Qantas Pestle Porters Five Forces Essay

2344 words - 9 pages

PESTEL and Porter's Five Force Analysis of Qantas | 10

PESTEL and Porter's Five Force Analysis of QANTASAssessment 2: ReportFiona Anderson, Assessment 2: ReportMGT330- Kym TreharneDue Date:10 September 2014 Student Number: 11449245Executive SummaryThe following paper provides an analysis and evaluation of the current market position of Qantas and the airline industry. By assessing the company both internally and externally by applying PESTLE and Porter's Five Force frameworks, this report will assess Qantas' opportunities and strengths within the aviation industry. In addition to this, the report will focus on the specific resources and capabilities that enable Qantas to obtain a competitive advantage over its competitors through the use of the VRIO framework. A final analysis will be conducted to identify issues Qantas face and recommendations of how they can rectify these issues.ContentsExecutive Summary 2Background 3PESTEL analysis 32.1 Political 32.2 Economic 3,42.3 Social 42.4 Technological 42.5 Legal 42.6 Environmental 4Porter's Five Forces analysis 53.1 Competitive Rivalry 53.2 Entry Barriers 53.3 Threats of Substitutes 53.4 Bargaining Power of Suppliers 53.5 Bargaining Power of Buyers 63.6 Analysis 6Opportunities and Threats 6Resources and Capabilities 7VRIO Analysis 8Issues and Recommendations 9Conclusion 9References 101. BackgroundQantas began in the Queensland outback during 1920. It was first registered as the Queensland and Northern Territory Aerial Services (QANTAS) and has since grown to be Australia's largest domestic and international airline, as well as one of the strongest brands in Australia, employing close to 35,000 personnel worldwide (Qantas, 2010).Based out of Sydney, Qantas currently operates close to 5000 weekly flights across Australia, New Zealand, Africa, North America, South America, Europe and Asia, flying close to 50 global destinations (Qantas, 2010).There a four major domestic airliners that have the majority of the market share in Australia; Qantas, Virgin Blue, Tiger Airways and Jetstar (Dixon, 2006). Nicknamed 'The flying Kangaroo', Qantas is the largest Australian global airlines and is a charter member of the "One world Alliance". Qantas operates domestically under 'QantasLink', which carries out 2000 regional flights weekly. They also operate their low fare airline 'Jetstar', and Qantas Freight (Qantas Airways, 2012).2. PESTLE ANALYSISApplying the PESTLE analysis on the aviation industry will help to identify the environmental influences by arranging them into six categories; Political, Economic, Social, Technological, Legal and Environmental (Issa, 2010). Future trends and requirements for change based on these trends can be identified through this analytical tool (Johnson, et al, 2008).2.1 PoliticalTerrorism has had a major affect the aviation industry. It is still a very real possibility of airplanes being hijacked or blown up in mid air and this has put a negative impact upon the industry. The...

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