Swot analysis
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Swot analysis Swot analysis Document Transcript

  • SWOT analysis<br />Strengths<br />A major strength of any airline is the product itself--air travel. Despite downturns, over time air travel continues to grow, not only due to population growth, but also due to an increased propensity to fly.<br />Another strength is the safety record, and the associated public acceptance of air travel as both a fast and safe way to travel. Both traditional, brand recognized airlines and new low cost carriers share this strength.<br />Airline staff is highly trained and experienced, from pilots and flight attendants to mechanics and ground staff. Businesswise, airlines have the ability to segment the market, even on the same routes. This allows airlines to establish different levels of service and make associated pricing decisions.<br />Weaknesses<br />Airlines have a high "spoilage" rate compared to most other industries. Once a flight leaves the gate, an empty seat is lost and non-revenue producing.<br />Aircraft is expensive and requires huge capital outlays. The return on investment can be different than planned.<br />Large workforces spread over large geographic areas, including international points, require continual communication and monitoring. This can be exacerbated during operational irregularities, such as bad weather.<br />While the business climate can change quickly, airlines have difficulty making quick schedule and aircraft changes due to leases, staffing commitments and other factors.<br />Opportunities<br />Airline market growth offers continual expansion opportunities for both leisure and business destinations. This is particularly true for international destinations.<br />Technology advances can result in cost savings, from more fuel efficient aircraft to more automated processes on the ground. Technology can also result in increased revenue due to customer-friendly service enhancements like in-flight Internet access and other value added products for which a customer will pay extra.<br />Link-ups with other carriers can greatly increase passenger volumes. By coordinating schedules, airlines can offer service to destinations via a code share agreement with a partner carrier.<br />Threats<br />A global economic downturn negatively affects leisure, optional travel, as well as business travel.<br />The price of fuel is now the greatest cost for many airlines. An upward spike can destabilize the business model.<br />A plague or terrorist attack anywhere in the world can negatively affect air travel.<br />Government intervention can result in new costly rules or unexpected new international competition.<br />Considerations<br />When reviewing industry SWOT analyses, take note that each airline will approach the analysis differently. For instance, an airline that "hedged" fuel purchases will find a fuel price increase much less of a threat than an airline that must purchase fuel on the open market.<br />Strengths <br /> <br />JetBlue Airways has differentiated itself by providing various facilities to the customers such as in-flight entertainment, Satellite radio and TV on every seat etc. <br />As of December 31, 2009 JetBlue provides 60 destination in 21 states and 11 countries in the Latin America and Caribbean.  <br />JetBlue was one of only few U.S. airlines that ended a profit during the prickly decline in airline travel subsequent the 9/11 attacks. <br />JetBlue has turn into one of the most admired airline stocks in history and now has about two billion dollars in market capitalization.<br />The robust marketing campaign, developed in association with JWT New York, give emphasis to service, complimentary, and aggressive fares onboard services.<br />JetBlue was listed the number one U.S. home airline by famous magazine’s "Readers’ Choice Awards" for the sixth year in a row.<br />It was also ranked top in Customer Satisfaction amongst Low Cost Carriers in North America.<br /> <br /> <br />Weaknesses<br /> <br />Operational issues, low fares, high fuel prices, JetBlue’s trademark, contributed in bringing economic performance of JetBlue down. <br />JetBlue’s higher costs linked to the airline’s several facilities were making the company less competitive.<br />Although JetBlue continued to add routes and planes to the convoy at a fast pace but it witnessed unsustainable growth rate. <br />JetBlue estimated a loss for 2006, due to lofty fuel prices, fleet costs, and operating inefficiency.<br />JetBlue’s website and airport cabin are not easy to get.<br />The company has less international destinations because it only covers 11 countries. The company does not have presence in Asia and other unsaturated areas. <br /> <br /> <br />Opportunities<br /> <br />After the economic crises in 2009, revival has pursued rapidly as the industry consistently revisited to its long-term increase rate of approximately 5 percent per year.<br />Quickly increasing air service within China and other rising economies along with the increase of low-cost carrier (LCC) business models all over the world drive this market segment.<br />Introduction of new planes has created the opportunity for additional route. <br />Increase international tourism and investment is consequently vital to the globalization taking place in numerous other industries.<br />United States of America is the largest single market in the world.<br />Traveler traffic is predictable to rise by six percent for this year, with related annual growth rates for 2011 throughout 2014.<br />Technology has increased the ways of advertisement. Similarly, it has facilitated the ways of  ticking such as internet etc. Therefore, improvement in technology is a good opportunity. <br />Tourism is increasing all over the world and it has also increased longer duration of flights.<br />The increased capabilities of the most recent long-range, twin-aisle airplanes generate opportunities for players to take advantage of the continuing liberalization of air convey markets to unlock new nonstop routes. <br /> <br /> <br />Threats <br /> <br />Demand for air travel fluctuates generally for the services to be provided.<br />Fuel prices are increasing as economic conditions gets better.<br />Customers have complaints about refunds. It means that people are not getting their money in time.<br />The majority of the major airlines have undergone cost reformation.<br />Strong competitors, in terms of limitation capacity, pricing, consolidation scheduling, and alliance activities.<br />Increasing impact of the governmental regulations to the industry operations.<br />Due to the terrorism number of customers is decreasing to fly for South Asia, Iraq, Iran, Africa etc.   <br />