JetBlue Airways Corporation – You above all
JetBlue Airways Corporation is a premier non-union airline headquartered in Long Island City of New York, and operating out of John. F. Kennedy airport as its primary base. Several of their initial employees, including founder David Neeleman, were former employees of Southwest Airlines. They brought the low-cost flying experience from their former workplace, but married it to better array of amenities. That helped JetBlue carve a unique identity which competed with major carriers for customer service and rivaled low-cost carriers on price points.
The company background info as of April 2014 is as follows:
Name: JetBlue Airways Corporation (NASDAQ:JBLU)
Industry: Air travela
CEO: David Barger
Headquarters: Long Island City, NY
Employees: 15000+
Revenue: USD $5 billion approx.
Operating income: USD $428 million approx.
Net income: USD $168 million approx.
As an airline corporation serving most of the United States and several international locations, JetBlue burst into the scene and grabbed significant market share. However, with growing reputation came stiff competition from major airlines as the rival brands felt a significant threat. It forced JetBlue to re-think a lot of its business model, from fuel-economy of its carriers to marketing strategy. Nonetheless, a decade-and-a-half since its debut, it holds strong in the highly competitive and fragmented air travel industry, particularly impressive with its customer satisfaction rating.
We seek a broader perspective of JetBlue as we delve deeper into the company profile using Porter’s Five Forces analysis.
Threat of Competition: HIGH
- Highly competitive airline industry. As a low-cost, non-union airline it faces competition from a...
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... The share means Lufthansa family has a significant amount of say in legal decisions, share-holding and business directives.
- Controversies surrounding sudden resignation of company CFO few years back, as well as indifferent customer service during weather-induced disruptions have presented legal challenges for JetBlue in the past.
- California Council of the Blind lawsuit for not making their kiosks and online systems accessible to visually impaired (2010)
Environmental:
- Weather disruptions (especially during winter in northeastern region) are the biggest environmental factor affecting the services. The harsh winters in last few years have challenged their original policy of never canceling a flight
- Eco-friendly technologies are giving back to the environment generously on behalf of JetBlue. From cleaner fuel, to recycled accessories this is a positive factor
...leader. Certainly, it has to take into account the implications of completion from both the direct and the indirect competitors. That is why EasyJet centers on the cost management strategy and the differentiation strategy (Hanlon, 2007). Through an analysis of EasyJet Airplane company strategies and performance, it is clear that they are ambitious and strive for the best. They not only survive in an industry that is intensely competitive, as shown through the analysis by Porter's Five Forces, but also succeed in terms of offering their customers the best that they have to offer in terms of value for money. The advantage this airline gains over its oligopolistic competitors stems from flexible ticketing and complete access to all primary routes. However, in keeping airline industry, there is room for improvement and growth as the analysis using Ansoff Matrix reveals.
United Airlines is one of the largest airlines in the United States and worldwide. Also, it is ranked as the oldest commercial airline that was founded by Walter Varney. United Airlines started as an Air Mail Service and then extended its services to be an Air Carrier. In 1927, William Boeing started his own airline, Boeing Air Transport, and started buying any other air mail companies, which included the Varney’s Air Mail Company. After a while, Boeing started manufacturing aircraft and parts, which allowed him to extend his company to a bigger organization. Also, within Boeing’s company, he bought several airports to expand his organization. In 1929, Boeing’s company has changed its name to be United Aircraft and Transport Corp. (UATC).
More about the Issue Spirit Airline has been in the public limelight for the wrong reasons. Many passenger flights have been delayed for over six hours
The following was completed to assess the strategic direction of Spirit Airlines, Inc. and recommend alternative strategies based on their internal and external environments. This analysis begins with a survey of the firm’s history and competitive landscape. Next, we complete a comprehensive internal analysis identifying Spirit’s key resources and capabilities and assessing their competitive market position. Lastly, we isolated the firm’s key focal points for success and assessed four potential strategies, beginning with the firm’s current strategy.
The Air Canada case contains a problem in the structure of the company regarding how they are sourcing in their supply chain, managing the risk, and growing the company while maintaining their core competencies. Based off the overall information of the reading, Air Canada seems to be making the correct steps in the success of their business. If you look at page 20 of the reading, Air Canada holds a good majority in the domestic, international, and even transborder market shares. The biggest issue with Air Canada is their need to always innovate to be the best airline that they can be and connect Canada to the world. Some of the major factors that play a part in Air Canada’s problem is that they are always in competition with any company that
It has stayed relevant to the market through its propelled philosophy of relationships to generate profits in the business. Since its establishment in Monroe, Louisiana the once tiny airline has stretched to greater heights serving in 6 continents. It has also established a distinguishable name among its competitors with a reputation of leading customer services. However, even as an established venture, the company needs to maximize its profits in order to stay in business and expand in to new territories beyond its conquered boundaries. A strategic analysis was carried out by our team to establish the company’s current situation. A SWOT analysis was performed to come up with three referenced, strategic alternatives. This alternatives are meant to act as a strategic guidance to the company in order to enhance growth. The strategic recommendation provided will improve and enable the business to cope with the competitors while the implementation of the strategy section will outline the way to go about achieving these alternatives in the business setting. Lastly, we put up a discussion on the evaluation procedures and necessary controls for the
JetBlue Airways, an American low-cost airline, headquartered in Forest Hills, New York started flying out of John F. Kennedy Airport in February of 2000.JetBlue started by following Southwest’s approach of offering low-cost travel, setting themselves apart from their competitor’s through the amenities they offer like in-flight entertainment, flat-screen TV’s on each seat, live digital satellite radio for all passengers, one-way tickets and no weekend stay over requirements to receive their cheaper fares.
DuBois, S. (2012, February 17). The real threat facing the airlines - Fortune Management. Fortune Management Career Blog RSS. Retrieved April 29, 2014, from http://management.fortune.cnn.com/2012/02/17/the-real-threat-facing-the-airlines/
Bombardier – Bombardier is one of the biggest manufacturers of transport in the world. They have got factories throughout the world such as Canada, Northern Ireland and America. Bombardier have been through a long journey s a company to the place they are today. It all started in Canada when a young Joseph – Armond Bombardier manufactured a snowmobile to help people travel in the snow. When he passed away in the 60’s the company was taken over and focused on transport such as planes and in 1986 they took over Canadair and made it profitable once again. They then went on to take over the Shorts Brothers dying manufacturing company in Belfast, Northern Ireland. They also took over other companies that were struggling and turned them around.
Standard and Poor. (2006) Research update: Deutsche Lufthansa outlook to stable on improved trading prospects. Retrieved 25 November 2006 from www.lufthansa-financials.de/servlet/PB/show/1019578/RatingStandardandPoors102006.pdf.
Jet Airways was found in 1st April 1992 by Mr. Naresh Goyal and they started their operation after one year may 5th 1993, Jet began international operations from Chennai to Colombo in March 2004. The company was listed on the Bombay Stock Exchange
With regard to product, JetBlue is cornering the marketplace with its productivity, in-flight features, and customer service. Due to the fact that the company only purchases new planes of a single type, maintenance downtime is reduced and it is able to keep its planes in the air. In fact, JetBlue maintains the highest in-air average in the industry. Additionally, JetBlue employs an "operational recovery tool" technology that allows planners to minimize flight cancellations and delays. On board, JetBlue prides itself on treating all customers as equals and providing more comfort than other airlines.
The first initiative that they were able to gain in competitive advantage was the reduction of costs. They have been able to use an online system where consumers can reserve tickets avoiding which avoids using travel agents. Having this systems reduces costs for the company as well because they do not have to hire nearly as many as employees. Along with buying tickets, JetBlue has been able to use other systems to reduce costs which helps them with the maintenance of their planes and organizing information that involves every aspect of their business ranging from their planes to their employees and consumers. The second initiative that JetBlue uses is the creating of new services. By creating their new online services and systems they are able to gain competitive advantage because it allows easier and less expensive accessibility to their services. Not only have they created new services but they are able to differentiate these services from their competitors because of the easiness and quality of the services that they do provide. They not only focus on making their services the best but also the highest level of customer service that they can offer which other airlines struggle to do. Other competitors have realized that JetBlue is beating them in many aspects in the business that they have needed to adjust what they are doing to catch up. Even with the jumps in technology use with the other companies, JetBlue has still been able to enhance their services to continue to gain competitive
The target market of JetBlue airlines is customers who along with low cost seek services. The services provided by JetBlue included in-flight entertainment, TV on every seat, satellite radio, extra leg room, free unlimited snacks, and leather seats. The target market of JetBlue is also the leisure traveler, the low cost ticket seeking traveler, and the cost conscious business traveler. JetBlue has actually, posed a threat to the other low cost airlines like the Southwest Airlines.