Porter’s Five Forces Model Analysis on Qantas Airlines

Running head: STRATEGIC MANAGEMENT
Strategic Management
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STRATEGIC MANAGEMENT
Introduction
The essay helps in the overall analysis of the Porter’s Five Forces Model which will be
applicable in the overall identification of the different capabilities of the same in the organization
efficiently. The usefulness and limitations of the Five Forces Model are required to be adopted
and analyzed in such a manner which will help in determining the competitive environment of
the organization and this affects the overall profitability. This model was created in order to
analyze the overall attractiveness of the industry along with the likely profitability as well. Porter
tried to keep a close eye on the rivals and their moves in order to gain knowledge.
Brief summary of Porter's Five Forces Model
According to Lin, (2017), the Porter’s Five Forces Model Analysis helps in determining
the competitive environment of the organization which affects the overall profitability of the
organization. The bargaining power of the buyers along with the different suppliers affect the
overall ability of the company in increasing prices along with managing the costs efficiently. The
five forces are inclusive of the following:
The threat of entry of the different competitors is helpful in analyzing how difficult it is
for the different new entrants to compete with the existing players in the market along with
identification of the different barriers to enter into the firm (Qantas.au.com, 2018).
The threat of substitutes is helpful in analyzing how easy it is for the companies to
substitute the different products along with services especially in a cheaper rate.
The bargaining power of suppliers is the technique which is helpful in analyzing how
strong the overall position is for the different buyers wherein they can work in a collaborative
manner to order the large volumes (Qantas.au.com, 2018.

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STRATEGIC MANAGEMENT
Competitive rivalry is the other technique in which this can be analyzed that whether
there is strong competition between the existing and the new players and to identify whether one
player is dominant in nature in the entire competitive business environment.
The bargaining power of the buyers is the technique through which the position of the
customers is required to be analyzed whether it is strong in nature as they can move on to other
companies which are offering similar products at a less price (Qantas.au.com, 2018.
Application of Model
Porter’s Five Forces Model helps in analyzing the different applications of the same on
the airline industry. There are different important factors of the Porter’s Five Forces Model
which is inclusive of the different terms which will be applicable for the overall airline industry
inclusive of the Qantas Airlines.
Bargaining power of the buyers is high in the Qantas which falls under the airline
industry wherein this can be seen that there are various options available to them which provide
the premium class services along with other low cost airlines and this increases the buying and
purchasing power of the individuals (E. Dobbs, 2014).
Bargaining power of the suppliers in Qantas Airlines is low as there are large numbers
of suppliers who offer similar kinds of services and in case of Qantas, this is low as the major
competitor of Qantas is Virgin Airlines and this affects the overall efficiency of the company
(Yunna & Yisheng, 2015).
Threat of the different substitutes in Qantas Airlines is low in respect to the overall
airline industry. This can be seen that the mode of air travelling is faster in nature in comparison
to the different other modes of travelling by rode. There are different other modes of