Competitive Analysis
Mintzberg’s 5ps of Strategy
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Form of strategy |
Statement/phrase in case |
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Plan |
The basic plan of Jetstar is to become a low-cost rival in the airline industry. Supporting to this fact, De roos et al. (2010) stated that Jetstar offers competitive ticket pricing against the competitors like Tiger Airways and Virgin Blue.
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Ploy |
The competitive pricing mentioned in the above table can be considered as a ploy of Jetstar, as it has helped the brand building a potential identity in the airline industry. |
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Perspective |
The business perspective of the Jetstar is to provide high-quality status and service to the customers to attain a significant brand positioning in the marketplace. The view of the business is to capture greater market share in the domestic airline market, especially for the customers having low to medium income group. |
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Pattern |
The current market pattern includes operation in Australia, New Zealand and Asia Pacific region. The design also includes serving customers from 18-30 yrs age having a small to medium income capacity. The short distance flights also offer meals to every client. Thus, the business pattern provided by Jetstar can be considered ‘economy class offerings’. |
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Position |
The brand is currently positioned to serve a particular type of user. The individuals with a low to middle income having the need of cheap flights have been posted by the Jetstar. The market segmentation has been prioritised on geographic, psychographic, demographic and behavioural variables. |
Balance Scorecard
Financial Perspective:
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Parameters |
Current scenario |
Initiatives to enhance |
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Revenue Growth |
In the FY 2015, Jetstar’s revenue margin has increased by 9%. |
The proportionate increment in the service lines and the price ranges. |
Customer Perspectives:
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Parameters |
Current scenario |
Initiatives |
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Service proportions |
The service ranges have been improvised with various facilities |
Conducting the survey techniques to receive further feedbacks on the offered services. |
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Customer feedbacks |
Customer feedbacks are taken to understand the improvement criteria. |
More connecting methods are planned to introduce to increase more engagements with the customers |
Internal Business Process:
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Parameters |
Current scenario |
Initiatives |
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Productivity
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I n FY 2014, Jetstar’s profit margin increased up to $975 million. |
Lowering the price ranges of the economic classes to increase the customer base in the middle economic classes. |
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Control and monitoring |
The control team evaluates on the viability of the updated strategies (KimHyeonCheol and Hong, 2013). Based on which the implementation is done. |
Various training and the developmental session would be conducted to increase the expertise of the resources operating under the control and monitoring unit. |
Employee Learning and Growth:
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Parameters |
Current scenario |
Initiatives |
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Training and development |
Persistent vocational training sessions are conducted for the front, and the cabin line staffs. |
Recruiting the professional trainers to further improve the learning and developmental methods. |
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Improving the innovativeness through R&D |
The R&D team is instructed to research on the prospects that would be unique to the markets. |
The management of Jetstar has enhanced the investment over its R&D team for being persistent with its creations. |
References:
De roos, N., Mills, G. and Whelan, S. (2010) ‘Pricing dynamics in the Australian airline Market, Economic Record, 86(275), pp. 545–562.
KimHyeonCheol and Hong, K.-W. (2013) ‘A study on the relationship between service quality dimensions and business performance of small-scaled farm using balanced scorecard(BSC) measures’, Jounal of Korea Service Management Society, 14(1), pp. 97–114.
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