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Business Valuation Assignment | Business Analysis

   

Added on  2020-05-16

13 Pages2643 Words82 Views
Business Valutaion and Analysis2017

1By student name ProfessorUniversityDate: Januray 23 , 2018.1 | P a g e

2ContentsQuestion a...............................................................................3Question b...............................................................................4Question c...............................................................................4Question d...............................................................................5Question e...............................................................................9Question f...............................................................................9Question g...............................................................................9Refrences..............................................................................112 | P a g e

3Qantas airline is one of the largest airline companies in Australia and has also growninternationally in the recent times. It started its operations in 1920, and today it operates more then5000 flights. It is one of the strongest trade names in Australia and in times to come it will grow andexpand overseas also. A brief analysis on the financials of the company and the overall strategyevaluation is given below.a.The Porter five forces analysis of the Qantas airlines is as follow-Bargaining Power of the Suppliers- The suppliers have the highest bargaining power becausethey have the option to choose from a variety of airlines that is operating in the market. They can go forany premium services that are offered at low prices. Hence this puts a lot of pressure on the profitabilityof Qantas. It makes it more prone to consumer discretion[ CITATION Abb17 \l 1033 ].Bargaining Power of the Suppliers- There are large number of supplier in the airline industry thatoffer raw material to these companies. The suppliers are often in a dominant position because thecompanies depend on them for the raw material that they offer. The bargaining power of the suppliershave a negative impact on the profitability of the company in the form of increased prices and lowrevenues.Threat of substitute- The threat of substitute is lower in air form of transport. People mostlyprefer travelling from air as it takes less time and helps in travelling longer distance. Thus, for Qantas thethreat of substitute is very low[ CITATION Ale16 \l 1033 ].But with large scale development, other modesof transport have also developed and people are often choosing the same because they are relativelycheaper. This is a factor that the company needs to consider.Rivalry among existing firm- In the international air transport market, the company is havingrivals in the form of Emirates, Virgin Australia and Air Asia. The competition is so severe that itsometimes causes the company loss of operations. In the domestic front also the company faces severecompetition from many renowned airlines and needs to be actively functioning to curb the same.Threat of new entry- In case of airline industry, there is a lower threat of new entrants, given tothe fast that it requires huge amount of investment to start operations in this field. So smaller3 | P a g e

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