Strategic Analysis of Australian Industries: Hospitality, Tourism, and Banking

This report provides a comprehensive analysis of three key sectors in Australia: hospitality, tourism, and banking. It utilizes strategic management tools such as PESTLE, SWOT, and Porter's Five Forces to examine the external and internal environments of these industries. The analysis delves into the political, economic, social, technological, environmental, and legal factors impacting each sector, highlighting strengths, weaknesses, opportunities, and threats. The report also explores the competitive landscape within each industry, considering factors like supplier and customer bargaining power, threats of new entrants and substitutes, and competitive rivalry. This in-depth analysis provides valuable insights into the current state and future prospects of these vital sectors in the Australian economy.

HI6006 ASSIGNMENT 1
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Contents
Introduction......................................................................................................................................3
PESTLE Analysis........................................................................................................................4
SWOT analysis............................................................................................................................6
Five Forces:.................................................................................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
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Introduction
In this report, there is an analysis of the three sectors in Australia. This essay provides a
complete discussion regarding the various strategy development tools that are used in the
business application and development. In this there is an analysis of PESTEL, SWOT and
Porters Five Forces approach used in the working of the industry. The industries which are taken
into consideration are in relation to the various areas such as hospitality, tourism, etc. The
effective analysis helps in analysing the present situation of the company and makes estimation
accordingly.
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PESTLE Analysis
Strategic management agrees businesses to understand the internal and external environment in
which business operates and functioned. These tools allow companies to avoid issues in the
market and get benefits of coming opportunities. The tool identifies the external factors which
affects the Common wealth Bank. The factors can be opportunities that give a competitive
advantage, and can be threats that are so severe which must close the banking business. The
analysis is essential for strategic management of the industry to examine the political, social,
economic, technological, environmental and legal factors which affects the corporation (Newton,
2014). This analysis helps for a business that is considering entering into a new market, so the
decision is good or bad. The PESTLE analysis of Common Wealth bank is given as follows:
Political factor: The regulatory framework of the company is very strong, the government
policy of the country intervene the industry and economy. For example, government imposes
taxes which affect the buying power of customer and profit after tax, the budget and budget
measures, changes in the interest rates.
Economic factors: This factor affects business covers with interest disposable income, inflation,
international exchange, international trade etc. The common wealth has more savings, more
information related to the capital, increases the production of services and goods, more banking
channels etc (Aithal, 2016).
Social factors: The common wealth affects the social factors such as cultural aspects,
investment, structure and family size, saving attitudes in banks, population rate, beliefs and faith
of people affects the services of bank.
Technological factors: In today’s changing world technology innovation greatly influences the
functions and operations of bank positively and negatively. How bank spend on development and
research, mobile banking application, credit cards, internet banking, internet infrastructure of the
bank etc. (Aithal, 2016).
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Environmental factors: It also called as ecological factors which affects the surrounded
environment. Transition to a low carbon and efficient resource future is underway which affects
the Common wealth banks that are required to comply with (Ho, 2014).
Legal factors: it includes current and implied laws of government, legislation that affects the
banking business. Managers of the bank consider all national and international laws where
business operates. Some factors are to be considered consumer protection law, banking
regulations, regulatory obligations, data protection etc. (Ho, 2014).
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SWOT analysis
This analysis helps in the development of competitive scenario of the Woolworths Limited.
This also helps in the analysis of the present situation and the trends and frame policies
accordingly. The analysis is presented there under:
Strengths
 It is considered to be one of the main
retail sectors in Australia
 It holds the huge share of the market
 It offers a variety of products and the
services
 The company offers the CSR
programs and the initiatives which
help in enhancing the market share
 There is a strong assurance of the
environment and the sustainability.
 The number of stores is more than
800 and 30000 employees (S & P,
2017).
Weaknesses
 A late entry in terms of the online
retail market
 Reduced international presence
 It has a negative global presence
when it is compared to the
competitors
 It has failed to sustain the benefits of
competitive advantages
 Gaps in the range of the products sold
by the organisation
 Problems in the product demand
forecasting
Opportunities
 Effective customers relationship
management
 Emerged economies and the
expansion in the international market
 Effective promotion with the help of
Threats
 Discounting wars with the companies
such as Coles.
 Reduced growth in the online
industries in Australia.
 Intense competition from the variety
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social media.
 Growth with the use of methods such
as franchisee or the strategic
acquisitions.
 Taxation policy and reforms provide
the company with a chance to
enhance its profit share
 New trends help in the enhancing the
area and sectors of the company
of sectors
 Increased costs from both the food
and non-food sector which affects the
business growth
 Problems in the regular supply of the
products which are innovative
 Increase in the costs associated with
the raw material acts as a threat
 Fluctuations from various laws and
the policies affect the present business
of the economy (Bohari, et. al., 2017).
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Five Forces:
Porter Five forces model is easy but powerful development tool for understanding the business
competitive environment, and to determine the strategic potential profits of the Australian
Airlines. For example, Airlines Company can get the benefits to make strong position and
improves the weak position, by avoiding the wrong step further. This is the most popular tool of
the strategy development tool. Porter considered that Australian Airlines keeps a watch on their
competitors, but this tool encouraged the organization to look beyond the competitors actions
and search out the other factors.
Suppliers bargaining power: It means the level to which suppliers may influence the rates of
products. When there are many suppliers, purchasers can switch easily to competition due to
know any supplier to influence the rates of Airlines services. The bargaining power o supplier is
high when, there is no availability of alternatives, big suppliers in market, etc. (Fleisher and
Bensoussan, 2015)
Customers bargaining power: It means ability of customer which affects the quality and prices
of services and products of Airlines. some factors affects the bargaining power such as buyer
concentration, substitute products, trade volume, overall bargaining leverage etc. the bargaining
power is high when, substitute products don’t have high cost, consumers procure high volumes
etc. (Fleisher and Bensoussan, 2015)
Threats of new entry: When high barriers are imposed on entry into the market, then new
markets are not able to enter due to string competition and high costs. When there is low barriers
in market for new entry, then businesses gets benefits of scale economies. Possible barriers of
entry covers brand loyalty, lack of resources, government Acts and legislation etc (Grant, 2016)
Substitute’s threats: When there are so many substitute goods and services, companies are price
takers. For example, buyers analyses the prices, power of companies etc. threats cab be
determined by customers dependability on brand, up to date trends, customer relationships,
switching cost etc.
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Competitive rivalry: In this high competitive market, firms have no control and less control on
goods and services prices. Competition between existing firms can be higher in case, growth rate
is low, high barriers to exit, same size of players etc. (Grant, 2016).
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Conclusion
It is concluded from the above report that an effective analysis helps in the proper management
and the allocation of the resources in an organisation. It helps in the increased growth and the
profitability. The PESTEL analysis provides the idea about the economies current situation in
terms of factors related to economic, political forms. These factors affect the business size and
the growth. The approaches help in the solution of the various cases and formulate the
approaches according to the market share and the compatibility.
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References
 Aithal, P.S., 2016. Study on ABCD analysis technique for business models, business
strategies, operating concepts & business systems. Browser Download This Paper.
 Bohari, A.M., Hin, C.W. and Fuad, N., 2017. The competitiveness of halal food industry
in Malaysia: A SWOT-ICT analysis. Geografia-Malaysian Journal of Society and
Space, 9(1)
 Fleisher, C.S. and Bensoussan, B.E., 2015. Business and competitive analysis: effective
application of new and classic methods. FT Press.
 Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley
& Sons.
 Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic
analysis. European academic research, 2(5), pp.6478-6492.
 Newton, P., 2014. What is the PESTLE Analysis?.
 S & P, 2017. Woolworths Limited SWOT & PESTEL Analysis. Available at:
https://www.swotandpestle.com/woolworths-limited/ [Accessed on: 13.04.2018].
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