Jetblue Essay

C. Task Environment
The US Airline industry is one of the most dynamic and varied in the world. It is noted to be very rapidly growing and exceptionally competitive too. The following is based on Porter’s Five Force Model:
• Threat of New Entrants – entry of new players is consider low, as the entry obstructions are high and needs high capitals to enter the business. (O)
• Bargaining powers of buyers – Bargaining powers of buyers is considered to be greater, as most passengers would consider price over experience, thus might lead to shift to other carriers. (T)
• Threats to substitute products or services – Threats of alternative products or services is considered greater, other means of transportation may turn out to being less expensive.

JetBlue is concentrating more on developing an ordeal for its passengers; thusly its operating cost is rising; though, in the same market competitors concentrate more on bringing down their fare charges to draw in more customers.

External Factor Analysis Summary table (EFAS):
External Factors Weight Rating Weighted scored Comments
1 2 3 4 5
Opportunities
Concentrating on latest markets/routes 0.15 4.0 0.60 Greater demand in the Latin America & Caribbean islands association with other carriers 0.05 3.5 0.17 Interline agreements newer fleet of aircrafts 0.10 4.5 0.45 Low maintenance cost and Fuel Efficient
Technology: electronic-ticketing and automated check in, utilization of laptops, iPads other than paper logs, in flight wifi called Fly-Fi 0.10 4.0 0.40 with technology superior experience
C Services such as Vacation Packages, Customer loyalty program - 'TrueBlue', introduction of Premium Mint Class 0.10 4.0 0.40 with added services / product superior experience
Threat of new players 0.05 2.0 0.10 Very less because of huge operating cost Threats
Very fast growth of other low cost carrier competitors and greater Rivalry in competition 0.1 3.5 0.35 United States being the leading carrier