1. Executive Summary3
2. PESTEL Analysis4
3. SWOT Analysis6
4. Competitive Analysis7
a. History and competition/joint ventures7
b. Industry size, routes, hubs and passenger numbers9
5. Financial data 200814
New Mission Statement15
New Value Statement15
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. PESTEL Analysis
• Australian government policy and legislation currently permits airlines that are 100% foreign-owned to operate domestic airline services within the country. Australian international airlines are still subject to ownership rules limiting foreign ownership to 49%.
• Recovering from economic crisis.
• The fuel price has been steadily increasing over the last years and therefore affects the profit of airline industry.
• High operating costs, including excessive government taxes and charges
• Rising costs for security.
• Low profit margins- airlines through the years have earned a net profit margin of between 1% and 2% compared to an average of 5%
• Aviation market in Australia continued to be volatile, characterized by relatively flat growth, low margins and financial pressure.
• High rivalty among competitors - Virgin Blue took about a third of the domestic market from Qantas, but Qantas fought back by launching Jetstar.
• Population in Australia is a growing, but also aging. The Generation Y represents about 4.5 million of the 20 million people living in Australia. This group is reported to be setting and influencing spending pattern trends.
• Airlines own large fleets of expensive aircraft which depreciate in value over time and has to ne substituted
• Technology is continuously being used to improve various aircraft components and features. Jets are getting bigger, flying faster and for longer distances, thanks to more powerful and fuel-efficient engines.
• Digital technology is slowly but surely finding its application in the passenger cabin.
• Airline industry in Australia is highly regulated by government • High safety and increasing security requirements
• engine emissions
• aircraft noise
• waste management
• new types of fuel
3. SWOT Analysis
|Strengths |Weaknesses | |Low cost operations |Service is limited by lower costs | |Low prices – fare leader |Baggage restrictions | |Excellent customer service – many awards |Wheelchair/Mobility Aids Dimension Restrictions | |Diversified – offers holidays, hotels, cars, insurance |Heavy reliance on outsourcing – fuel, airports | |Background of strong international company (Qantas) |Number of planes | |Quick growth - has grown to be almost four times its size |Number of destinations | |3rd largest domestic Australian airline | | |Focused on customers |...