The answer lies in finding something you can do well at and specializing in it, also knowing when to move on to something else is important.
Japan in the 1960s was a low cost manufacturing center that moved onto higher quality and prices. China is having to go upmarket as wages are increasing and countries such a Vietnam and Bangladesh are undercutting it at the lower level of the manufacturing spectrum.
QF will never be a major hub airline due to it's location and cost base, they need a selling point to persuade people to pay a little more than the lowest price they can find on Skyscanner. Safety, reliability, punctuality, good cabin fit out etc might make someone willing to pay an extra $150 for a return flight to London over which ever airline is currently having a special fare.
Being better if you can't be cheaper and cheaper if you can't be better is the way to go.