Airline Industry

Topics: Qantas, Strategic management, Airline Pages: 4 (1155 words) Published: May 22, 2012
Strategy, Balanced Scorecard and Strategic Profitability Analysis (Custom Pub. Chap15)

Based on the organisation that you have selected, you are required to describe the organisation’s mission, describe and classify the organisation’s strategy, and identify its‟ value proposition and core competencies. Using Porters Five Forces Framework illustrate these five forces for your organisation, and provide brief comments on how these forces they influence your organisation’s profit potential. Using the Balanced Scorecard as a contemporary performance measurement framework, evaluate the current financial and non-financial measures that your organisation uses. Based on your evaluation, indicate in your opinion, the extent to which the strategies have been implemented, and make recommendations concerning additional areas (with some examples of performance measures) that your organisation could include in their Balanced Scorecard.

Airline industry is very competitive as Jetstar isn’t the only Domestic Flight dominating the market. Porter’s Five- Forces Model is used to analyse the intensity and profitability of this industry. In order to illustrate Jetstar’s competitive advantage over its competitors, Porter’s Five Forces evaluation is assessed below. Porter’s Five Forces model is essential to evaluate Jetstar Airways’ competitive advantage as it was established in 2003 as a low-cost airline by its parent company- Qantas. Explicitly in response to the threat posed by its competitor- budget airline- Virgin Blue (Jetstar Airways 2009). Intense rivalry within an industry

Risk to Jetstar is High
The competition in the airline industry takes the form of association rivalry as well as individual airlines competing in markets where Jetstar is at hand. As mentioned, Jetstar was established by Qantas in response to introduction of another low- budget airline, Virgin Blue Airlines, so it was inevitable that they would soon be challenged by a novel addition to the low-cost...
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