There are a number of different substitutes for the airlines, especially considering the short routes such as train, bus and other modes of transportation. However, this is not the case for long distance travelling, and with the advancement of technology, there are a number of different options such as video messages, video conferences, and net meetings, with substitution, but there is lack of effectiveness.With respect to the power of supplier, the aviation industry has been highly polarized. The investments made by the manufacturer are mainly suppliers, and with orders of high value, there is less scope for moving or increasing the overall prices to a large effect. And hence, the power of suppliers for bargaining is considerably low.
The power to bargain among customers is extremely high as the buyers can easily switch to different options and hence are provided with sufficient power. The level of competition is also extremely high that is further ahead favorable for the customers. The target market of customers of Wal-Mart is extremely diversified, while the entire industry ended up influencing the life of Australia. The identity of brand is of huge significance for the airlines industry. Wal-Mart is known to have strong identity of brand that is key reason why it uses the national symbol of Australia.
The government of Australia recently considered releasing an article for reporting on the status of the airlines market. Economic issues are inclusive of each and every aspect across the aviation market. Inflation on rates of currency can impact the business further leading towards an unstable economy. At this point of time, financial recession ended up turning the crisis of economy and this seems to have an inevitable effect on the company. The change of foreign rates across the global economy will also affect the company. The revenues and profits earned by the company are significantly decreasing. Environmental factors consider the eco- friendliness of the industry and the organization. There is significant wastage of fuel by Wal-Mart that is not good for the overall environment, further polluting it.