Strategic Analysis Of Ozjet Airlines Company Tourism Essay Essays

Strategic Analysis Of Ozjet Airlines Company Tourism Essay Essays Strategic Analysis Of Ozjet Airlines Company Tourism Essay Paper Strategic Analysis Of Ozjet Airlines Company Tourism Essay Paper Airline industry can be treated as one of the largest and turning industries in the universe. With the last few old ages the growing happened in air hose industry was marvelous. It showed a 7 % annual growing in last twosome of old ages about. International concern enlargement increased the demand for air hose manner of travel. The figure of peoples who is making international concern has been increased every bit good. This factor has promoted air hose industry as a whole. Airline industry enhances planetary trade, international investing, touristry and economic development of the state every bit good as the universe. Just like growing in concern going travel to touristry finishs besides shows inclination to turn. Services to leisure finishs have been increasing twelvemonth by twelvemonth. Less cost air hose going is available now which is impacted by cut pharynx competition among air hose companies across universe. Now a twenty-four hours people can more depend on air hose manner of transit for going between little metropoliss and less developed states besides Strategic analysis of Ozjet Airlines Company, Australia. Ozjet Airline Company born in Australia and it started its operation on November 29 in 2005 onwards. The laminitis or male parent of Ozjet Airline Company was a Formula One Millionaire and squad proprietor of Minardi rushing called Paul Stoddart. It started its map by utilizing BAe146 aircrafts by serving between domestic secondary airdromes in Australia. It operated between Sydney-Melbourne air paths by following low cost scheme. Ozjet started its operation with a slogan of geting 10 % market portion in air hose industry of Australia. They put an advertisement word in forepart of the clients called you re in Business . But the state of affairs in the market was really worst. They had cut throat competition from the side of outstanding Australian air hose companies like Qantas, JetStar, Virgin Blue etc. Ozjet felt excessively much battle for prolonging in the market. As a consequence of this killing experience from Australian air hose market, they compelled to denote something in imperativeness nine. In March 2006, the president announced that Ozjet has made about 10 million $ loss within really short span of clip and investors do nt desire to keep their portions further. And so they are traveling to discontinue all their existing services. After this Ozjet became a private charter flight runing with less figure of staffs and smaller fleet by offering flight from Norfolk Island to Sydney and Brisbane for Norfolk air. Environmental analysis: External environment analysis External environmental factors are as its name indicates those factors outside the organisation. These factors provide either assorted chances or menaces to the company. External environmental factors would be beyond the control of the organisation and so concern has to be really acute on analysing those factors. This factor involves factors like economical, political, technological, competition, governmental and assorted planetary issues. A strategian must analyse the external factors and its impact as good. Now allow look into assorted external factors that affected Ozjet Airline Company: PESTLE Analysis: Economic status Economic state of affairs of the state will impact in big measure while explicating assorted schemes of any concern. Each motion would with the path of economic status of the part or state. Equally far as Australian economic system is concerned, they have one of the strongest economic systems of all time in the universe. During the period of 1996-2005 they had the GDP of 3.2 % . The unemployment rate is besides really low rate at 4 % . ( Australian Bureau of Statistics ) . Ozjet Company here got a good solid economic system in Australia. So they can get down their services to hook up with the economic system of Australia. Since they have more concern class of people more concern category services can be make help. Here travellers looking for more premium services instead than any other factors. Demographic Factors Entire clients in the market are divided or grouped on the footing of some properties like age, sex, instruction etc. This is known as demographic alterations of the market topographic point. As far Australian demographic characteristics are concerned it has turning people across. 20 1000000s peoples are at that place in Australia about. One tierce of this population belongs millennian coevals that is coevals Y. Millennial coevals class people should be the right mark for an air hose company at this peculiar scenario in Australia. They can accomplish more market portion by sectioning this class of people. Servicess should be focused on concern class of people as good. This peculiar class of people includes concern professionals aging between 35 and 55. Ozjet start services in Melbourne-Sydney path. In this environment Ozjet has to aline its services and agendas to carry through the demands of metameric class of people. Social and cultural factors Socio-cultural factors of the state depends upon believes and attitudes of the people in the state or a part. Attitudes of the people are of all time altering conformity with the alteration in manner and tendency. Equally far as the modern attitude or civilization of air hose travellers are concerned, they have more concern on environment. Since they all have good consciousness in planetary heating and all they becomes more environment friendly. While taking an option during their travel through flight travellers are more selective today. Today, people particularly youth likes to see more leisure topographic points across the universe. They want more merriment and enjoyment to review their busy and caput breakage concern life. So, services to leisure finishs are really needful and profitable one today. ( Aviation statistics 2004-2005 ) Another most of import tendency sing air travel is that about clip agenda of flights. Peoples are more concerned about their clip and its value. Here Ozjet need to set their services harmonizing to installation of concern people who are the possible clients of the company. ( Jamie Freed, April 16, 2005 ) . Political and legal issues Political factors of the state are really much act uponing a concern for specifying and explicating its schemes. Country s political regulations and ordinances are of all time altering conformity with the alterations in regulation of state and different policies of different parties. In Australia, there is a devolving tendency in political relations. But assorted parties are bring forthing the political regulations in Australia. Assorted internal political alterations happened in Australia and these were rather adequate to impact the air hose industry in Australia. Political factors of Australia affected Ozjet Company every bit good. For illustration, some politicians had welcomed Ozjet for advancing touristry sector of Australia by serving assorted trips to tourist finishs with cheaper rate. But Ozjet faces some jobs from some residential political groups besides. ( John Masunaukas, April 5 2004 ) . Technological factors Technological alterations go oning across the universe is of import external factor to influence concern. Each industry should really lament on engineering to hook up with alterations. Like any other industry air hose sector besides witnessed a batch of technological alterations. Popularity of computing machines and cyberspace which happened late do more convenient to clients for covering their personal businesss sing their travel. A batch of flight package has been developed during last twosome of old ages. Online engagement of tickets for travel make roar impact in air hose field. The most of import advantage of this technological promotion is that cost decrease and efficiency. By following new engineering company can cut down its operating cost and therefore addition market portion through monetary value leading. The fact is that company should concentrate on updating their engineerings. Ozjet Company adopted assorted engineerings for their flight package and online booking system every bit good. Global or international issues Global issues are rather plenty to destruct a concern like air hose industry. Because, air hose concern is one that spread to all over the universe and each company depends on each state every bit good. Here are some illustrations of universe issues that affected air hose industry as a whole. September 11 World trade Centre onslaught by terrorist made a feel problem for travellers across the universe. Tourism sector faced really crisis state of affairs during that clip. The figure of travellers particularly to tourist finishs reduced dramatically. Airline industry faced large problem hare. Many terrorist onslaughts had been happened late across the universe. Iraq war, Kuwait war, Israel-Palestine issues are the illustrations of some planetary issues. Oil monetary value hiking happened late is one of the most poignant issue of air hose industry. The operating cost of an air hose company is really much affected by oil monetary value. This hiking is affected Ozjet more than any other air hose companies because, they had been supplying low cost services to assorted finishs in Australia. So, when the oil monetary value increased, they felt excessively much battle to prolong in industry. Decision Opportunities and menaces of Ozjet: They have got a better demographic environment in the part that would more fiting with an air hose company. They have got advantage of societal and cultural factors of the state. They have got better economic conditions in the state that can run with more smoothly. Ozjet witnessed compliment from the authorities for back uping touristry industry. They have faced some jobs from regional political parties. They had been faced more planetary issues like wars and terrorist onslaughts. Oil monetary value hiking was major menace faced by Ozjet. Ozjet faced cut pharynx competition from assorted companies like Qantas and Virgin Blue. Competitor analysis of Ozjet Equally far as Australian air hose industry is concerned, there have a batch of companies runing every bit good and therefore the degree of competition besides really high. Here we can take a comparative analysis about assorted rivals of Ozjet Company which made tough state of affairs in the market. Qantas Qantas is a benchmarking air hose company born in Australia. They are maintaining certain international criterions across the universe. Ozjet has strong fiscal foundation and maintaining good gross and operating hard currency flows ( Qantas Annual Report 2006 ) . Jetstar Jetstar is one of the late launched Australian companies that achieved 14 % of market portion within really short span of clip. Virgin Blue Virgin Blue is another Australian Company that keeping 30 % of market portion. They started to run in 2000 and serving more than 2,100 flights in a hebdomad. 2005 Qantas Jetstar Virgin Blue Gross $ 12.64 Billion $ 515.6 Million $ 1.76 Billions Exabit $ 1,121.7 Million $ 44.1 Million $ 570.1 Million Net Net income $ 763.6 Million Sodium $ 168.2 Millions Passengers Carried 32,658 Million gt ; 4 Million 10,484 Millions Employees gt ; 38,000 gt ; 1,200 gt ; 4000 Passenger Output 10.64 cents Sodium 10.47 cents Entire Cost per ASK Sodium 8.00 cents 7.66 cents Intangibles Strategy Launched no-frills LCC Jetstar Launch of int. LCC runing in Nov 2006 LCC, but now plans to draw concern riders Analyze through Porter s Five Force Model. Competitive competition Menace of new entryway Dickering power of clients Dickering power of providers Substitute merchandise 1 ) . Menace of New Entrance: New entry in to the market is hard state of affairs for any concern. While new companies come ining competition among companies would raise and it compelled to follow certain schemes. While Ozjet was runing in Australian industry some new air hose companies started its operations as good. Whenever there is better range for concern the possibility of new entryway is more and if the handiness of recognition is sound, companies would thirstily come in in to the market. Both factors are really good in Australia. Airline Company like REX entered market and made menace for Ozjet every bit good. A company which holding nice trade name name and good will can entice the clients even if there have menace from new entryway. 2 ) . Competitive competition: Competition from competitions are chief menace which any concern house traveling face of all time. There would hold batch of houses which bring forthing or serving same class of merchandises. To undertake with competition is chief challenge a concern house traveling to face. Equally far as Australian air hose industry is concerned, the degree of competition is really high. Outstanding air hose companies like Qantas, Jetstar and virgin Blue are set their criterion and trueness in the head of travellers. Ozjet is runing in this sort of tough scenario really. Ozjet has to explicate particular schemes to entice the travellers in Australia. There are a batch of air hose companies in Australia like REX, Air north and SkyWest. 3 ) . Dickering power of purchasers: When there is dickering power from purchasers company would hold to follow assorted schemes like monetary value cutting etc. Since the Australia air hose market is under oligopoly system there is no more bargaining power from purchasers. Because about all companies supplying same sort of services with same cost. More than this Australian travellers belongs more concern class of people they are really loyal to trade name line Qantas, Virgin Blue. So at that place non hold more bargaining power from the side of clients. 4 ) . Dickering power of providers: Smooth supply of stuff is needed any sort of concern. Equally far as air hose company is concerned oil and airdromes are of import supply. Ozjet had been confronting high degree of bargaining of providers. When the oil monetary value hiking happened, it faced a high deficit for oil. Ozjet besides find trouble to acquire airdromes for doing services to assorted parts of the state. It is so happened that handiness of supply is less in this field. ( John Masanaukas, March 9, 2004 ) . 5 ) . Utility merchandise: As Porter explains any merchandise would hold a menace from its replacement sort of merchandises. Like other states, in Australia besides there are replacement for flight such as Trams, Trains, Buses and autos. So Ozjet company confronting menace from this kind of replacement manner of conveyance available in Australia. But the instance is that for travellers like concern professionals, they are non taking any replacement of flights for their regular travel and all these replacements are affected by environmental alterations besides. Presentation1.jpg Internal environment analysis Internal environment involves company s internal facets which are under the control of the house such as clients, providers, aims of the house. Analysis of internal environment involves critically analysing about assorted strength and failings of the company that within the organisation. During the internal analysis of the company direction will come to cognize about the place of company that where we are standing right now. Now allow analyze assorted internal factors affected Ozjet Airline Company: Physical and technological: While talking approximately physical substructure and engineering of Ozjet Airline Company, they have good sort of materials. Very rapidly after its launch in 2005 started to service hired flights. Subsequently in 2008 they began to serve Being 737-300s and 737-400s which are more oil efficient. But that was excessively late to follow new engineering. They had a good Research and Development Department. They have got good office and mill substructure besides. Fiscal Ozjet had good fiscal capablenesss. But they have failed to use these capablenesss even though they have got good fiscal foundation as good. In March 2006, their president announced that Ozjet had made loss of about 10 million $ within this changeable span of clip. For accomplishing fiscal stableness they have sold all their involvement to an Australian cargo operator HeavyLift. In March 2006 they declared to discontinue all bing services. Brand Reputation Customers have more penchant on their loyal trade name. In air hose industry, travellers are taking more reputed trade name for their travel. In Australia more figure of travellers belong concern professionals. So repute of trade name is more of import to entice the travellers. A people study conducted in Australia shows that trade name name of Ozjet itself non giving attract. Brand does non giving a feel of premium merchandise. It is like a discounted flight. So it is clear that trade name repute of Ozjet in Australia is non good. Invention Invention of new thought is a large plus point or a turning point for any company. Before the rivals coming with new engineerings and thoughts we should comes look to follow latest thoughts. Equally far as Ozjet is concerned it developed new engineerings and inventions in the field but they were excessively late to follow these thoughts. Main competitions had adopted all these before they coming to patterns. Online ticket engagement system, flight package are illustrations of new engineerings in air hose field. Human factors Human resources are cardinal component of any organisation. Without holding a nice human squad in pattern, a house can non travel in front. It acts as a nervus system of concern. Human organisation of Ozjet was non bad. But their organized work does non happen any good consequence as much. They had to work like an oiled machine to accomplish the organisational end. Decision: Strengths and Weakness of Ozjet Ozjet had better fiscal background They have got better physical and substructure installations Ozjet received worst advertisement and selling schemes Marketing planning by the direction was really hapless Their trade name name and logo was non conveying a premium message Their invention squad was non much up to day of the month SWOT analysis of Ozjet Airline Company: Strength: Good Financial background. Better human resource. Good Physical installations. Technological improvement. Failing: Bad repute. Bad trade name name. Poor selling planning. Poor selling schemes. Poor client base. Poor clip programming. Opportunities: Better economic status of the state. Better demographic construction suitable for an air hose market. Fair socio-cultural factors of the state. Suitable political state of affairs of the state. Received compliment from authorities for advancing touristry. Technological promotion go oning in company every bit good as in the industry. Menaces: Cut pharynx competition from competitions like Qantas, Virgin Blue. Recent oil monetary value hiking. Attacks by terrorist. Wars and other planetary issues go oning among states. Substitute options available in the state. Dickering power of providers. New entryway to the market like REX. Why Ozjet has failed Australian air hose industry is one with which plagued by monetary value film editing and price reduction participants. There have crumpling client service and satisfaction. Ozjet has failed in Australian air hose industry. It is said that Ozjet started in 2006 and disappeared in 2007. Some of the reasoned behind failure of Ozjet was: Establishing season: The launching of Ozjet was in a pre Christmas season. This season was a holiday season as all the concern class of people traveling for leave. Ozjet had to do service with empty place which is terrific state of affairs for any air hose company. So launching clip of Ozjet becomes a ground for failure. Time Agenda: There were non many services for Ozjet across the state. Actually travellers want frequent travel as they are concern people. They do nt hold patients to burden following four or five hours in airdrome for flights since so many other services are available. Merchandise: Now a twenty-four hours, travellers are keener on the merchandise or service that they are traveling to devour. Flights like Boeing 737-200s was non a merchandise that giving more premium value to travellers. More latest and efficient flights are available now. Stigmatization: Travelers are more trade names loyal today. There have sentiments that the name Ozjet does non given an attractive feeling. And, the logo of the company was besides non good. Customers get a feel of a discounted merchandise. They want more premium merchandise now. Advertising A ; Placement: Advertising scheme of Ozjet was non superb. Ozjet s logo merely looks like skywriting. To entice more travellers from the Australian market, Ozjet had to make category advertisement schemes every bit good. Australia includes more concern travellers every bit good. Ozjet could non specialise on that class of people by following assorted positioning schemes. Lack of trueness strategies: Ozjet did non allowed such going strategies to travellers like frequent circular plans, club sofa etc. they could non do more confederation international bearers. Terminal entree: More than any other factors like invention, R A ; D etc. clients are looking for entire bundle upfront. In short, even Ozjet concern category could non contend with the Qantas domestic economic system category. By the above word merely thing is really clear. Suggestions Ozjet company launch timing was non good. They can do a launch after doing a comprehensive market analysis. They can re launch in market by following new trade name name and logo. They can regenerate their clip agenda by serving more flights. They can follow assorted advertisement and promotional schemes as good. They can do rhenium launching after more inventions and R A ; D. Flights should give more effectivity and certain criterions. Decision Ozjet is an Australian air hose company that launched in 2004 and ceased their operations within two old ages merely. Their failure caused by careful advertisement and placement schemes. Their flights were non more advanced and so they could non execute such an efficiency and criterions. In short, Ozjet s concern categories were non adequate criterions even to contend with Qantas domestic category.