Competitive Strategy for Cosmos, Academies Australasia Group Limited and ITOCHU Australia

This report provides an overview of the various competitive strategies used by the various business organizations. The report will take into consideration the three Australian companies, namely Cosmos, Academies Australasia Group Limited and ITOCHU Australia. The report will provide an overview of the company Cosmos on the basis of the Porter’s five forces. The report will further provide an overview of the company Academies Australasia Group Limited on the basis of the Blue Ocean Strategy. Finally, the report will conclude with an analysis of the company ITOCHU Australia on the basis of the Ansoff Matrix.

Running head: COMPETITIVE STRATEGY
Competitive Strategy
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
This report will provide an overview of the various competitive strategies used by the various
business organizations. This report “will take into consideration the three Australian
companies”, namely Cosmos, “Academies Australasia Group Limited” and “ITOCHU
Australia”. The “report will provide an overview of the company Cosmos” on the basis of the
“Porter’s five forces”. The report will further provide an overview of the company
“Academies Australasia Group Limited” on the basis of the “Blue Ocean Strategy”. Finally,
the report will conclude with an analysis of the company “ITOCHU Australia” on the basis of
the Ansoff Matrix.

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Table of Contents
Introduction................................................................................................................................3
Tourism industry: Cosmos.........................................................................................................3
Threat from new entrants...........................................................................................................4
Porter’s Five Forces...................................................................................................................4
Threat from rivals...................................................................................................................4
Bargaining power of the buyers.............................................................................................4
Bargaining power of the suppliers.........................................................................................5
Industry rivalry.......................................................................................................................5
Education industry: Academies Australasia Group Limited......................................................5
Agriculture Industry: ITOCHU Australia..................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................9

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Introduction
The “level of competition which the various business organizations face in the present
times has increased significantly”(Barney 2014). This is “generally considered to be a
reflection” of the “advent of globalization” and the recent “advancements in the field of
technology and the various innovations” (Barney 2014). Therefore, the various business
organizations often “take the help of various market analysis tools in a bid to analyze the
level of competition faced by them” (Wagner and Hollenbeck 2014). Furthermore, these
analysis tools often help “the various business organizations” not only to find out the “level
of competition” faced by them but also to formulate as well as implement effective strategies
for the “effective mitigation of the competition faced by them” and also to outrival their
competitors in the business market (Wagner and Hollenbeck 2014). This particular intends to
give an overview of the market analysis of three companies belonging to three different
industries on the basis of their analysis on basis of three strategic tools.
Tourism industry: Cosmos
The company “Cosmos” was founded in the year 1928 around 80 years by a man
called “Globus Viaggi” (Cosmostours.com.au. 2018). Furthermore, it is “significant to note
that the company was founded with the help of a single row boat and from then on the
company took the help of the concept of merger and collaborations to become one of the
largest tourism business organizations in the nation of Australia” (Cosmostours.com.au.
2018). However, the real change in the company came with the “advent of globalization and
the changes in the field of technology and the recent innovations”. Moreover, the national as
well as the international tourism norms have greatly contributed towards the success attained
by this particular business organization. An analysis of this “particular business organization”
on the framework of “Porter’s five forces” would reveal the following facts-

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“Porter’s Five Forces”
“Threat from new entrants”
The company “Cosmos” has been in business for almost 80 years and has a stable
market in the nation of Australia (Cosmostours.com.au. 2018). Furthermore, the company
provides very attractive offers to the customers and in addition to that “offers a wide range of
destination choices” to the customers. On the other hand, it is very difficult for the new
companies to sustain themselves in the competitive business market of the nation of
Australia. Therefore, it “can be said that the company faces a very low level of threat” from
the various “new entrants in the market”.
“Threat from rivals”
The company has several rivals in the nation of Australia like “Intro Travel”,
“Intrepid Travel” and others (Cosmostours.com.au. 2018). However, in order to outrival its
competitors the company follows the policy of price competition and also the destination
choices which it offers to the customers are very unique (Cosmostours.com.au. 2018).
Therefore, it can be “said that the company faces a very low level of threat from its various
existing rivals in the business market” of Australia.
“Bargaining power of the buyers”
The customers have become a very fickle in the recent times and they constantly
switch from one company to another in a bid to get the best deal for themselves. This might
be seen as a reflection of the increase in the number of options which are available to them.
However, as already mentioned that the company under consideration here follows a policy
of price competition and the deals offered by it are the best among the ones provided by the
various companies in the nation of Australia (Cosmostours.com.au. 2018). Therefore, it can
be said that the “bargaining power of the buyers” is very low.

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“Bargaining power of the suppliers”
The various “suppliers of the company” “Cosmos” can be said to be hotels, tourist
guides and others who form an integral part of their business (Cosmostours.com.au. 2018).
However, it “is significant to note that the company takes the help of multiple suppliers in a
bit to reduce the bargaining power of its suppliers” (Porter and Heppelmann 2015).
Therefore, it can be said that the bargaining power of the various suppliers related to the
company is very low.
Industry rivalry
It is true that there are many companies in the nation of Australia operational in the
field of tourism. However, the kind of packages which the company “Cosmos” provides to
the various customers is very enticing and therefore “it can be said that the company faces a
very low level of threat from the concept of industry rivalry” (Porter and Heppelmann 2015).
Education industry: Academies Australasia Group Limited
The company “Academies Australasia Group Limited” is one of the largest
educational companies “in the nation of Australia” and provides a range of educational
services to the students of Australia (Academies.edu.au. 2018). It is “significant to note that
the company” has tie ups with more than “250 qualifications across campuses in Sydney,
Melbourne, Brisbane, Perth, Adelaide, Dubbo, the Gold Coast, Armidale and Singapore” and
helps the students not only for their admission purposes but also for their course work as well
(Academies.edu.au. 2018). An analysis of this particular company on the “Blue Ocean
Strategy” would reveal the following facts-
The “Blue Ocean Strategy” comprises of an innovative product or service offered by
a particular company or business organization which is very revolutionary and is not being
offered by the other companies or the business organizations (Kim and Mauborgne 2014).

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Following this strategic framework the business organization “Academies Australasia Group
Limited” offers not only admission help but also provides educational guidance with the
course work of the students (Academies.edu.au. 2018). It is significant to note that is a
service which is not offered by any other educational company in the nation of Australia.
Most of the educational companies of the nation of Australia offer only admission guidance
to the students and the educational guidance with the course work. Furthermore, the cost of
the services offered by this particular company is very nominal in comparison to the services
offered by the company (Academies.edu.au. 2018). Thus, it can be said that the company
“Academies Australasia Group Limited” following the precepts of the “Blue Ocean Strategy”
offers unique service to the students which are not being offered by the other educational
companies in the nation of Australia and this particular strategy has helped the company to
become one of the leading educational companies of the nation of Australia (Kim and
Mauborgne 2014).
Agriculture Industry: ITOCHU Australia
The Australian company “ITOCHU Australia” was founded around 60 years ago and
is a collaboration of the Japanese company “ITOCHU Corporation in Japan” (Itochu.com.au.
2018). The company “ITOCHU Australia” initially started “its business in Australia by
buying and exporting wool” (Itochu.com.au. 2018). However, presently the business
organization offers a range of services to the customers like “trading in primary and natural
commodities such as iron ore and coal, grains, wood chips and foodstuffs, as well as
materials such as chemical products” (Itochu.com.au. 2018). It is a reflection of this that the
business organization in the last 60 years has become “one of the largest business
organizations in the nation of Australia” (Itochu.com.au. 2018). An analysis of the company
“ITOCHU Australia” on the “Ansof Matrix” would reveal the following facts-

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It is significant to note that following the strategic framework of the tool of “Ansof
Matrix” the company uses the concept of market penetration “to bring about the overall
growth as well as the development of their overall business activities” (Itochu.com.au. 2018).
Therefore, the company always keeps the prices of its products very low in a bid to reach out
to a larger proportion of population (Hussain et al. 2013). Furthermore, the company also
relies on effective promotional and distributional networks for the purposes of the promotion
as well as the distribution of their products (Itochu.com.au. 2018). In addition to that, the
association of the company with the Japanese company “ITOCHU Corporation” is
considered to be an added advantage for the Australian company (Itochu.com.au. 2018).
Furthermore, the company has entered into various collaborations with the other Australian
companies like “CITIC and the CP Group” (Itochu.com.au. 2018). Moreover, the company
also takes the help of the practice of “modest product refinements” for the development as
well as the manufacture of their products (Itochu.com.au. 2018).
Conclusion
To conclude, it becomes apparent that the competition faced by the various business
organizations in the present times has increased in an exponential manner. Therefore, most of
the “business organizations in the present times often take the help of the various strategic
frameworks to analyze the level of competition faced by them” and also “to devise the
relevant strategies for the mitigation of the competition” faced by them. It is “significant to
note that in the present times the range of strategic frameworks” available to the various
business organizations are numerous and thus they take the help of the strategic framework
which suits the nature of their business in the most effective manner. it is significant to note
that these strategic analysis framework tools not only help the various business organizations
to analyze the level of the competitions but also tells them about the various strategies which

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they need to follow to outrival their competitors in the business market and also tells them
about the way they need to design the products or the services offered by them to the
customers.

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References
Academies.edu.au. 2018. Academies Australasia. [online] Available at:
http://www.academies.edu.au/ [Accessed 16 Apr. 2018].
Barney, J.B., 2014. Gaining and sustaining competitive advantage. Pearson higher ed.
Cosmostours.com.au. 2018. Best Value Holiday Packages | Cosmos Tours. [online] Available
at: https://www.cosmostours.com.au/ [Accessed 16 Apr. 2018].
Hussain, S., Khattak, J., Rizwan, A. and Latif, M.A., 2013. ANSOFF matrix, environment,
and growth-an interactive triangle. Management and Administrative Sciences Review, 2(2),
pp.196-206.
Itochu.com.au. 2018. ITOCHU Australia Ltd.. [online] Available at:
http://www.itochu.com.au/profile.html [Accessed 16 Apr. 2018].
Kim, W.C. and Mauborgne, R.A., 2014. Blue ocean strategy, expanded edition: How to
create uncontested market space and make the competition irrelevant. Harvard business
review Press.
McGrath, R.G., 2013. The end of competitive advantage: How to keep your strategy moving
as fast as your business. Harvard Business Review Press.
Porter, M.E. and Heppelmann, J.E., 2015. How smart, connected products are transforming
companies. Harvard Business Review, 93(10), pp.96-114.
Wagner III, J.A. and Hollenbeck, J.R., 2014. Organizational behavior: Securing competitive
advantage. Routledge.

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