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Qantas Airlines: Five force Analysis
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Qantas Airlines – Five force Analysis
Introduction
Qantas airlines is one of the biggest airlines of Australia which was established initially in Queensland and Northern Territory Aerial services. The company serves to the International as well as domestic market.. Apart from the airline services, the company also provide different support activities to the target customers. The major countries where the company operates internationally includes: Australia, New Zealand, Asia, North America, South America, Africa, and different European regions. (Annual Report 2017)
There are six major segments of the company and its operations which includes: Qantas Domestic, Qantas International, Jetstar Group, Qantas Loyalty, Qantas Freight, and Corporate. In this paper we will analyse the five forces on the Qantas Airlines.
Brief introduction of Porter’s 5 force model
Michael Porter’s five force competitive forces is one of the strategies that was proposed by Michael Porter, to analyse the forces that influences working of the company (Grundy, 2004). The five force model helps in the strategic management of the company. There are five major factors which is analysed by this model which includes: the bargaining power of the buyers, the bargaining power of the suppliers, competitive rivalry, threat of the substitutes and the threat of the new entrants. The five force model also helps in applying systematic thinking and analysing the competitive rivalry. The competitive rivalry is one of the main things that needs to be analysed. The five force model application was also used to long run return of the company on the basis of the forces of the company.
The application of the five force model also helps in in analysing the environment with the input and output aspects of the industry. With the help of the five force model, the manager can help in...