Strategic Analysis of a Multi-national Organisation

Running Head: MANAGEMENT 0
STRATEGIC MANAGEMENT

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Executive Summary
This report outlines strategic analysis of a multi-national organisation i.e. Jetstar owned by
Qantas in relation with various management framework and perspective like PEST tool,
VRIO framework, Five forces model and so forth. Jetstar is one of the leading LCC having
operations in mainly Australia, New Zealand and some other Asia-Pacific regions. The
company is currently on maturity stage of the industry life cycle pushing hard to extend its
business under the umbrella of Qantas. The company gain competitive advantage through its
significant value added activities and improve the consumer experience by strengthening its
functional level strategies.

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Table of Contents
Introduction................................................................................................................................3
External Analysis.......................................................................................................................4
PEST......................................................................................................................................4
Industry Life Cycle Process...................................................................................................5
Five Force Model...................................................................................................................7
Internal Analysis........................................................................................................................9
VRIO Resource Model...........................................................................................................9
Competitive Advantage, Profitability of Company, Value Creation of the Company........10
Functional Level Strategy to increase quality, innovation, efficiency and customer
responsiveness......................................................................................................................11
Conclusion................................................................................................................................13
Recommendations....................................................................................................................14
List of References....................................................................................................................15

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Introduction
Jetstar is a low cost airline company, formed by the Qantas Group in 2003 and today, its aims
to provide low fares and allow more people to fly various places. Since its incorporation, the
Jetstar Group have make travelled nearly 250 million customers and the group also known to
be Asia Pacific largest low fares network in terms of revenue. More than 5000 flights carriers
associated to Jetstar Group operate to nearly 85 places in a week (jetstar.com, 2020). All
subsidiaries of Jetstar Group have gained various awards while being recognised by the
passengers and industry leaders such as top 10 safest LCCs globally by airlineratings.com,
best low cost carrier by Travel Weekly Asia 2017, Partner of the year 2012 with Changi
Airline Awards and so forth (jetstar.com, 2020a). In relation with Jetstar Group fleet, they
have various value based carriers offering low fares throughout Australia, New Zealand and
the Asia Pacific region. Some of its impressive fleets include Boeing 787 Dreamliner, Airbus
A321neo, Airbus A320 and Airbus A321. Hence, the dual brand approach with Jetstar and
Qantas continued to offer them a leadership position in the corporate, premium leisureliness
and budget travel groups, all with strong margins.