Summary Globalization has promoted the growth of trade and tourism industries. This has increased demand for travel and has benefited the airlines in many ways. Qantas has been a successful airline that has grown to become internationally recognized. It serves both domestic and foreign markets. However, by 2009, the airline began experiencing financial constrains due to competition. It was also affected by natural calamities like swine flu that discourage travellers. It is possible for this airline to restore its position in business by maximizing on the available resources and expanding its markets. The airline can serve both low and high end markets. This can be achieved by merging with other airlines and differentiating its markets to target each market with the right product. Given that the airline has a wide range of products; it has an added advantage over competitors. This can be used to plan strategically and promote the company’s revenue generation. As the international business activities increase, the demand for travel also increases. This makes airline a favorable business for investors. Background Information The airline industry has benefited from globalization and the growth that has been experienced in trade and tourism. The growth in this industry is associated with the global economy that has improved the income situations for most of the middle families. Competition is intense in the airline industry since the growing demand for travel has attracted many investors. Qantas started in 1920 with eight aircrafts that flew internationally until 1942. It was later nationalized until 1992 when it became a private organization. Its shareholders consisted of the British airways and the Australian public. It grew in capacity and formed the Oneworld alliance with other airlines for it to share lounges, joint bookings, and numerous flyer points that improved the quality of services offered by airlines. The birth of Virgin Blue brought a lot of competition and Qantas launched a low cost airline, Jestar, which could compete with Virgin Blue at the same level. Qantas expanded and grew in capacity. It has been awarded various awards for being among the best airlines in the world. Cutting cost became a major aspect in the supply chain, proposing merging and concentrating on the core business to overcome the economic crises. The airline’s profits are going down, and the future is unpredictable especially with the current set backs like the swine flue outbreaks (Hanson, Hitt, Ireland & Hoskisson, 2011). This report will discuss and analyze the issues affecting Qantas airline. It will establish a strategy in which the company can save itself from collapsing, as well as highlight the relevance of the issues being implemented. Qantas’ core competencies Qantas has been growing in capacity due to some of its aspects that keep it ahead of its competitors. For instance, the airline operates other services besides airline and travel. These include handling baggage and check-in services and passenger lounges and catering services (Hanson, Hitt, Ireland & Hoskisson, 2011). This is a strong point for this organization because the extra forms of business are related to travelling, which is the core business. The airline has an advantage of concentrating on all travel needs of its passengers into one package. This way, it is easy for Qantas to establish customer loyalty because th