Session 3-Activity 2 (Strategic Analysis) PDF

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Business School Discipline of Business Information Systems TBL Group Activity Sheet

INFS1000: Digital Business Innovation Group code

«Stream»«Group»

Tutor:

«Tutor»

SID «SID1»

Name «First1» «Last1»

Contribution

Signature

«SID2» «SID3»

«First2» «Last2» «First3» «Last3»

«SID4» «SID5»

«First4» «Last4» «First5» «Last5»

«SID6»

«First6» «Last6»

Contribution: out of 100%, 100% means participation in all activities. Signature: Do not sign for other group members, as this is regarded as serious academic misconduct. If incorrect: Please correct any information provided in the table above.

Activity W3(2): Strategic analysis of Jetstar Airways (Domestic) WIKIPEDIA: “Jetstar Airways is an Australian low-cost airline (self-described as "value based”) headquartered in Melbourne, Australia. It is a wholly owned subsidiary of the Qantas Group, created in response to the threat posed by then low-cost airline Virgin Blue (now known as Virgin Australia). Jetstar is part of the Qantas Group's two brand strategy(…) Domestic passenger services began on 25 May 2004, soon after the sale of tickets for her inaugural flight in February 2004... Although owned by Qantas, its management operates largely independent of Qantas through the company formerly known as Impulse Airlines - an airline acquired by Qantas on 20 November 2001. The advertising slogan of Jetstar is "All day every day low fares". Two additional slogans have recently been used in its marketing campaigns; "Let's Fly Jetstar" (2004-2006) & "It's All About Choice / Fly Away" (later "Low Fares, Good Times") (1 July 2006-future). (…) On all domestic routes Jetstar has a buy-on-board single class service, offering food and drinks for purchase.”

1. According to the above, what competitive strategy does Jetstar apply? Broad – Cost Leader or Industry Wide – Cost Leader

Check: «No»Group colour: «Colour» >

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Business School Discipline of Business Information Systems INFS1000: Digital Business Innovation

TBL Group Activity Sheet

2. Carry out a five forces analysis. First, identify the relevant market players, then discuss the competitive influence that these market players have on Jetstar (Jetstar’s position vis-à-vis these players).

Force Competitors

Market Players Virgin Airlines, Tiger Air

Influence / Position = High

Customers

Low-cost demographic

= High

Suppliers

Boeing / Airbus Airports

= Could be low = High

New Entrants

None

= Low

Substitutes

Train/Car/Bus/Cruise

= Low, not close substitute

3. What does Jetstar’s Value Chain look like? As Jetstar is providing a service and not a physical product, its value chain differs from what has been described by Porter in its original model. Try to identify the

primary activities necessary to describe Jetstar’s business:...