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Qantas PESTLE
PESTEL and Porter’s Five Force Analysis of QANTAS
Assessment 2: Report
Fiona Anderson, Assessment 2: Report
MGT330— Kym Treharne
Due Date:10 September 2014 Student Number: 11449245

Executive Summary
The following paper provides an analysis and evaluation of the current market position of Qantas and the airline industry. By assessing the company both internally and externally by applying PESTLE and Porter’s Five Force frameworks, this report will assess Qantas’ opportunities and strengths within the aviation industry. In addition to this, the report will focus on the specific resources and capabilities that enable Qantas to obtain a competitive advantage over its competitors through the use of the VRIO framework. A final analysis will be conducted to identify issues Qantas face and recommendations of how they can rectify these issues.

Contents
Executive Summary 2
1. Background 3
2. PESTEL analysis 3 2.1 Political 3 2.2 Economic 3,4 2.3 Social 4 2.4 Technological 4 2.5 Legal 4 2.6 Environmental 4
3. Porter’s Five Forces analysis 5 3.1 Competitive Rivalry 5 3.2 Entry Barriers 5 3.3 Threats of Substitutes 5 3.4 Bargaining Power of Suppliers 5 3.5 Bargaining Power of Buyers 6 3.6 Analysis 6
4. Opportunities and Threats 6
5. Resources and Capabilities 7 VRIO Analysis 8
6. Issues and Recommendations 9
7. Conclusion 9
8. References 10
1. Background
Qantas began in the Queensland outback during 1920. It was first registered as the Queensland and Northern Territory Aerial Services (QANTAS) and has since grown to be Australia's largest domestic and international airline, as well as one of the strongest brands in Australia, employing close to 35,000 personnel worldwide (Qantas, 2010).

Based out of Sydney, Qantas currently operates close to 5000 weekly flights across Australia, New Zealand, Africa, North America, South America, Europe and Asia, flying close to 50 global



References: “Aircraft Noise is Unhealthy”, (2008) Health Hype.Com. Available from http://www.healthhype.com/aircraft-noise-is-unhealthy.html (cited on 20th, March, 2013) Czemy, A (2008) Dixon, G. (2006, February 23). Qantas not afraid of competition. The Age . G.G. Dess, G.T. Lumpkin, M.L. Taylor, A.A. Thompson, and A.J. Strickland III, Strategic Management (Boston, McGraw Hill, 2004) pp. 141-148. Harrison, M. A. (2005). The Blackwell Handbook of Strategic Management. Wiley-Blackwell. Herald, S. M. (2011, July). Airlines count the costs of carbon tax. Business Day , 1-2. Issa, Tomayess and Chang, Vanessa and Issa, Theodora. 2010. Sustainable business strategies and PESTEL framework. GSTF International Journal on Computing. 1 (1): pp. 73-79. Johnson G.  Scholes K.  Whittingham W. 2008. Exploring Corporate Strategy. 8th edition. Prentice Hall Jones, C Mouawad, J (2010). Pushing 40, Southwest Is Still Playing the Rebel. New York Times. Available from http://www.nytimes.com/2010/11/21/business/21south.html?pagewanted=all&_r=0 (cited on 20th, March, 2013) Nuguid, A Porter, M. (2008). The Five Competitive Forces that Shape Strategy. Harvard Business Review , 78-91. Thompson, A. and Gamble, J. (2012). South West Airlines in 2010: Culture, Values, and Operating Practices. Case 13. In Essential of Strategic Management. McGraw Hill. Qantas. (2010). Qantas Fact file. [Online] Available from: http://www.qantas.com.au/infodetail/about/FactFiles.pdf Qantas Qantas. (2013). Working Towards Our Vision. Sydney: Qantas Group.

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