This report is an effort to shed light on the major management issues existing in a virtual business that operate in Brisbane, Australia and deals with the selling of airline tickets of Qantas Airways online. For that purpose a detailed analysis of business operations at business is undertaken to have an idea about the hope holes existing in the business strategy of the company. In addition to this after having judged the main issues with business operations of business a set of recommendations will be presented that can help the company in overcoming its core issues. In addition to low costs and greatest productivity another positive aspect contributing to increase the share of Virgin Australia in market is the presence of financially strong airline backers for the company. These backers are already deep pockets. Qantas on the other hand is struggling extremely hard to attract investors by trying to enhance a level of investor confidence.
Long service leave is one of the attribute regarding labour market regulations that has contributed to decrease the profitability of airline and to make it difficult for airline related virtual business to devise cost saving measures.
Keeping in view the above discussed matters it can be concluded that the position of virtual business has been weakened in recent past due to many issues faced by the company. These issues have contributed to hurt the position of company because the airline with which it deals is unable to compete with Virgin Australia that is considered to be a major competitor of Qantas. The organization culture prevailing in virtual business is such that is limiting the scope of further developments and innovations in the company (Allroggen, 2015). The high costs faced by the company due to its defective salary policies and work practices make it hard for the firm to cut down its fares in order to attract new customers and to retain the existing ones. In addition to this pressure is rising on this business due to reduction in fares by all the major airlines of the world. The customer experience with an airline can only be enhanced if reduced prices with enhanced level of qualities are offered to customers. The major threat for long run success of the business is its inability to cut down fares.