Jet Blue Airways Corporation


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Jet Blue Airways Corporation

  1. 1. JetBlue Airlines<br />Gurpreet Singh<br />Kulwant Singh<br />Puneet<br />Ryan Pepper<br />Savneet<br />
  2. 2. Contents<br />Airline Industry <br />Porter’s Five Forces Analysis<br />Origin of JetBlue Airlines<br />Mission Statement of JetBlue<br />Product Life cycle <br />Market Positioning of JetBlue<br />Innovative Strategies Used by JetBlue<br />SWOT Analysis of JetBlue<br />Recommendations <br />
  3. 3. Airline Industry<br />Deregulation of the U.S. Airline industry in 1978<br />Dominated by the largest Airlines(American, Continental, Delta, United)<br />There are currently 18 passenger Airlines<br />Since 2001, most of the Airlines have experienced considerable financial restructurings in bankruptcies, mergers and consolidations<br />
  4. 4. Porter’s Five Forces Analysis<br />Bargaining Power of Buyer High<br />Threat from Substitute – High <br />Bargaining Power of Suppliers – High<br />Threat of New Entrance – Low<br />Competitive Rivalry – High<br />
  5. 5. Bargaining Power of the Buyers<br /> High because of :<br />Standard product and services<br />Customers have several options to choose Airline<br />No switching cost – customer need a reason to stay<br />Customer can compare easily other alternatives using the internet<br />Customer loyalty : flying round trip across the US two times will earn you a free reward<br />
  6. 6. Bargaining Power of the Suppliers<br />High because of :<br />Airplane Suppliers: <br />Only two <br /> (Airbus & Boeing)- No bargaining Power<br />Fuel Suppliers: <br />JetBlue has prescheduled flights and require certain amount of fuel. Fuel is one of the most important cost factor.<br />
  7. 7. Threat from Substitute<br /> High because of :<br />Numerous other Airlines<br />Switching costs among other airlines are low<br />High existing barriers – bankruptcy laws allow loss maker to continue operating<br />Other means of Transportations (Amtrak, Grayhound)<br />
  8. 8. Threat of New Entrance<br />Low because of :<br />Very high cost or capital required for entry <br />Low profit margin<br />Difficult to differentiate product & services<br />Brand image and loyalty is important<br />New airlines must be seen as safe and reliable<br />Dominated by Large Airlines<br />
  9. 9. Competitive rivalry <br />High because of :<br />Numerous competitors like Delta, United and American <br />In times of low growth of industry, fierce price competition <br />The industry is extremely sensitive to<br /> economic cycles<br />
  10. 10. JetBlue Airline <br />Official name : JetBlue Airways Corporation<br />Headquarters : Forest Hills (New York), USA<br />
  11. 11. Origin of JetBlue Airlines<br />The founder: David Neeleman<br />Focus area: New York, Florida and California<br />Initial capital : $160 million<br />Operations beginning: on February 11,2000<br />First flight : between JFK International Airport, NY and Fort Lauderdale, FL<br />Initial public offering announcement :April 11, 2002 <br />Currently :Serving 46 destinations <br /> with over 400 flights daily<br />
  12. 12. Mission <br />Bring Humanity Back to Air Travel<br />Exists to provide Superior services at low<br /> Cost<br /> Core Values:<br />Safety <br />Caring<br />Integrity<br />Fun<br />Passion<br />
  13. 13. Product Lifecycle<br />Jet Blue is a very young company<br />It has moved from the introductory stage<br />Continue to add New flights destinations, Aircrafts, Market Share, and Employment<br />
  14. 14. Market Positioning<br />Price<br /> High<br />United Airlines<br />American Airlines<br />Quality<br />Low<br />Delta<br />JetBlue<br />Southwest<br />Air Tran <br />Frontier<br />Low<br />
  15. 15. Market Share<br />Source: The Bureau of Transportation Statistics<br />
  16. 16. Innovative strategies used by JetBlue<br />No Meal Service <br />Each Seat has 6.8 inch TV (36 DIRECTV Channels)<br />Leather Seats <br />Two Types of Airplane (A320 and the Embraer190) <br />Use of Fuel Efficient Airplanes<br />Focus on Core Routes<br />Point to Point Flights<br />Electronic Ticketing <br />
  17. 17. Innovative strategies used by JetBlue<br />Use of Secondary Airports like Long Beach<br />Use Paperless cockpit (flight deck)<br />Customer-focused Approach<br />Free snacks (Dunkin Donuts, Terra Blue Chips)<br />Create fun ( discounted weekend fun fare)<br />
  18. 18. SWOT Analysis of JetBlue<br />Strategic Strengths <br />Largest Airline at JFK Airport in New York City<br />Leather Seats throughout all Jet Blue Aircraft<br />Low Operating Cost<br />Strong Brand <br />Efficient Employee <br />Consumer Satisfaction<br />Effective Use of Technology<br />Advertisement<br /><br />
  19. 19. SWOT Analysis of JetBlue<br /> Weakness<br />Relative New Company<br />Single Fleet (No Boeing in Fleet)<br />Concentration on Middle Class<br />Shifting Customer’s Need<br />
  20. 20. SWOT Analysis of JetBlue<br /> Opportunities<br />Route & fleet Expansion<br />Creation of Airlines Alliances<br />Technological Improvements in Airplane Design, Operation and Maintenance<br />Deregulation of International Air Travel<br />
  21. 21. SWOT Analysis of JetBlue<br /> Threats<br />September 11 Attack/Accidents<br />Security Issues<br />Increase in Fuel Price <br />Strong Competition<br />Global Economic Crisis <br />
  22. 22. Recommendations<br /> These are some recommendations for JetBlue:<br />It should pursue a Cost Leadership Strategy<br />It should Focus on Airlines Alliances<br />Improve Fuel Hedge Opportunities<br />
  23. 23. References<br /><br /><br />,8599,167074,00.html<br /><br /><br /><br /><br /><br /><br />
  24. 24. Any Question….????<br />
  25. 25. Thanks<br />