PESTEL and Porter's Five Force Analysis of QANTAS

Assessment 2: Report

Fiona Anderson, Assessment 2: Report

MGT330- Kym Treharne

Due Date:10 September 2014 Student Number: 11449245

Executive Summary

The 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.

Contents

Executive Summary 2

Background 3

PESTEL analysis 3

2.1 Political 3

Illustration of Porters 5 Forces. Illustrates arti...

English: Qantas' Boeing 737-800 'Yananyi Dreaming'...

English: qantas

2.2 Economic 3,4

2.3 Social 4

2.4 Technological 4

2.5 Legal 4

2.6 Environmental 4

Porter's Five Forces analysis 5

3.1 Competitive Rivalry 5

3.2 Entry Barriers 5

3.3 Threats of Substitutes 5

3.4 Bargaining Power of Suppliers 5

3.5 Bargaining Power of Buyers 6

3.6 Analysis 6

Opportunities and Threats 6

Resources and Capabilities 7

VRIO Analysis 8

Issues and Recommendations 9

Conclusion 9

References 10

1. Background

Qantas 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,