This case study examines Atlassian, an Australian software company, analyzing its overview, strategic plans, external environmental factors, capabilities, and competencies.
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Running head: A CASE STUDY ON ATLASSIAN A Case Study on Atlassian Name of the Student: Name of the University: Author Note:
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1A CASE STUDY ON ATLASSIAN EXECUTIVE SUMMARY The main objective of the concerned paper is to analyse a case study on a company named – Atlassian. The study focuses on analysing the overview of the company and moves to analyse the strategical plans of the concerned company. In this connection, the company researches the details of the external environmental factors that creates recognizable impact on the company. Further, the report examines the capabilities as well as the competency agility of the company. Furthermore, the report brings into light the effectiveness of the analysed competency level and concludes with the understanding of the importance of the same for every business entity.
2A CASE STUDY ON ATLASSIAN Table of Contents Introduction to the company......................................................................................................3 External environmental forces influencing the company...........................................................3 The capabilities and competencies of the company...................................................................6 The effectiveness of the capabilities and competency of the company.....................................8 Conclusion..................................................................................................................................9 References................................................................................................................................10 Appendices...............................................................................................................................12 Appendix 1...........................................................................................................................12 Appendix 2...........................................................................................................................13
3A CASE STUDY ON ATLASSIAN Introduction to the company The given paper is focused on examining the case study of a company named- Atlassian.The Atlassian is an Australian company; debuted in the year 2002 (Carslon, 2017). It is a team collaborated software based company that specialises in the sector of production as well as collaboration appliances for several business entities. The software developed by the concerned company helps the employees of a business to organise, discuss and execute their shared parts of work. The relevant company is examined to work for a team of five million active users every month and a rough of 51,000 business firm clients that are indulged in using the software products developed by the Atlassian (Carson, 2017). External environmental forces influencing the company As opined by Ansoff et al., (2017), the external environmental forces are those factors that create a significant impact on the strategical goals and plans of a business entity. In this connection, concerning examining the case study about Atlassian and implementing the theory of PEST analysis, the extrinsic factors that influence the working structure of the concerned company can be analysed as below. PEST Analysis According to the viewpoint of Kabakova & Plaksenkov (2018), PEST factors are the macro-environment factors that affect every powerful business entity. The PEST factors influencing the Atlassian are determined as below. Political The political factors in the business environment are the government policies that impact the corporate social responsibility of a business entity (Kolk, 2016). The political factors influencing the working structure of Atlassian are.
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4A CASE STUDY ON ATLASSIAN The stability of the political considerations and the significance of IT services that contribute to the GDP of the country. The threat of corruption, specifically the rate of regulatory rates in the field of technological sectors. The framework of legal consideration that describes the enforcement of contractual considerations. The rates of tax and invasions. The compulsory benefits leveraged to employees. The need for labelling the products in the field of IT services. Economic AsstatedbyCharter&Tischner(2017),theeconomicfactorsofthemacro environment analysis influence the present as well as future values and prospects of a business organisation. The economic factors in context with the Atlassian are specified as below. The economic system and condition prevailing in the country where the company operates. Interference of Government in the market of technology. The rate of exchange and stability rate of other host countries. The quality of infrastructure in the industry of Information Technology. The cost of labour rate and rate of production in the economic system of the country. The rate of unemployment. Rates of interest and inflation. Workforce labour skills and interests.
5A CASE STUDY ON ATLASSIAN Social According to Hillary (2017), social factors influences the business following the attitude of its potential customers. Every particular individual has different tastes and preferences. In this context, the social factors affecting the Atlassian are determined as: The demographics of the country. The hierarchy structure of the society and country as a whole. The cultural background of the citizens. The behavioural attribute of potential customers. The nature of the society towards entrepreneurial entities. The rate of leisure interest in the targeted market. The level and standard of education both in the company and market. Technological Everything from production until supplying requires proper technology in it (Porter & Kramer, 2019). Efficient technology provides effective production and efficient supply. The technical factors require enormous investment and maintenance and affect the sales rate of a company and the rate of its customer satisfaction. The technological factors influencing the Atlassian are examined below. The change in the innovation strategies of the business market. The current technological modifications by the potential competitors of Atlassian. The average rate of diffusion in technology. The impact of technology overproduction and offering of products. The impact on the supply chain management due to change in the technology sector. The increase in the cost of production in the IT sector because of the numerous advancements in innovation and technologies.
6A CASE STUDY ON ATLASSIAN The capabilities and competencies of the company As implied by Heemskerk et al., (2019), several technological changes may affect the process of Atlassian; starting from its products and services to the computing of its business models. However, considering the differences in technologies and the modified trends and trades of the market, it is expected that several companies will enter the market of IT department with innovated digital products and services. Thus, the capability and the competency tool of the concerned company remains to develop their software team base to create and innovate their product and services offered to the customers and survive in the market for a more extended period. The development in the technological factors of the company is specified as thecorefactor of determining the competency agility of the company.Second, comes the process and effectiveness of the Research and Development team.Thirdly, the focus of the company towards its Corporate Social Responsibility andlast but not the leastits efforts towards the environmental informs. Based on the above pieces of findings, it was examined with the help of case study that in the year of 2015, due to the rapid changes in the technology and innovation, the potential customers of the IT department demanded frequent changes for improving the products and services. They also wished the same to be at the best quality and the lowest price. These rapid modifications led to a disturbance in the software technologies and delivery of the services demanded by the customers and in turn affecting the business models of IT companies. However, the Atlassian remained unaffected with this because of its unique philosophy of no sales force. The concerned company has been recorded to spend 21% of their total revenue to sell its products (Schonell, 2017). The competitors of Atlassian have limited their earning to just the sales of software, whereas, the business strategy of Atlassian Company uniquely revolves on recurring the fees of subscription from the customers rather than just the sales volume of software. In this connection, it was examined that the costs of
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7A CASE STUDY ON ATLASSIAN sales and marketing of Atlassian remained significantly low as compared to its potential competitors. The same can be analysed with the help of the table below. Name of the companyAnnual Sales (in a million)Sales and Marketing Costs (in a million) Atlassian$319.5$68 Salesforce$537$276 Workday$787.9$315.8 Box$216.4$207.7 ServiceNow$682.6$341.1 HubSpot$115.9$77.8 NewRelic$110.4$89.2 Figure 1: Showing Annual Sales and Cost of Sales and Marketing (Source:Based on Mahroum, 2016) As shown in the above table, it is analysed that the sales and marketing cost of the concerned company Atlassian is at the lowest rate of only $68. Although the annual sales are determined to be low, Atlassian still generates the highest revenue because of marketing costs being low, and the final revenue of a company is determined after deducting its cost incurred from the sales generated. In this connection, the competency level of the organisation can be determined with the limitations of VRIO model. VRIO model VRIOmodel determines the different level of traits an organisation indulges that makes it advantageous from other. TheVRIOmodel for Atlassian is specified as below.
8A CASE STUDY ON ATLASSIAN Figure 2: Showing VRIO model of Atlassian (Source:Based on Barahona, 2015) The effectiveness of the capabilities and competency of the company Based on the case study and the evidence presented above, the research tends to prove that the Atlassian has effectively and efficiently achieved the competency. This is determined by the statistical data presented in the above table (Refer Appendix 1). Along with this the case study also shows that since the day of its existence, the concerned company has been gaining a high level of success and that too at a very short span of time. The annual revenue generated at the very first year was recorded to be $1 million. This revenue rate increased to 14.9 million in the year of 2005-2006. Moreover, this revenue kept on expanding on a record- breaking pace and reached 39.5 million in the year of 2015. Researches in this context proved that the revenue rate of 2015 increased by a rate of 49% to that of 2014 (Zaheer et al., 2019). It was also examined that the company follows a balanced distribution model for its supply chain management that ensures the smooth flow of products and services from the place of its Valuable The valuable product deigned by Atlassain is its software designs. Rare The software designed are rare in the case that it helps the business to operate,dicsuss and execute their processes and plans. Inimitable The inimitable nature of the product is the security concept indulged in it. Organise d The company works a well organised team an treats both its customer and employees as family.
9A CASE STUDY ON ATLASSIAN origin to the area of consumption. The company is also focused on risk-taking abilities on the highest priority and also continuously work with innovation strategies and technology implementation that helps them to gain a better competitive advantage in the market. This, in turn, helps the company to sustain itself in the market in the long run. Conclusion Based on the case study examined in the following paper about the strategies and changes in the strategic plan of the company Atlassian, it was contemplated that effective and efficient implementation and execution is necessary for a business entity. The strategic plan is the ones which define the future working process and paradigm of business. In this case, it was examined that the concerned company has received a sufficient degree in achieving the most significant competitive advantage in the market field of Information Technology. The company is analysed to have a transparent wall with its customer that helps it gain customer loyalty. Moreover, the company works together as a team with its all level of employees and they foster in being the change rather than just seeking for it.
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10A CASE STUDY ON ATLASSIAN References Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., & Ansoff, R. (2019).Implanting strategic management. Springer. Barahona, M. M. S. M. C. (2015).Internationalization strategy of Labirinto Shoes to Sydney (Australia)(Doctoral dissertation). Carlson, R. M. (2017). Atlassian: Analysis and strategic recommendation. Carson, G. (2017). Hidden opportunities in the software sector.Equity,31(9), 8. Charter, M., & Tischner, U. (Eds.). (2017).Sustainable solutions: developing products and services for the future. Routledge. Heemskerk, M., Turner, B., Hinch, J., & Studman, M. (2019).U.S. Patent Application No. 16/147,211. Hillary, R. (Ed.). (2017).Small and medium-sized enterprises and the environment: business imperatives. Routledge. Kabakova, O., & Plaksenkov, E. (2018). Analysis of factors affecting financial inclusion: Ecosystem view.Journal of Business Research,89, 198-205. Kolk, A. (2016). The social responsibility of international business: From ethics and the environment to CSR and sustainable development.Journal of World Business,51(1), 23-34. Mahroum, S. (2016). Atlassian in Sydney: Beating the Tyranny of Distance. InBlack Swan Start-ups(pp. 215-231). Palgrave Macmillan, London. Porter, M. E., & Kramer, M. R. (2019). Creating shared value. InManaging sustainable business(pp. 323-346). Springer, Dordrecht.
11A CASE STUDY ON ATLASSIAN Schonell, S. H. (2017). Case studies 5: Atlassian. Zaheer, H., Breyer, Y., Dumay, J., & Enjeti, M. (2019). Straight from the horse's mouth: Founders'perspectivesonachieving‘tractionindigitalstart-ups.Computersin Human Behavior,95, 262-274.
12A CASE STUDY ON ATLASSIAN Appendices Appendix 1 Name of the companyAnnual Sales (in a million)Sales and Marketing Costs (in a million) Atlassian$319.5$68 Salesforce$537$276 Workday$787.9$315.8 Box$216.4$207.7 ServiceNow$682.6$341.1 HubSpot$115.9$77.8 NewRelic$110.4$89.2 Figure 1: Showing Annual Sales and Cost of Sales and Marketing (Source:Based on Mahroum, 2016)
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13A CASE STUDY ON ATLASSIAN Appendix 2 Figure 2: Showing VRIO model of Atlassian (Source:Based on Barahona, 2015) Valuable The valuable product deigned by Atlassain is its software designs. Rare The software designed are rare in the case that it helps the business to operate,dicsuss and execute their processes and plans. Inimitable The inimitable nature of the product is the security concept indulged in it. Organise d The company works a well organised team an treats both its customer and employees as family.