Jetstar Task and Environmental Competitive Analyisis Essay

3953 Words Aug 22nd, 2011 16 Pages
jETSTAR | Case Study Report |

Executive Summary

The following report examines the organisational environment for the Australian Airline industry with particular emphasis on the task and general environment followed by analysis 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
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The deregulation of the airline industry also significantly brought down the barriers to entry for new competition. The obvious question that comes to mind being how many airlines can the Australian market accommodate for. Up until the collapse of Ansett it seemed that there was room for two commercial airlines, being that they had operated in harmony for more than half a century. Then within a space of a couple of years both Ansett and a new low fare airline (Impulse) both collapsed so there is no magical number as to the number of operators that can exist together in the Australian market. According to a report published by The Australian Federation of Air Pilots “we are a country that currently can only sustain 2-3 airlines” (comments on aviation green paper, 2009). With Virgin Blue, Qantas and its subsidiary Jet Star and Tiger Airlines the only 3 substantial commercial airlines operating in Australia, maybe three is the magical number; only time will tell.
1.2 General Analysis
The Task environment is not the only environment with forces and conditions shaping the face of the Australian airline industry. The general environment is just that general, factors including economical, political, technological and socio-cultural just to name a few.
An example of a socio-cultural force currently in play is the outbreak of swine flu. This is of particular concern to the Australian airline industry as Australia (and

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