Jetstar and Its Competitive Advantage
Applied Strategic Management Report
Name : Lalithaa Letchumanan
IC Number : S8852820D
Course : International Business and Management
Batch : 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 it make s up such a big bulk of the expenses incurred by airlines and the subsequent increased competition since it deregulation in the 1990’s. The main general environment factors were that of the swine flu pandemic, being that people did not want to travel unless it was absolutely necessary, Jetstar Airways competitive advantage is discussed through the use Porter’s five forces model. Both these analyses have resulted in the findings that Jetstar has succeeded in their attempt to become a market leader in the airline industry, in particular the low-cost carrier category. Although both investigations found positives and negatives about the organization, the positives adversely outweigh the negative
Chapter 1.0 – Introduction
The company i am going to talk about is Jetstar International.
Picture 1.0 – Jetstar Logo
The Jetstar Group is a network of value based carriers providing all day every day low fares across the Asia Pacific region. Jetstar Group comprises of Jetstar Australia and New Zealand operations which run Australian domestic and short/long haul international services, Jetstar Asia and Valuair operations whose partner airlines are based in Singapore supporting Jetstar’s reach into 22 Asian destinations and Jetstar Pacific which run domestic operations in
Name : Lalithaa Letchumanan
IC Number : S8852820D
Course : International Business and Management
Batch : 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 it make s up such a big bulk of the expenses incurred by airlines and the subsequent increased competition since it deregulation in the 1990’s. The main general environment factors were that of the swine flu pandemic, being that people did not want to travel unless it was absolutely necessary, Jetstar Airways competitive advantage is discussed through the use Porter’s five forces model. Both these analyses have resulted in the findings that Jetstar has succeeded in their attempt to become a market leader in the airline industry, in particular the low-cost carrier category. Although both investigations found positives and negatives about the organization, the positives adversely outweigh the negative
Chapter 1.0 – Introduction
The company i am going to talk about is Jetstar International.
Picture 1.0 – Jetstar Logo
The Jetstar Group is a network of value based carriers providing all day every day low fares across the Asia Pacific region. Jetstar Group comprises of Jetstar Australia and New Zealand operations which run Australian domestic and short/long haul international services, Jetstar Asia and Valuair operations whose partner airlines are based in Singapore supporting Jetstar’s reach into 22 Asian destinations and Jetstar Pacific which run domestic operations in