Business Analysis and Valuation of Qantas Airways

BUSINESS ANALYSIS AND
VALUATION
Qantas Airways

INTRODUCTION
The main aim of this report is to take into consideration the analysis and valuation
of the business of Qantas Airways (Qantas). More specifically, this report
considers the five forces analysis and SWOT analysis of Qantas. After that, this
report involves analysing the corporate strategy and certain financial regulation of
the company. After that, the report considers the analysis of the financial
performance of Qantas in order to provide the recommendation

FIVE FORCES ANALYSIS
 Bargaining Power of Buyers: Qantas has to face high bargaining power from the
customers due to the presence of many airline companies in this Australian airline sector.
They provide affordable travelling cost, luxury and others.
 Bargaining Power of Suppliers: The presence of numerous suppliers can be seen in the
Australian airline industry providing the required materials to the airline companies. For
this reason, Qantas faces low bargaining power from their suppliers (E. Dobbs 2014).
 Threat of New Entrants: When entering into the Australian airline industry, the new
companies are needed to make huge investments and have to comply with many
regulations from the government. Hence, this threat can be considered as low for Qantas.

FIVE FORCES ANALYSIS
 Competition among Existing Competitors: The presence of certain large
airline companies can be seen in the Australian airline industry like Virgin
Airline and others that provide tough competition to Qantas. For this, this
threat can be considered as high for Qantas (afr.com 2019).
 Threat of Substitutes: Passengers can travel in the fastest possible manner
through airlines as it is the quickest way of travelling. For this, Qantas face
low threat related to the substitute products.