Porters 5 Forces and Hofstedes Cultural Dimension

Table of Contents

Executive Summary 1

Introduction 2

Porter’s Five Forces and Competitive Strategy

Threat of Rivalry 3

Threat of New Entry 4

Threat of Substitute Products 5

Bargaining Power of Buyers 6

Bargaining Power of Suppliers 7

Recommendation of Porter’s Five Forces Strategies 8-9

Hofstede’s Cultural Dimensions 10-13

Recommendation of Hofstede’s Cultural Dimensions Model 14-15

Competitive Strategies

Conclusion 15

Reference List 16-18
1.0 Executive summary

The purpose of this report is to determine the suitability of Safety Airlines Ltd. expansion of business into Australia. The Porter’s Five Forces is used as a guideline of the competitive nature of the Australian domestic airline industry. An analysis of the airline industry context in Australia is made where the threats are identified and what strategies are to be employed to determine the competitive advantage for Safety Airlines Ltd. From the analysis, Porter’s Five Forces showed that the threats are low. This indicates that the market in Australia is attractive for the company. It is recommended that Safety Airlines LTD should adopt the cost leadership and differentiation strategy in order to complete with Australia domestic airline company successfully.

The Hofstede’s Cultural Dimensions is employed to analyze the similarities and differences between the Australian and French culture. An in depth analysis of the Australian culture is fundamental for the understanding of the managers of Safety Airlines to bridge the cultural gap and determining the need to modify one’s managerial style. In addition, Hofstede’s cultural dimensions show that there is just a small difference between the culture of Australia and France. Moreover, some recommendations are adopted based on the analysis and