Assessment4 Topic: IdeationandValuePropositionDesign Submission: SubmittheReportonMoodleby(Week11)23:55onSunday31January2021...

INFORMATION TECHNOLOGY
Table of Contents
Introduction    4
Background of the company    4
Porter’s Five Forces Model    4
Core Competencies    6
Core Advantages    7
Marketing Strategy    7
Analysis of Investments    9
Conclusion    10
References    11
Introduction
The report is designed to enhance the understanding of strengths of the IT leader Atlassian in Australia. The study of competencies and their advantages of the company indicated that they had their own role to play in its success. The impact of environment on its business and the strategic way it took to be billion dollar company. The models they focused and the capability of resources they relied on gave them scale of operations and helped to stay ahead in competition. The innovative product base and the delivery with sanity and confidence made them the most preferred in the industry.
Background of the company    
Atlassian was started by Mike Cannon-Brookes and Scott Farquhar in 2002. They work with a mission to tap the potential of team at large. The values they hold are that believe in serious business and stand by them. They work as a team because it is important for organizational growth. They put their best efforts in to project and balance the results. They respect customers and believe in change management. They are agile in doing business. They have global offices in seven countries (Atlassian , 2020).
Their products include Jira Software which was launched Jira 1.0 in 2002 and helps in planning, tracking, releasing and reporting. The tasks can be divided among team members and tracked on prioritize basis. It is shows information based on updated data and reports are generated on real time basis. Confluence 1.0 was introduced in 2003 and it is a product which helps in managing remote teams. It connects different departments and ensures easy flow of information. It is an organized workplace in online space (Atlassian, 2002). Another star product is Bitbucket which is code management program. It gives options of unlimited repositories and can be easily integrated with Jira and Trello. It helps to build, test and give feedback in loops.
Porter’s Five Forces Model
Michael Porter in his one of the revolutionary article “ Five Forces that Shape Strategy” described five forces and their undeniable impact on profitability of an organization. It not only analyse competitive environment but also enhance strategic decision making. Altassian can develop sustainable competitive advantage and can explore profitability in the sector. The five forces are:
Threats to new entrants
Bargaining Power of Suppliers 
Bargaining Power of Buyers 
Threat from Substitute Products 
Rivalry among the existing players.
Threat of New Entrants: New entrants in IT sector brings innovation and will create pressure on pricing for Atlassian. It will impact cost reduction process by providing new ideation and value propositions to customers. It is important to build barriers and safeguard competitive edge.
It can dealt by constantly focussing on innovation so that existing customers stay loyal and potential customers can be attracted. The cost for developing new technologies can be reduced so the window of extraordinary profits shrink in its size. The R&D can be strengthened and build capacities so that new players will find it less attractive to enter the industry.
Bargaining power of suppliers: Suppliers are essential for the supply of raw materials and their dominance can negatively impact Atlassian. It will reduce profit margins thus impacting prices. When suppliers are more powerful during negotiation then they draw high prices from the companies and supply of material is according to their terms and conditions. It cuts margins and thus disturbing economies of scale. Atlassian can develop new suppliers and add them to the system. It should experiment with new material so that alternative is always ready in case of price shoot up.
Bargaining power of buyers: Buyers are important and their requirements are even critical as it led to innovation. Small customer base gives them power to bargain more and affect profitability in long run. Thus, Atlassian needs to increase its customer base which will contribute in streamlining sales and production. As innovation is on rise new products will help in controlling bargaining power of customers and reduce the defection of existing customers.
Threats of substitute products and services: As new entrants and established players are present new products increase competition and witness shift in customer preferences. It impacts profitability. This situation can be handled by being responsive towards service equally. It should involve rigorous follow up...