Comprehending Porter’s Five Forces Model in Qantas Airlines

This reflective report discusses the application of Porter’s Five Forces model in Qantas Airlines, evaluating its usefulness and limitations. It provides a brief summary of the model and its impact on the industry.

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Table of Contents
Introduction................................................................................................................................2
Brief summary of Porter’s Five Forces model...........................................................................2
Application of the model............................................................................................................3
Usefulness and limitations.........................................................................................................4
Conclusion..................................................................................................................................4
References..................................................................................................................................6

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Introduction
This reflective report is effective in comprehending Porter’s Five Forces model. Porter’s five
force model is effective in evaluating the situation of industry in the specified country. It will
also lead to making a favorable decision about the investment in targeted place. This report
will discuss the application of Porter’s Five Forces model in Qantas Airlines. It will also
demonstrate the usefulness and limitations in the context of Qantas Airlines. Lastly, it
discusses the whole report in a concise form.
Brief summary of Porter’s Five Forces model
I observed that Porter’s Five Forces model is effective in comprehending the situation of a
specified country. This method is effective in evaluating the attractiveness of the industry. It
is evaluated that porters could lead to the organization for evaluating different factors that
might impact on the business atmosphere (Takata, 2016). I gained my depth understanding
about porters five force model, which will lead to making the decision about the
organizational task Porter determined five forces, which could offer an opportunity to get
higher competitive benefits. It is effective because if you comprehend the forces the
atmosphere and industry, which could affect the overall profitability of the firm. It could also
facilitate to make the approach accordingly. For illustration, the organization could make fair
benefit and enhance the possibilities of getting a favorable result. In this, I observed that there
are different factors that are considered in porters five-force models like bargaining power of
buyer, bargaining power of suppliers, the threat of new entrants, the threat of substitutes, and
rivalry among existing competitors. These factors lead me to make the decision accordingly
and give my best contribution to the organization (Takata, 2016).

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Application of the model
The Porters five-force model is effective in making the industrial decision in the context of
current issues. The following factors are considered at the time of evaluating the industrial
situation of Qantas Airlines:
Bargaining power of buyers
In Australia, the bargaining power of the buyer is higher due to many opinions to select from
like lower cost travelling, premium class travelling, and less time travelling. Many Airline
organizations provide these services as it increase the buyer power of purchasing.
It could also be demonstrated that consumers could easily switch on another brand without
any switching coast. The bargaining power of buyer evaluation will be effective for the
organization because it enables to comprehend how much the Qantas Airlines services will be
effective in getting competitive benefits.
Bargaining power of the Supplier
The bargaining power of suppliers is lower because there are large numbers of suppliers that
provide similar goods an services. The evaluation of this factor could lead to me for getting
the information towards the supplier’s situation. It demonstrated that Qantas Airlines could
make its unique image in the marketplace and get higher competitive advantages (Santos, et
al., 2017).
The threat of new entrants
The evaluation of threat could be effective in evaluating the threat of competitors in the
marketplace and supports to obtain reliable information about the research matter. This
evaluation demonstrates that there are lower threat entrants of Airlines organization due to
the higher initial cost and lower possibilities of getting competitive benefits. Thus, it is
addressed that Qantas Airlines could get higher benefits in this industry if a company will
make some unique features in their services (Aithal, 2016).

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Threat of substitutes
Qantas Airlines could evaluate this factor due to comprehend threat of substitutes and making
a favorable decision in the same industry. The threat of substitutes is higher, which could
decline the possibilities of getting higher competitive benefits. Qantas Airlines could use
product differentiation strategy facilitates and making their unique image in the marketplace.
Qantas Airlines could also get benefits in this industry by deeply evaluate the situation of
substitutes of Airline in Australia (Mathooko & Ogutu, 2015).
Rivalry among competitors
From the evaluation, it is found that Qantas Airlines could evaluate the rivalry among
competitors as it could be effective in getting information about the existing competitiveness
of the market. It is examined that this factor leads to Qantas Airlines to get higher
competitive advantages in limited time and cost. Moreover, there is quite higher competition
in the existing market that directly impacts on the overall outcome. It is also found that
Qantas Airlines could use digital marketing tool and promote their goods and services in the
specified market, which could facilitate to the firm for getting reliable data towards the favor
of the firm (Adi, 2015).
Usefulness and limitations
This method is effective to deeply evaluate industry situation of Airlines and facilitates to
make a favorable decision in the context of the organizational decision. There are certain
approaches that are used by Qantas Airlines like marketing mix strategy, product
differentiation, digital marketing, and stakeholder management approach. These methods
support to Qantas Airlines for increasing their competitive market growth and sustain their
position in the marketplace. The marketing mix strategy will lead to effectively promote the
products and service of the company and give the opportunity to get the competitiveness. In
addition, it is examined that the stakeholder management approach leads to the firm to

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directly manage the relationship with the stakeholders and supports to make a reliable
decision (Zhao, Zuo, Wu, Yan, & Zillante, 2016).
Conclusion
With respect to the above interpretation, it can be summarized that the porters five force
model is effective to deeply evaluate the industry attractiveness and make a reliable decision
in the context of the organizational goal. Through this model, the organization is capable to
understand the situation of industry in the specified market. It can also be summarised that
the organization should use the marketing mix and stakeholder management to deal with the
issues of organization and sustain its position in the marketplace. These strategies will also
facilitate to increase the competitive market of the firm.

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References
Adi, B. (2015). An evaluation of the Nigerian telecommunication industry competitiveness:
application of Porter's five forces model. The world, 5(3), 15-36.
Aithal, P. S. (2016). Study on ABCD analysis technique for business models, business
strategies, operating concepts & business systems. International Journal in
Management and Social Science, 4(1).
Mathooko, F. M., & Ogutu, M. (2015). Porter’s five competitive forces framework and other
factors that influence the choice of response strategies adopted by public universities
in Kenya. International Journal of Educational Management, 29(3), 334-354.
Santos, R. R. D., Melo, F. J. C. D. M., Claudino, C. N. D. Q., & Medeiros, D. D. D. (2017).
Model For Formulating Competitive strategy: the supplementary health sector
case. Benchmarking: An International Journal, 24(1), 219-243.
Takata, H. (2016). Effects of industry forces, market orientation, and marketing capabilities
on business performance: An empirical analysis of Japanese manufacturers from 2009
to 2011. Journal of Business Research, 69(12), 5611-5619.
Zhao, Z. Y., Zuo, J., Wu, P. H., Yan, H., & Zillante, G. (2016). Competitiveness assessment
of the biomass power generation industry in China: A five forces model
study. Renewable Energy, 89, 144-153.