Atlassian Report: Analysis of Macro Environment, Industry, and Company

This report offers a comprehensive analysis of Atlassian, an Australian software company, encompassing macro-environmental factors, industry dynamics, and internal company assessments. Employing PESTEL analysis for the macro-environment and Porter's Five Forces for the technology industry, the report evaluates political, economic, social, technological, legal, and environmental factors impacting Atlassian. It examines the company's strengths, weaknesses, competitive advantages, and strategic approaches, including its distribution model and product strategy. The analysis identifies opportunities and threats, culminating in a conclusion that underscores Atlassian's significant impact on the technology industry, its focus on customer satisfaction, and its strategic planning. The report also includes a competitor analysis, highlighting key players like IBM, Microsoft, and Google, and concludes that the company's biggest strength is its uniqueness and its biggest weakness is limited revenue sources.

Running Head: ATLASSIAN 1
Atlassian
(Student’s Details)

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Executive Summary
The report consists of macro environmental analysis, industry analysis, company analysis,
competitor analysis and strategy analysis of Australian technology company Atlassian which
operates business in six prominent nations. To analyze macro environmental factors, report uses
PESTEL analysis and to analyze the technology industry Porter’s 5 forces analysis the best tool.
Internal analysis includes strengths and weakness of the company which clarify about the
opportunities for the company.

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Contents
Introduction......................................................................................................................................4
Macro Environmental Analysis.......................................................................................................4
Political Factors............................................................................................................................4
Economic Factors.........................................................................................................................4
Social Factors...............................................................................................................................4
Technological Factors..................................................................................................................4
Legal Factors................................................................................................................................5
Environmental Factors.................................................................................................................5
Industry Analysis.............................................................................................................................5
Company Analysis...........................................................................................................................5
Competitor Analysis........................................................................................................................5
Internal Analysis..............................................................................................................................6
Strengths.......................................................................................................................................6
Weaknesses..................................................................................................................................6
Competitive Advantage................................................................................................................6
Strategy Analysis.............................................................................................................................6
Opportunities for Atlassian..........................................................................................................6
Threats for Atlassian....................................................................................................................6
Conclusion.......................................................................................................................................7
Reference List..................................................................................................................................8

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Introduction
The following report describes about the macro environmental factors, such as industry factors,
environmental factors and competitors, which impact the company Atlassian.
Atlassian is an Australian software company headquartered in Sydney, established in 2002.
Company was founded by Scott Farquhar and Mike- Cannon- Brookes to provide collaboration
application and productivity tools that helps companies to collaborate successfully (Atlassian,
2019a). The company have active monthly users are about 5 million and 51000 organization
clients including Facebook, Netflix, Coca-Cola, Procter & Gamble, Citigroup, Visa, eBay using
its software products. Products of Atlassian include BitBucket, Hipchat, JIRA Software,
Sourcetree, Bamboo, Trello Statuspage and Confluence (Atlassian, 2019b).
The report will be comprises of company introduction, general environmental analysis, industry
analysis, competitor analysis, internal analysis, SWOT analysis, strategy formulation and
strategic alternative implementation. The analyses are useful for identify the competitors and
allows creating an effective strategic recommendation.
Macro Environmental Analysis
To analyze the macro environmental factors, PESTLE is very effective method. PESTLE
includes six segments which are politics, economic, social, technology, legal and environment
(Anon., 2015).
Political Factors
Atlassian is operating its business in six countries; Australia, United States, Philippines, India,
Netherlands and Japan. These countries are in different continents, like other multinational
companies, Atlassian has to pay huge amount of taxes. In US and Netherlands, tax rates are also
high and high tax rates increase the subscription rates of products of Atlassian (Zou, 2011).
Economic Factors
GDP factor and inflation rates tend to have an effect on the consumer’s purchasing ability. The
economic condition of any country affects the purchasing power of consumers directly or
indirectly. Atlassian operates business in six prominent locations and among these locations,
Philippines is only a country whose economic condition is not good. Hence, Atlassian has fewer
risks to suffer from any change in the economic factors (Perera, 2017).
Social Factors
Atlassian is vocal about being a defender of consideration for all. The tech company Atlassian
developing their business and company donates a particular amount from profit. Atlassian also
help children to receive education in developing countries. These values impact the customers
because many customers support these values. This is a positive factor for Atlassian (Blokdyk,
2018).
Technological Factors
Technology industry is growing very rapidly and generating high competition for other
companies. Because of advance technology, Atlassian also faces high competition. But keep this

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fact in mind, Atlassian spending huge amount for the technological improvement. In two years,
Atlassian spent US$247.6 million for research and development work.
Legal Factors
Legal factors could have negative effect on tech company Atlassian. Most important legal factor
which may impact the Atlassian is security laws. Atlassian could be impacted by higher standard
of security for product development and delivery (50MINUTES.COM, 2015).
Environmental Factors
Climate change is environmental factors which can impact the Atlassian but company has CSR
(Corporate social responsibility) to decrease their impact and effect on environment (Miller, et
al., 2011).
Industry Analysis
To analyses the tech industry, Porter’s Five Forces Analysis is a best tool. Porter’s Five Forces
Analysis will help to understand the competitive powers of the technology industry. With this
analysis, company will be able to identify the threats of new competitors, power of suppliers,
power of buyers, competition within the industry and threat of substitutes (Atlassian
marketplace, 2019).
It is very easy for companies to enter in technology industry and due to this fact, Atlassian’s
competition level is high but it is very difficult to make position in this industry. Hence, threat of
new competitors is medium. On the other hand, the power of suppliers is high because, in tech
industry, the main source of company’s success is highly skilled employees. Thus, they have
power to charge extra price and negotiate the salary. Unlike suppliers, buyers have less power.
The cost of software and technology industry is high due to huge scope. Threat of substitute is
the fourth force which is medium for technology industry. This industry is growing very rapidly
and these solutions are available for any task, industry and imaginable range of price. The last
and final force is competition within industry which is very high for tech industry.
Company Analysis
Atlassian was established in 2002. Atlassian Corp, PLC which is the parent company of
Atlassian was incorporated in UK. The company’s customer base spread across more than 170
nations and it has more than 60,000 customers in all industries. Atlassian operates business in
software industry for the workplace software for business- to- business (B2B).
Competitor Analysis
There are some key factors of success which impact the business in software industry and these
factors are flexibility, product capabilities, ease of use and access, ownership cost, scalability
integration, performance and global reach. Atlassian distribute its competitors in three parts
based on products: Service teams, technical and software teams, technical and software teams
and business teams (As Appendix). Main competitors of Atlassian are IBM, Microsoft, Google,
ServiceNow, Hewlett Packard Enterprise, Salesforce.com, Zendesk and many more. Many small
enterprise and start-up enterprises also create change in the technology industry (Fleisher &
Babette, 2015).

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Internal Analysis
Internal analysis of company includes the strengths and weaknesses of the company.
Strengths
Strengths show the positive side of company and unique company culture is great strength of
company. Atlassian place high value on employees and customers. Strength of Atlassian is good
knowledge of management. They share their content with the help of Confluence which is a tool
for team content. Quality of software, what they produce and serve, is also strength of company.
Software quality and customer success and satisfaction help company to sell the products
successfully and serve them a unique relationship with customers (Quincy, et al., 2012).
Weaknesses
As the name suggests, weakness shows the negative side of company and it is opposite of
strength. Rapid growth is the main weakness of Atlassian. In annual report of 2016, stated that
number of employees increased every year from 2014 to 2016 and they were working on core
values of company (Atlassian, 2016). But rapid growth cannot be stable for long duration. JIRA
and Confluence are main products or software of the company which is the main source of
revenue. It is also a weakness of the company. If either of these both products are replaced or
threatened by the competitors then this could affect the revenue of Atlassian. Competitive
advantage of company is difficult to maintain and it is the biggest weakness of company.
Competitive Advantage
Distribution model, product strategy and culture of company mainly work to create different
value for their customers and competitive advantage for Atlassian. Atlassian’s create products
for teams, from startup companies to enterprises. All products of Atlassian are built on the
following elements: easy to use and access, open and integrated, adaptable and versatile.
Distribution model of company is adoption and expansion of products, high velocity online
platform and drive trail.
Strategy Analysis
Atlassian follow a different style of sales and distribution strategy that is very useful to give
competition to other companies. Company use minimum amount on marketing and sales because
all products are available on the official website of Atlassian. Company believes in create new,
unique and great products with low price, pursuing volume, maintain transparency and offer the
trials easy.
Opportunities for Atlassian
The internal analysis identifies the opportunities for the company. One opportunity for company
is make investment in human resources to protect the company culture. Atlassian should invest
more in the marketing of company because marketing is a source to increase sales of products,
and it also adds competitive advantage and values to products of Atlassian.

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Threats for Atlassian
High competition is the biggest threat for the company because tech industry is developing every
day and creating a unique impact on other industries. This development allows other companies
to enter in this industry which can create threats for the Atlassian.
Conclusion
From the above discussion, it can be concluded that Atlassian creates a huge impact on
technology industry. Company spends huge amount in creating new and innovative products but
not spending in marketing and sales of products. Industry analysis clarify that Atlassian is the
biggest company of this industry and serve very unique and ease of access products to customers.
Company follows core values and company culture very seriously. Company follows many key
factors such as strategic planning, corporate culture and strategic intents.
It can be concluded from the internal analysis that company biggest strength is uniqueness of
company and biggest weakness is limited source of revenue. But the overall analysis identifies
many opportunities for the company. Besides all these things, company specially concentrates on
satisfaction level of customers.

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Reference List
50MINUTES.COM, 2015. PESTLE Analysis: Understand and plan for your business
environment. Belgium: 50MINUTES.
Anon., 2015. Analysing the Organisational Environment. Buckinghamshire: Select Knowledge
Limited.
Atlassian marketplace, 2019. Explore apps for Atlassian products. [Online]
Available at: https://marketplace.atlassian.com/
Atlassian, 2016. Atlassian Announces Fourth Quarter and Fiscal Year 2016 Results. [Online]
Available at: https://investors.atlassian.com/financials-and-filings/news/news-details/2016/
Atlassian-Announces-Fourth-Quarter-and-Fiscal-Year-2016-Results/default.aspx
Atlassian, 2019a. About company. [Online]
Available at: https://www.atlassian.com/
Atlassian, 2019b. Products for teams, from startup to enterprise. [Online]
Available at: https://www.atlassian.com/software
Blokdyk, G., 2018. Pest Analysis: Standard Requirements. California: CreateSpace Independent
Publishing Platform.
Fleisher, C. S. & Babette, . E. B., 2015. Business and Competitive Analysis: Effective
Application of New and Classic Methods. US: FT Press.
Miller, F. P., Vandome, A. F. & McBrewst, J. ., 2011. Pest Analysis. Saarbrucken: VDM
Publishing.
Perera, R., 2017. The PESTLE Analysis. South Asian paradise: Nerdynaut.
Quincy, R., Lu, S. & Huang, C.-C., 2012. SWOT Analysis: Raising Capacity of Your
Organization. New Jersey: Rutgers.
Zou, S., 2011. Advances in international marketing. England: Emerald Group Publishing
Limited.

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Appendix
Competitors of Atlassian (Atlassian, 2019a)