Business Management and Stategic Management Assignment 2022

Running head: BUSINESS MANAGEMENT AND STATEGIC MANAGEMENT
BUSINESS MANAGEMENT AND STATEGIC MANAGEMENT
Student's Name
University Name
Author note

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Introduction
The company Atlassian is an Australian team collaboration software company which was
launched in the 2002 (Benavides and Galindo 2014). Atlassian Australia offer wide range of
software development products. The software offered by the company assists the teams in
discussing, organizing and completing the shared work. The company has over 51000
organizations having almost 5 million active monthly users. The clients of the company include
eBay, Coca-Cola, BMW, NASA, Facebook and Netflix. The company has the following
business divisions namely: Plan, track and support which includes products such as Jira Core,
Jira service Desk and Jira software (Carlson 2017). The division collaborates and chat includes
products like Confluence, Trello, Sride and Hipchat. The other division Code, Build and ship
includes product offerings like Bit bucket, Bamboo, Crucible and others. The company is
currently seeking opportunities for expansion in the near future; however, it has been facing
challenges including innovation at scale. There are various small flexible stratus, there are more
established companies having changing roles such as Farquhar and Cannon Brookes. The
purpose of this report is to conduct macro environment analysis, industry analysis, company
analysis and competitor analysis of the software company Atlassian. It also identifies the
strategies and provides suggestions to improve the strategies. Lastly, it concludes the report.
Analysis
1. Macro environment analysis

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PESTLE Analysis
The changes in the business environment are changing rapidly with the changes in
consumer behavior and advancements of technology. The changes in the external business
environment have direct impact on the Atlassian Company and directly impact the information
technology services. It can impact the company’s competitive advantage and reduce the
profitability. Pestle analysis offers valuable insights into the challenges and opportunities that
can be faced by Atlassian Company (Carlson 2017).
Political factors – As per analysis, there are instances of bureaucracy and interference by the
government in the technology sector. There are complex laws and legal framework for property
protection, trade regulations, pricing regulations, taxation and intellectual property protection.
Economic factors – The Australian economy is undergoing structural changes. There are
corporate tax cuts, free trade agreements, reforms in the labor market, an effective system of the
government and skilled workforce that is readily available in the economy. Hence it is an
opportunity for the company (Ho 2014). These factors can favor expansion for the company.
Social factors – There is high level of skilled workfare in the economy. The society has a broad
nature and entrepreneurial spirit. The education level of the general people is high. Therefore
skilled workers are available in the market (Ho 2014).
Technological factors: Australian economy is known for its technological innovations. There
are technological developments and improvements in the economy (Ho 2014). However, there is
government interference in the research and development industries.
Legal factors- There are strict laws and regulations for informational technology services
throughout the country. It ensures fair trading laws, consumer laws and competition laws.

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Environmental factors- the current weather conditions might impact the ability of the company
to deliver the final product (Ho 2014). Thus climate change can be a challenge to the company.
The sudden changes in the climate can be a challenge for the company to expand its business
activities.
2. Industry analysis
Porters five force analysis
Threats of new entrants- The threat to new entrants are high, they bring in ways and
innovative ways for doing things forcing Atlassian to reduce their pricing strategy and offer new
value proposition to the customers ( Dobbs 2014). Hence Atlassian needs to manage the threats
by building effective barriers to maintain its competitiveness in the business scenario.
Bargaining power of consumers- The consumers are mostly very demanding and they have a
high bargaining power. This pressurizes the Atlassian Company to offer the software and their
specialized services at a lowest price. Atlassian Company has a huge customer base; hence they
have a higher bargaining power. The consumers have the ability to seek for more offers and
discounts ( Dobbs 2014).
Bargaining power of suppliers: The IT Company purchases its raw materials from various
suppliers. The suppliers have high bargaining power being in the dominant position in the
market. This decreases the profit margin of the company.
Threats of substitute products and services: The threat for substitute products and services are
high, they have the ability to meet the needs and demands of the consumers in new and

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innovative ways. Hence the profitability of the company suffers the other services such as
Google drive and Drop box are substitutes that offer storage (Chatzoglou et al. 2018).
Rivalry among the existing companies: There is intense rivalry among the existing players in
the industry which reduces the prices of the software’s and services offers thereby decreasing the
overall profitability of the industry ( Dobbs 2014). Atlassian operates its business in highly
competitive business environment.
Life cycle stage of the company
Atlassian Company is at the growth phase. It has been planning to expand its business
and has experiences rapid growth in the sales in the previous years. It has maintained a careful
balance between adapting to the changes and its corporate strategy (Johansson 2017). During its
growth phase, the company has been facing various challenges that are innovating at a scale.
However, it continues to innovate as it grows.
3. Company analysis
VRIO framework
Valuable: The patents of the company are valuable resource for the company. Further, it has a
good distribution network which enables the company to reach out to more consumers. However,
research and development department and the cost structure are not competitive and require
more emphasis (Chatzoglou et al. 2018).
Rarity: The financial resources of the company are very strong; the employees of the company
are highly trained and efficient unlike other companies. The patents are rare resource for the
company which is not possessed by the competitor. This enables the company to utilize them

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without competitive interference (Millar 2017). The distribution network of the company is also
a rare resource as it requires lot of time and effort to have a better distribution network.
Imitable: The financial resource of the company is expensive to imitate b the competitors. It has
been acquired by its prolonged profits in the past years. The patents of the company are not
legally permitted to be imitated (Millar 2017). Hence the resources of the company are difficult
to be imitated. The distribution network of the company is also costly to imitate as it requires
high amount of investment by the competitors.
Organization: The financial resources of the company to use in a strategic manner and it are
invested in the right places. This enables to company to gain competitive advantage. The patents
of the company are not used to its fuller potential. The strong distribution network of the
company is a source of sustained competitive advantage for the company (Palepu and Healy
2013). The core competencies of the company can help the company to achieve its goals and
objectives.
Therefore, it has been identified that the financial resources, the string distribution
network and the patents of the company along with trained and efficient employees in the
company are some of the most valued resources of the company. These valued resources of the
company pose to be the core competencies of the company (Benavides and Galindo 2014).
However, the company needs to emphasize more on its research and development in order to
come up with more innovative application software to cope up with the increased demands and
needs of the customers and the stiff competition in the market.

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4. Competitors analysis
Rally Software Company is one of the top competitors of Atlassian Company; it was
funded in the year 2001, which is headquartering in Boulder, Colorado. The application software
offered by the company is highly competitive and innovative. It offers various project
management software including taking the requirements, tests and other defects. The direct
competitors of Atlassian Company are IBN, CA technologies and Google. IBN is a consulting
company which offers various computed related hardware and software infrastructure along with
hosting services (Fleisher and Bensoussan 2015). The company is currently having 4% decrease
in their employees.CA technology is also a well known company for its innovative application
software’s especially general purpose bug tracker. It offers featured agile project tracking
system. CA technologies and Google are also biggest threat to the company, as they stay fast and
are highly competitive in the current market scenario (Fleisher and Bensoussan 2015).
The new advanced technologies and application software developed by the competitors
of Atlassian pose to be a serious competitive threat to the company in the long term. Further, the
company has seasonal demands for its highly profitable products. Since the research and
development department of the company is not competitive enough and it can impact the
profitability of the business organization (Grant 2016). The core competencies of the company
and the potential resources of the company must be utilized to their fuller potential in order to
over overcome the competitive pressures in the market. Further, it needs to continuously
innovative products and offerings to its consumers to maintain its competitiveness in the market.

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5. Strategy analysis
The core strategy of the company is to focus on ‘no sales force’ philosophy. The software
sales of the company are not driven by the tradition ways of sales culture (Grant 2016). The
company plans to focus on having greater percentage of revenue and utilize them to build better
and more innovative software. The software’s and products are sold to the customers online
through its own website. It promotes its products and services through ‘word-of-month’. This
strategy enables the company to gain substantial customers base and have a community of users
who can act as the product users and advocates solutions with the company (Palepu and Healy
2013). Customer experience is considered as an integral part of the company strategy. In order to
maintain its competitiveness the company connects with its customers and offer to them the
buying experience that is needed by the buyers. Atlassian focus more on ‘quota driven sales’ and
they have a deeper understanding on customer driven sales (Carlson 2017). It heavily focuses on
the wellbeing of its staffs and employees. The analysis is quite appropriate
However, there are rapid changes in the industry, the consumers are demanding for better
services with lower price and higher quality. There is a disruption in the software service
delivery and the business models hence; there is a rapid change in the demands of the demands.
The information technology companies do not reply on the one dimension value strategies
(Millar 2017). Therefore, it is suggested that Atlassian need to improve its margin and find new
streams for revenue which is highly critical for the success of the business organization. In order
to maintain its financial performance, it is suggested that they must re-examine the structure of
the business. The distinct strategies of the business, continuous innovations and targeted
investments can provide the company with better revenue opportunities. The company requires

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certain top line improvements through acquisition and continuous innovation. There will be high
demand for applications such as cloud computing, data analytics and cyber-security (Fisher,
Koning and Ludwigsen 2013). Therefore, it is suggested that the company emphasizes on these
applications.
Conclusion
Therefore, from the above analysis, it can be concluded that the demand for information
technology services at increasing at a rapid rate along with competitive pressures in the industry.
The report has conducted a macro environment analysis, which states that business environment
in which it operates are favorable, there are abundance of skilled and efficient labour, and there
is a scope for technological improvements and developments. However, there are challenges
such as increase in government interference and political disturbances. As per the industry
analysis, it has been identified that the company is facing stiff competition in the market, the
bargaining powers of the customers and availability of substitute products and services in the
market pressurizes the company to lower its price and thereby reduces the profitability of the
organization. Further, it has been analyzed that there are various valuable resources of the
company including good distribution system, financial resources of the company, and efficient
employees. This is some of the core competencies o the company. The report has provided a
competitive analysis and has analyzed the strategies of the company. As per the analysis, it is
recommended that the company must utilize its valuable resources to its fullest capability. It can
re-examine the structure of the company and emphasize more on innovations in order to
outperform its competitors.

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References
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