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ACCM6000 Capstone Assignment Report

Assessment Instructions

Develop the competitor analysis as follows:

- Conduct five key forces (Porter) which impact on your industry competition.

- Perform the PEST analysis for your company and compare the differences against your two competitors.

- Conduct a benchmarking review covering internal benchmarking, external benchmarking and best-in-class benchmarking.

- Describe the threats, bargaining power and competitive rivalry.

- Prepare your statement of advice addressed to the company’s CEO on how your company differentiates itself from its competitors and what improvements can be made to your company.

Learning Objectives

After completing this Individual Assignment, you will be able to:

1) Research information about the selected companies (using multiple sources)

2) Conduct a PEST analysis

3) Benchmark your company against two of its competitors

4) Articulate and recommend courses of action to differentiate a business against its competitors



Qantas Airways is an international airline based in Australia. It is considered one of the oldest airlines. Qantas Airlines provides traveling service both domestic and international services. It focuses on the comfort and convenience of its customer. Qantas Airlines provides hotels, cars and travel facilities. It aims at flexible and safe traveling of its passengers. This essay discusses the five porter forces, pestle analysis and competitors of Qantas Airways to analyse its competitors like Singapore Airlines and Air China. Furthermore, the benchmarking review, threats, competitive rivalry and its competitive advantage are discussed.
Qantas Airways five porter forces

Porter five force analyses help the business to have a clear understanding of the competitors.

Qantas Airways five porter forces are:

1. Threats of new entrants - Qantas Airways face new competition in its market. This in turn changes the market conditions. An increase in competition affects the pricing strategy, cost and provides a new selling proposition to its passengers. Singapore Airlines and Air china are two big competitors (singaporeair.com, 2020). Singapore Airlines gives a tough competition through its quality customer experience service whereas Air china brand marketing strategy is a threat to Qantas Airways business. To survive in the competitive environment Qantas Airways need to invest in research and development to understand the competitor's activities (Bruijl, 2018).

2. Bargaining power of suppliers - The bargaining power of suppliers has a direct effect on the profit of Qantas Airways. The higher suppliers use their negotiation skills to earn huge income from airways leading to loss whereas a low supplier extracts limited money from airways leading to profit. Singapore Airlines and Air china bargaining suppliers are in dominating position so the negotiation power is less thereby making the competitors strong (Aithal, 2017).

3. Bargaining power of buyers - Customers often want maximum services at a minimum price. This affects the business of Qantas Airways in the long run. The bargaining power of its customer in its commutative industry Singapore airlines and Air china is strong as the company’s focus on providing customer oriented products and facilities to ensure growth and survival. Therefore to increase its sales it aims at increasing its customer base and focuses on innovating new products as customers bargain on the existing products so to reduce the bargaining power it continues to invest in innovation of the products.

4. Threat of substitute product - The substitute product the satisfying customer wants to retouch the profit margin for the Qantas airways business as it offers a better value proposition thereby diverting and attracting customer attention. The competitor industry Singapore Airlines and Air china products and service acts as a substitute for customer. Therefore Qantas Airways should improve its service quality, offer customer-oriented products and services and increase switching costs to attract and retain its customer.

5. Rivalry among the competitors - Qantas Airways faces intense competition in its industry from its rivalry competitors Singapore Airlines and Air China. The strategies of the competitors are stronger acting as a threat to Qantas business. This in turn forces the company to reduce its cost to retain customers thereby decreasing the profit margin. Therefore to survive in the fiercely competitive environment Qantas Airways offers differentiated products and quality services at affordable prices. It establishes collaborative relationships with its competitors to increase its market size thereby leading to the growth of the business.

Pestle analysis of Qantas Airways

Pestle analysis refers to the understanding of the external business environment.

Political factors

1. Travel restrictions - During the pandemic period, the governments of different countries restricted international travel. Maintaining sanitization and social distancing measures increased the cost of business leading to loss. Singapore Airlines and Air China too had to suffer loss due to travel restriction imposed internationally.

Economic factors

1. Increase labor cost - As the pandemic leads to a shortage of labor in the market. This increased the labor cost thereby increasing the cost of business (Walsh et al., 2019). Singapore Airlines is able to afford high labor cost due to its fixed infrastructure .This requires one time investment thereby helps company to maintain price whereas the unemployment rate is less in china therefore Air china does not face huge increase in labor cost. Increased labor costs and shortages reduced the productivity of the business leading to loss of the Qantas Airways business.

Social factors

1. Attitude - During the pandemic period the attitude of the customer and their needs and preference changed. Singapore Airlines satisfied customer wants through its innovative technology whereas Air china uses improves its product and offers variations to satisfy customer. The customer had a fear of infection so it created doubt in the minds of the customer regarding the sanitization and social distancing measures (Farah et al., 2018). This attitude and fear prevented customers from traveling leading to reduced sales of the business.

Technological factors

1. Innovative Technology - In today's digitized world Qantas Airways must be updated with technical innovation and use innovative technology to enhance the product and service quality for customers. Singapore Airlines is a, salient competitor due to its innovative technology whereas Air China works to improve its uses of technology to strengthen itself.

2. Cost reduction - Innovative technology helps the business to reduce its cost as it reduces the labor effort. Singapore Airlines is able to maintain its price due to fixed infrastructure and technology whereas Air China maintains its cost through its brand value.
Environmental factors

1. Weather conditions - Qantas Airways business completely depends on the weather conditions. The bad conditions affect the business as it leads to delay in flights and thereby reduces service quality.

Legal factors

1. Data protection - The airline's industry needs to focus on data protection. Qantas Airways has been successful to maintain its data protection and is known for its safety thereby helping businesses to increase their customer base. Qantas Airways gains a competitive advantage over its competetor Singapore Airlines and Air China through its strong data protection strategy.

Benchmark Review of Qantas Airways

Internal benchmark refers to the internal strength of the business. Qantas Airways internal benchmark is its customer data. The Singapore Airlines benchmark review lies in its innovative customer experience whereas Air china benchmark review lies in its brand marketing. The airline has been successful in retaining its customer loyalty through its data protection and quality loyal services focusing on customer needs and preferences. It aims at the safety and comfort of its customers.

External benchmark refers to the strength of the business in its external business environment. Qantas Airways external strength lies in its technical innovation (Malhotra et al., 2021). Singapore Airlines external benchmark is its positioning strategy and brand awareness whereas Air china strength lies in its brand value. The airline continues innovation in technology to reduce its cost, design new products and thereby satisfy customer wants. Innovative technology helps to reduce costs by designing new products as the bargaining power of buyer’s decreases and increases the customer base as it helps to improve the standard of products and services.

The Best in class benchmark for assignment help refers to the strength that helps the business to increase and maintain its high performance (Islam and Mamun, 2017). Qantas Airways best in the class benchmark is its international and domestic presence. On the other the brand value of Air china and brand awareness of Singapore Airlines due to its positioning strategy is strong .Thus Qantas Airways should focus on expanding on a global level thereby increasing brand awareness. The presence and reputation of the business help the brand to maintain its quality and performance.

Threats, Bargaining Power and Competitive Rivalry


- Singapore Airlines is known for its customer experience. It keeps changing its services to act customer this acts as threat to Qantas business as it diverts customer base.

- Air china is prominent among customer due to its brand value. This helps the business to increase its market size on a global level thereby acts as threat to Qantas Airways international presence.

Bargaining power - The bargaining power of suppliers as well as customers affects the cost of Qantas Airways business. A high supplier extracts huge costs from airways thus reducing the bargaining power of business whereas a low supplier extracts reasonable costs of the business thereby increasing the bargaining power of business (Varelas and Georgopoulos, 2017). Therefore Singapore Airlines and Air china has dominant suppliers thus their bargaining power is less. This helps the competitors industry to gain competitive advantage over Qantas Airways. The short customer base reduces the bargaining power of business as the customer wants high service at minimum prices whereas a large customer base increases the bargaining power of Qantas Airways.

Competitive rivalry - Qantas Airways faces intense competition in its environment. Its biggest competitors are Singapore Airlines, and Air china. This competitor affects the pricing strategy and revenues of the business. Therefore Qantas Airways enhances its competitive strategies and strengths to survive the fierce environment.


Qantas Airways differentiates its product from its competitors through its customer data and digital innovation which gives competitive advantage.

The recommendations to improve service and profit margin are:

1. Qantas Airways should establish a large customer base and strong relations with suppliers to reduce their bargaining power (Heiets, 2021).
3. Qantas Airways should ensure the safety measures in its working environment and sort labor issues increase its labour supply and improve production.
4. The Airways should ensure safety, protection and comfort of customers to attract and retain customers thereby increasing the customer base.


In conclusion, Qantas Airways is an international airline based in Australia. It is known for its customer service. Its two big competitors are Singapore airlines and Air china. These competitors are strong due to their attractive strategy leading to success of business. These act as a threat to Qantas Airways business as there attractive strategies and competitive advantage affects the customer base of Qantas Airways. The business is successful due to its digital innovation and customer data. This helps businesses to survive a competitive environment leading to the growth and success of the business.



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