Strategic Management on Qantas Airway
Strategic Management BUSM 3125
Group Assignment 2
Hao Ming Lee – S3301727
Table of Content
Executive Summary 3
Background Information 4
SWOT Analysis 5
PESTEL Framework Analysis 6
Porter’s Five Forces Analysis 9
Qantas’ Strategic Capabilities 12
VRIN Model …show more content…
As a result, politicians are able to apply this policy as a barrier to entry for new competitors in the industry. Hence, this gives national airlines a competitive edge. Nevertheless, governments are starting to loosen access restrictions to individual routes.
The greatest concern in the aviation industry is oil prices. As fluctuation of oil prices is extremely difficult to predict, airlines are having a hard time controlling fuel costs. Also, in recent years, oil prices have been steadily increasing, which causes a rise in airline operation costs to a critical level. As a result, commercial airlines would be obliged to increase the prices of tickets in order to maintain a sustainable profit margin.
People are now traveling so much more as compared to during the 20th century as a direct consequence of globalisation. In fact, the aviation industry has contributed to the integration of different cultures by making traveling more affordable, simpler and less time consuming.
Due to rapid technological advancement and intense competition among aerospace manufacturers, commercial airlines are now able to use more efficient aircrafts. Airbus has recently created the A-380 which boasts to be a highly efficient plane that can hold 525 passengers and that the use of this plane will increase the returns of the airline by 35% (Airbus 2008). On the other hand, Boeing has created the 787 Dreamliner which