free journey. Qantas has included new technology-based aircraft in its portfolio that are significantly contributing to the business growth.Environmental awareness is a key challenge the entire world is addressing; Qantas is taking up the social and environmental initiatives with the ‘Qantas future planet’ program that aims to address aspects like better aircraft, fuel efficiency, sustainable products, etc.
The PESTLE / PESTEL/ STEEPL Analysis of Qantas is presented in a matrix below, followed by detailed analysis:

Political	Economical
1. Government support to Qantas important in the cyclical airline industry	1. Liberal aviation policy by the Australian government has hurt the growth prospects of domestic airlines 2. Rising fuel prices may impact flight’s fare prices
Social	Technological
1. Being Australia’s national carrier, it enjoys wide public support and local customer base.	1. Investments in technology and innovation to enrich customer experience 2. Adoption of machine learning to determine best routes
Legal	Environmental
1. Involvement in lawsuits impact reputation	1. Jet fuel contributes to more than 95% of Qantas' overall emissions 2. Promoting sustainability through consumers 3. Growing use of biofuels in the aviation industry

Detailed Pestle Analysis of Qantas

1. The SWOT and PESTLE analysis report of the Qantas Group manifests a comprehension of the obscure internal and external factors influencing the brand and its operations.
2. The SWOT analysis report constitutes all the factors that represent the major strengths and weaknesses of Qantas
3. The report confers intelligence on the external analysis, comprising the opportunities which can be consolidated to achieve worldwide growth and expansion. It also talks about some relevant threats to the company that threatens to hinder growth and expansion.
4. Core competencies relished by the flagship carrier of Australia, that devises a competitive advantage for Qantas, over its rivals and competitors from the airline industry
5. Pestle analysis of the aviation industry gives an accurate depiction of the external factors and its influences on the industry and extensively on the Qantas Group.
6. A detailed presentation of how influencers like political, economic, social, technological, legal and environmental factors have influenced Qantas ’s innovative business model.
7. Perforations into Qantas business diversification, extracting its key business segments and highlighting its major competitors
8. Critique of the acquisitions, mergers, capital raising, equity transactions, alliances or partnership ventures that Qantas subscribed with deal valuations and the business objectives or goals that were achieved alongside.
9. Synopsis of Qantas’ founders, its corporate headquarters, owners & stakeholders, and revenue jumps, concurrently with the overall company analysis to gain information about company profile, number of employees, business model, business plans and marketing strategy.
10. Interpretation of Qantas’ USP or unique selling proposition, mission statement and vision statement that has set a benchmark in the Australian airline industry
11. Insights into Qantas’ business model, along with further categorization and analysis of key business segments and business case study.
12. Crisp synopsis of the Qantas’ share price, key performance indicators, success factors, value proposition and core competencies