Porter's Five Forces Analysis of Qantas Airways

STRATEGIC
MANAGEMENT
Running Head: STRATEGIC MANAGEMENT 0

STRATEGIC MANAGEMENT 1
Table of Contents
Introduction......................................................................................................................................2
Porter’s five forces model................................................................................................................2
Application of model.......................................................................................................................2
New entrants threat......................................................................................................................2
Suppliers bargaining power.........................................................................................................3
Buyers bargaining power.............................................................................................................4
Threats of substitute.....................................................................................................................4
Rivalry.........................................................................................................................................4
Usefulness and limitations...............................................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

STRATEGIC MANAGEMENT 2
Introduction
The national flag carrier of Australia is Qantas airways. The nickname of the organization
is "The Flying Kangaroo" (Hoon, 2012). This organization is considered as the world’s
prominent long-distance airline. Qantas also knows as the strongest brand in Australia
(Arjomandi, 2019). I will discuss Porter's forces model to compare the competitors. I will
analyze the biggest competitors with the adaption of strategy. This essay will provide a deeper
insight into the decision of investment by analysis of financial performance. In this essay, I will
also cover the discussion about the application of the model with the limitation and usefulness.
Porter’s five forces model
Levers of profitability can be evaluated by the strategic management tool knows as a
porter five forces analysis. This organization has defined the ways of doing business in the
industry of transportation. Qantas has the stock market ticker and listed in the Australian security
exchange (Manteghi & Zohrabi, 2011). As a manager, my objective will be to comprehend the
five modest forces that influence profitability. The strength of these forces differs across the
business to business that means each business is different towards attractiveness and
profitability. The information analyzed using porter's five forces used by the strategic planners of
Qantas to make strategic decisions. A weaker force of factors means greater profitability and a
stronger force of factors means lower profitability.
Application of the model
New entrants threat
In transportation new competitors bring innovation. The way of doing the new things by
organizations will put pressure on this Qantas by lower pricing strategy, reducing costs, and