Strategic Management.

Strategic Management
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Introduction
The purpose and scope of the essay is to analyze the position of Qantas Airlines in the market
and the methods to improve the market shares. I will evaluate the external factors of Qantas
Airlines which are affecting the airline organization by using Porter’s Five Forces. Porter’s Five
Forces of Qantas Airlines is important as it will help me to understand the industrial environment
of the airline organization and assess the nature of its competitive that is faced by Qantas
Airlines. An evaluation of external actors has the potential to ensure complete analysis of the
airline regarding the level of its strategic performances so that better decisions could be
considered in future.
A Brief Summary of Porter’s Five Forces Model
The Porter’s Five Forces is an easy tool to understand the power of an organization in a business
settings. It also helps the organization to identify its strengths in the present position of
competitive market. The five forces are bargaining power of suppliers, bargaining power of
buyers, threat of new entrants, threats of substitutes and rivalry among the competitors (Moreno-
Izquierdo, Ramón-Rodríguez & Perles-Ribes, 2016). These forces determines the structure of the
industry and the competition level in the industry. Strong competitive forces are the less
profitable for the in the industry. The industry with low buyers and suppliers and new entrant but
high substitution and competitors are extremely competitive and not attractive for its low
productivity.
Bargaining Power of Suppliers - The suppliers might impact the productivity of an
organization by using pressure to reduce the quality or increase the prices.
Bargaining Power of Buyers - The buyers has the power to move from one supplier to other
supplier depending on the profit margin.
Threats of New Entrants - It is the treat where the current business can lose the market shares
due to entry of another business.
Threats of Substitutes - It is the treat of alternative products in every company. If one firm
provide the products in low cost in competition to rival firm, the profit margins will lead to zero.

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Rivalry among the Competitors - The competition among the companies can impact the
productivity of the whole industry.