2548 Words11 Pages
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
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How society is observed as it transmits to air travel has a great deal to do with September 11, 2001. As a result of this tragic event, the judgments of the world have become increasingly profound to the background of passengers traveling on planes. It has shaped something of a undesirable perception for particular cultures and beliefs. This discourages people to travel with other passengers or airline, directly affects the airline industry (Reilly.N.J, 2010)

2.4 Technological
Technological developments have both created new opportunities as well as threats for the aviation industry.
Development in information and communication technologies has enabled strong communication and has consequently provided customers with an alternative for frequent travelling, for example; Qantas Frequent Flyer programs.
Airlines are now able to expand their outreach directly to consumers through e-commerce. For example, airlines like Qantas are able to introduce ticketless travel through the use of technology (Thompson and Gamble, 2012).
2.5 Legal
The implementation of the carbon tax had a negative affect on the aviation industry, as the airlines could not absorb the higher cost of fuel. This meant to offset costs travelers would pay extra in ticket prices (Herald, 2011).

Some governments provide subsidies that provide an unfair advantage and prices lower than market conditions which affects the functioning of airline industries directly and Global
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