This is one of the most important ways that the capabilities of an organization can be measured. There are several methods of achieving this. These are, taking advantage of economies of scale, using the company’s experience to increase efficiency and lower costs of operation, redesigning products and fetching for low costs of supply. Qantas Airlines understand the need for cost effectiveness. However, the company takes a lot of precautions to ensure that it does not water down its services. As will be observed, the company’s target is to have services that are favorable to both the organization and the customers. To take advantage of the economies of scale, Qantas purchase Australia Airlines (Qantas, 2013). The aim of this move was to take advantage of the emerging markets in Asia. The move was productive as Qantas increased their market share in the Australian International Travels. To take advantage of the need for a low price domestic flight operator, Qantas purchased Jetstar. While Qantas remained a high cost option for traveling, the company tapped into the low cost air travel market through the purchase of the two companies. Also, at Qantas, the employees are paid above average wages. This ensures that the employees stay at Qantas for a longer period of time. The experience brought into the company means that the operations of Qantas run smoothly with minimum overheads.