BMGE10906A Lecturer : Dr Eric Kuan Executive Summary The following report examines the organizational environment for the Australian Airline industry with particular emphasis on the task and general environment followed by analysis and findings of Jetstar Airways business-level strategy focusing on the airline’s competitive advantage. Upon concluding the research for the task environment‚ the main forces shaping the Australian Airline industry was the cost of fuel‚ this being such a key factor because
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Resource Based View - VRIO Analysis 1. Tangible Resources a) Financial Resources: * Firm’s cash and cash equivalents- The total cash and cash equivalents of the firm stood at around Rs. 271.5 Crores in the year ended March 2009 (before merger with Kraft). Liquidity is important for a business to factor in for unforeseeable events. The ideal cash reserve requirement can be calculated by taking into account and listing possible unfavorable events and assigning probabilities to them
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JetStar Hong Kong 1. Jetstar Hong Kong is a proposed low fare airline‚ based at Hong Kong International Airport which plans to commence services in 2013.1 2. It will be formed as a strategic alliance between China Eastern Airlines and the Qantas Group. The two carriers will invest as much as $198 million‚ with each company holding a 50% share.1 3. It will initially serve short-haul routes to cities in China‚ Japan‚ South Korea and South East Asia.1 4. The business strategy of JetStar
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providing low fare flights to meet the demands of flyers. Power of supplier of Jetstar is considered to be low. There are two main inputs to the airline industry; aviation fuel and airplanes. Since aviation fuel is a commodity‚ which prices are largely determined by the market forces and geo-political forces (Sundaresan‚ n.d.)‚ it can be said that the suppliers do not have much of a control over the prices put out to Jetstar. With regard to the supply of airplanes‚ there are currently two manufacturers
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Case Study: QANTAS (Jetstar Pacific) Qantas Airline is considered to provide the longest distance travel in the world’s leading aviation. Qantas works alongside Jetstar‚ which is known as the lowest domestic and international fare provider in Australia and Singapore (Qantas Airways Limited 2013). Qantas has expanded its operations internationally to Vietnam through Jetstar Pacific by the joint venture strategic alliance (Trade Dealer 2012). In this case study it is essential to understand firstly
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5/6/2011 S23220059 | Ken Koh Cong Kang | JETSTAR AIRWAYS | MCD 2050 Marketing Major Assignment | Table of Contents Executive Summary3 1. Introduction4 1.1Purpose of Report4 1.2 Background of Jetstar4 1.3 Segmentation5 1.4 Plan of Report5 2. Discussion6 2.1 Product Category6 2.2 Major Competitors6 2.3 Brand Package and Label7 2.3.1 Brand7 2.3.2 Package8 2.3.1 Label9 2.4 Target Segments10 2.5 Needs and Wants11 3. Conclusion13 4. Recommendations14 5. Reference List15
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where Qantas focuses at the premium and business market while Jet star focuses on leisure markets. Jet star aims to have the lowest fare on every route that operates among its competitors. (Ref- http://www.jetstar.com/mediacentre/facts-and-stats/jetstar-group). Whilst Virgin Blue announced the commencement in November 1999‚ and in 2004 it has become one of the world’s most profitable airlines with one third of Australian market (ref------ http://www.theage.com.au/articles/2004/05/21/1085120117445
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1Barney and Hesterly (2006)‚ describe the VRIO framework as a good tool to examine the internal environment of a firm. They state that VRIO “stands for four questions one must ask about a resource or capability to determine its competitive potential: 1. The Question of Value: Does a resource enable a firm to exploit an environmental opportunity‚ and/or neutralize an environmental threat? 2. The Question of Rarity: Is a resource currently controlled by only a small number of competing firms
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Industry size‚ routes‚ hubs and passenger numbers 9 5. Financial data 2008 14 6. Jetstar 15 New Mission Statement 15 New Value Statement 15 Strategic Objectives 15 Key Strategies 15 1. Executive Summary In this strategic analysis report I as senior manager of Jetstar have developed PESTEL analysis‚ SWOT analysis‚ competitive analysis‚ created new mission and value statement for Jetstar and developed 3 strategic objectives and 2 key strategies for the next 3-5 years. 2.
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I will explain the link and differences between the VRIO-framework and the SWOT-model. Before I will explain this‚ I will first give you an insight in the meaning of these two models. SWOT-model: [pic] A SWOT Analysis is a strategic planning tool used to evaluate the Strengths‚ Weaknesses‚ Opportunities‚ and Threats involved in a project or in a business venture. Strengths and weaknesses are internal to an organization. Opportunities and threats originate from outside the organization. A SWOT
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