Jet Blue Airway: Case Analysis (Strategic Audit)Anna Osmanay
The presentation analyses a case of Jet Blue Airway. Jet Blue Airway is an airline company that operates in the United States. Background information about the company as well as a strategic audit of the company is presented. The strategic audit has to do with the internal and external analysis of the environment of the company.
Jet Blue Airway: Case Analysis (Strategic Audit)Anna Osmanay
The presentation analyses a case of Jet Blue Airway. Jet Blue Airway is an airline company that operates in the United States. Background information about the company as well as a strategic audit of the company is presented. The strategic audit has to do with the internal and external analysis of the environment of the company.
I recently graduated from Penn State University with a degree in Advertising and a minor in Business. I worked with four students during the Fall semester of my senior year in completing an Advertising campaign for JetBlue Airlines.
A mock media plan by Manda Goldberg, Conor Paratore, Spencer Pereira, and Daniel Snyder created for a Media Planning course at Ithaca College in December 2014.
In what way can we see that JetBlue made an entrance in an industry from the old mass production paradigm and still were able to take advantage of the ideas of the new ICT paradigm? How JetBlue make flying easier for a whole new customer segment (the low-cost segment) through focus on efficiency and new technology.
I recently graduated from Penn State University with a degree in Advertising and a minor in Business. I worked with four students during the Fall semester of my senior year in completing an Advertising campaign for JetBlue Airlines.
A mock media plan by Manda Goldberg, Conor Paratore, Spencer Pereira, and Daniel Snyder created for a Media Planning course at Ithaca College in December 2014.
In what way can we see that JetBlue made an entrance in an industry from the old mass production paradigm and still were able to take advantage of the ideas of the new ICT paradigm? How JetBlue make flying easier for a whole new customer segment (the low-cost segment) through focus on efficiency and new technology.
Download the presentation slides Eric Paquette delivered at the annual SABR Analytics Conference describing the marketing and branding strategy work Copernicus did with the Cleveland Indians.
Even if the economic outlook for Latin America shows a relatively positive picture for the coming years it is important to know that the General Regional Economic Forecast was trimmed from 4.2% to a 3.9%, by the FMI.
Read Case 10 Southwest Airlines. Answer questions 1-4 in a three.docxcatheryncouper
Read Case 10: Southwest Airlines. Answer questions 1-4 in a three to five page APA style paper, and supported with the concepts outlined in your text and from your previous classes.
1. Describe the current state of the airline industry and analyze what an airline can do to be successful in the current industry climate.
2. Perform a SWOT analysis for Southwest Airlines.
3. Assess the competitive position of Southwest Airlines by completing a competitor profile for Southwest airlines and at least two of its major competitors.
4. What alternatives does Southwest Airlines face to address the problem of declining financial performance?
Southwest Airlines 2008
1 In 2008, Southwest Airlines (Southwest), the once scrappy underdog in the U.S. airline industry, carried more domestic passengers than any other U.S. airline. The company, unlike all of its major competitors, had been consistently profitable for decades and had weathered recessions, energy crises, and the September 11 terrorist attacks. In the first quarter of 2008, the company was profitable and experienced record first quarter revenue and a record pas- senger load factor (percentage of available seats sold). However, the earnings release made it clear that the “threat of volatile and unprecedented jet fuel prices” was a major issue that threatened future growth. Operating expenses were rising, and Southwest announced that it would cut 2009 growth in available seats to less than 3%. Over the previous decade, growth had been about 5–10% a year. This cut in planned growth was consistent with previous responses to difficult environments. An insight into Southwest’s operating philosophy can be found in the company’s 2001 Annual Report:
Southwest was well poised, financially, to withstand the potentially devastating hammer blow of September 11. Why? Because for several decades our leadership philosophy has been: We manage in good times so that our Company and our People can be job secure and prosper through bad times. . . . Once again, after September 11, our philosophy of managing in good times so as to do well in bad times proved a marvelous prophylactic for our Employees and our Shareholders.
THE U.S. AIRLINE INDUSTRY
The U.S. commercial airline industry was permanently altered in October 1978 when Presi- dent Carter signed the Airline Deregulation Act. Before deregulation, the Civil Aeronautics Board regulated airline route entry and exit, passenger fares, mergers and acquisitions, aattract and retain the world’s top talent have combined to create a combination of path-dependent resources that are very difficult for even the wealthiest software and Internet companies worldwide to easily emulate, acquire, or accelerate. It will take years for any competitor to develop the expertise, infrastructure, reputation, and capabilities to compete effectively with Google. Coca-Cola’s brand name, Gerber Baby Food’s reputation for quality, and Steinway’s exper- tise in piano manufacture would ta ...
Revenue management first appeared in the airline industry in the early 1980s. It arose from the need for accurate demand estimates and profit-generating resource allocations in a newly deregulated environment. We begin this program and this module with a look back at the main causes and consequences of airline deregulation in North America. We describe how the deregulated North American airline industry has encouraged a trend toward deregulation, or at least liberalization, worldwide. We then move on to introduce the basic concept involved in airline revenue management.
62 International Business StrategyREGIONAL CARRIERS. Regio.docxalinainglis
62 International Business Strategy
REGIONAL CARRIERS. Regionalairlines (or "region-
als") operated short- and medium-haul scheduled
airline service connecting smaller communities with
larger cities and with the hubs of the major airlines.
Although most were independently owned, several of
the largest regional carriers were actually subsidiaries
of the major airlines, including Atlantic Southwest,
Comair (Delta), and AMR Eagle (American Airlines).
Many regionals benefited from arrangements with
the majors, including code-sharing arrangements,
scheduling assistance to ensure flight connections in
majors' hubs, and the branding of a major airline.
With low-cost structure and improved service levels,
regionals as a whole became the most profitable seg-
ment in the air carrier business. Regionals continued to
replace turboprops on low-density routes and developed
new routes that extended airline networks, enabling
those carriers to serve unserved or underserved mar-
kets more cost-efficiently. Regionals were able to do
that because newer,smallerjets were significantlyfaster
than existing fleets of turboprop planes, had greater range,
and burned less fuel (a major per-flight fixed cost). The
regionalswere the fastest-growingsegment of commer-
cial aviation and continued to serve a valuable segment
of travelers unaddressedby low-cost and major carriers,
Fabiano lopes, Alexandre Zimath, Andrea Maat,
and Cel. Nivaldo Silva
W
HILE TRAVELING TO an investor
conference in Montreal, Canada,
on Embraer's Legacy business jet,
Mauricio Botelho, CEO of Embraer,
reflected on his company's dramatic
ascent to its position as the world's leading regional
aircraft manufacturer. Since becoming a private com-
pany, Embraer had successfully introduced seven
commercial aircraft models to the market, including its
latest, the llB-seat EMBRAER 195. As the jet began its
runway approach just a few miles from the headquar-
ters of rival company Bombardier, Botelho pondered
the potential competitive response to his company's
recent attacks on the commercial aircraft market.
The U.S, Airline Industry
With the passing of the Airline Deregulation Act of 1978
by the U.S, Congress, government control of routes
and fare pricing were eliminated, resulting in growth,
increased competition, and the emergence of three new
business models: major, regional, and low-costcarriers.
lOW-COST CARRIERS. Low-cost carriers (LCCs)
offered airfares at a lower price than major and
regional carriers. The largest LCCs included JetElue,
AirTran, Southwest Airlines, and America West, as
well as new upstarts Song and Ted, which were owned
by Delta and United, respectively.
Many of the LLCs started off as regionals, offering
short-haul serviceconnecting business and leisure trav-
elers between high-volume destinations. By operating
MAJOR CARRIERS. The distinguishing feature in the
business model of amajor carrier (ora "major") was the
hub-and-spoke system.This systemwasbasedoncentral
hubs to w.
International Business Strategy --------------...62(~,.docxmariuse18nolet
International Business Strategy --------------..."62
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CAS E 25 I Embraer: Shaking Up the Aircraft Manufacturing Market ';:~:'"
Fabiano Lopes. Alexandre Zimath, Andrea Maat,
and Cel. Nivaldo Silva
W
HILE TRAVELING TO an investor
conference in Montreal, Canada,
on Embraer's Legacy business jet,
Mauricio Botelho, CEO of Embraer,
reflected on his company's dramatic
ascent to its position as the world's leading regional
aircraft manufacturer. Since becoming a private com-
pany, Embraer had successfully introduced seven
commercial aircraft models to the market, including its
latest, the 118-seat EMBRAER 195. As the jet began its
runway approach just a few miles from the headquar-
ters of rival company Bombardier, Botelho pondered
the potential competitive response to his company's
recent attacks on the commercial aircraft market.
The U,S, Airline Industry
With the passing of the Airline Deregulation Act of 1978
by the U.S. Congress, government control of routes
and fare pricing were eliminated, resulting in growth,
increased competition, and the emergence of three new
business models: major, regional, and low-cost carriers.
MAJOR CARRIERS. The distinguishing feature in the
business model of a major carrier (or a "major") was the
hub-and-spoke system. This system was based all centra!
hubs to which feeder flights were directed. Passengers
from the feeder nights transferred to numerous other
flights provided at the hub to their final destinations.'
The enormous capital required to expand geo-
graphically was a substantial barrier to entry for new
airlines. As low-cost and regional carriers primarily
competed on price and local market convenience, the
rationale for the majors' costly model lay largely on
the improved customer loyalty generated by the eon-
venience and reach of these airlines.
To further enhance breadth of service and increase
the number of CUStomers while limiting capital out-
lays, most majors turned to code-sharing and global
alliances with other major and regional airlines. The
major global allinnees included Star Alliance, Sky
Team, and One World.
DARDEN.
~rN~ PUBLISHING
1JNJw.'W"W'/I1lCINIA
REGIONAL CARRIERS. Regional airlines (or "region-
als") operated short- and medium-haul ~eheduled
airline service connecting smaller cornmumues wah
larger eities and with the hubs of the major airlines.
Although most were independently owned, several of
the largest regional carriers were actually subsidiaries
of the major airlines, including Atlantie Southwest,
Comair (Delta), and AMR Eagle (American Airlines).
Many regionals benefited from arrangements with
the majors, ineiuding code-sharing arrangements,
scheduling assistance to ensure flight connections in
majors' hubs, and the branding of a major airline.
With low-cost structure and improved service levels,
regionals as a whole beeame the most profitable seg-
ment in the air carrier business. Regionals continued to
replaee turboprops on low-density routes and develop.
From FAA Forecast Conference, March 2007. Reviews the future of long-haul LCC (Low-cost carrier) business models in aviation. Presents economic analysis of all-economy cabin services and differentiated premium business models.
ys jagan mohan reddy political career, Biography.pdfVoterMood
Yeduguri Sandinti Jagan Mohan Reddy, often referred to as Y.S. Jagan Mohan Reddy, is an Indian politician who currently serves as the Chief Minister of the state of Andhra Pradesh. He was born on December 21, 1972, in Pulivendula, Andhra Pradesh, to Yeduguri Sandinti Rajasekhara Reddy (popularly known as YSR), a former Chief Minister of Andhra Pradesh, and Y.S. Vijayamma.
Future Of Fintech In India | Evolution Of Fintech In IndiaTheUnitedIndian
Navigating the Future of Fintech in India: Insights into how AI, blockchain, and digital payments are driving unprecedented growth in India's fintech industry, redefining financial services and accessibility.
‘वोटर्स विल मस्ट प्रीवेल’ (मतदाताओं को जीतना होगा) अभियान द्वारा जारी हेल्पलाइन नंबर, 4 जून को सुबह 7 बजे से दोपहर 12 बजे तक मतगणना प्रक्रिया में कहीं भी किसी भी तरह के उल्लंघन की रिपोर्ट करने के लिए खुला रहेगा।
31052024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
CLICK:- https://firstindia.co.in/
#First_India_NewsPaper
03062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
CLICK:- https://firstindia.co.in/
#First_India_NewsPaper
हम आग्रह करते हैं कि जो भी सत्ता में आए, वह संविधान का पालन करे, उसकी रक्षा करे और उसे बनाए रखे।" प्रस्ताव में कुल तीन प्रमुख हस्तक्षेप और उनके तंत्र भी प्रस्तुत किए गए। पहला हस्तक्षेप स्वतंत्र मीडिया को प्रोत्साहित करके, वास्तविकता पर आधारित काउंटर नैरेटिव का निर्माण करके और सत्तारूढ़ सरकार द्वारा नियोजित मनोवैज्ञानिक हेरफेर की रणनीति का मुकाबला करके लोगों द्वारा निर्धारित कथा को बनाए रखना और उस पर कार्यकरना था।
27052024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
CLICK:- https://firstindia.co.in/
#First_India_NewsPaper
role of women and girls in various terror groupssadiakorobi2
Women have three distinct types of involvement: direct involvement in terrorist acts; enabling of others to commit such acts; and facilitating the disengagement of others from violent or extremist groups.
01062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
CLICK:- https://firstindia.co.in/
#First_India_NewsPaper
In a May 9, 2024 paper, Juri Opitz from the University of Zurich, along with Shira Wein and Nathan Schneider form Georgetown University, discussed the importance of linguistic expertise in natural language processing (NLP) in an era dominated by large language models (LLMs).
The authors explained that while machine translation (MT) previously relied heavily on linguists, the landscape has shifted. “Linguistics is no longer front and center in the way we build NLP systems,” they said. With the emergence of LLMs, which can generate fluent text without the need for specialized modules to handle grammar or semantic coherence, the need for linguistic expertise in NLP is being questioned.
Welcome to the new Mizzima Weekly !
Mizzima Media Group is pleased to announce the relaunch of Mizzima Weekly. Mizzima is dedicated to helping our readers and viewers keep up to date on the latest developments in Myanmar and related to Myanmar by offering analysis and insight into the subjects that matter. Our websites and our social media channels provide readers and viewers with up-to-the-minute and up-to-date news, which we don’t necessarily need to replicate in our Mizzima Weekly magazine. But where we see a gap is in providing more analysis, insight and in-depth coverage of Myanmar, that is of particular interest to a range of readers.
2. jetBlue
Above all else, JetBlue
Airways is dedicated to
bringing humanity back
to air travel. We strive
to make every part of
your experience as
simple and as pleasant
as possible.
3. jetBLUE History I
Feb-1999: Founder David Neeleman announces plan for his new airline.
Jul-1999: JetBlue announces that all seats will have live satellite TV.
11-Feb-2000: First inaugural flight from JFK to Ft. Lauderdale, FL.
21-Dec-2000: Flies its one millionth customer & reports $100 million in flown
revenue for 2000.
09-Nov-2001: Installation of bullet-proof, dead-bolted cockpit doors across
its fleet
11-Apr-2002: Announcement of initial public offering of its common stock.
4. jetBLUE History II
13-Jun-2002: Launch of the TrueBlue customer appreciation program.
13-Nov-2003: JetBlue adds two inches more legroom for most customers on
all aircraft
16-Mar-2004: JetBlue launches online flight check-in
4-Mar-2005: JetBlue receives FAA's highly coveted Diamond Certificate of
Excellence Award
6-Jun-2005: JetBlue opens state-of-the-art training and support campus at
Orlando International Airport
24-Jan-2006: JetBlue begins offering Dunkin' Donuts coffee onboard all flights
5. jetBLUE History III
23-March-2007: JetBlue celebrates the arrival of its 100th Airbus A320 aircraft
11-December-2007: Complimentary in-flight e-mail and instant messaging
services are introduced on aircraft BetaBlue, a first among U.S. domestic
airlines
28-January-2008: Refundable fares are introduced
8-April-2008: Goodbye flying…hello jetting!
20-May-2008: Jetting to Green introduces carbon offsetting and an alternative
fuel partnership
8-September-2008: Flights and vacation packages are successfully auctioned
on eBay – an airline first
7. Political
1993 : As a response to the current recession of 1991, President
Clinton appointed the National Commission to Ensure a Strong
Competitive Airline Industry
(Because in 1978 : Deregulation of the airline industry)
1994: NAFTA is implemented to increase trade to Mexico and
Canada
1999 : President Clinton’s Impeachment Trial
2000 : George W. Bush is elected to the President of the United
States
2001 : September 11 terrorist attacks
Hundreds of new flying rules and regulations are enacted.
8. Economic
DJIA
1991: The Persian Gulf War and rising inflation combined to cause a
recession. (Led to National Commission-described on next slide)
Economy began to boom due to low levels of inflation
1999: Led to record low levels of unemployment - 4.2%
Increase in minimum wage from $3.80 in 1990 to $5.15 an hour in 1997
Use of the internet helped lead to all-time high for stock market
2001: Tech bubble burst and Sept. 11 terror attacks lead to 2001 recession.
9. Social
1998: Television graced 98% of the households in
the US
The average home had 2.4 television sets
The average viewer watched 7 hours a day
74% of US households had cable
1999: 83 1/2% of population had completed 4
years of high school (compared to only 41% in
1960)
http://kclibrary.lonestar.edu/decade90.html
U.S. Census Bureau, Statistical Abstract of the United States: 2000, page 5
10. Technological
1992: Invention of the World Wide Web
Adoption of standardized software - Windows
Huge increase in available memory for computer
systems
Rapid proliferation of internet to homes, schools,
offices, etc.
1994 : Beginning of e-ticketing
Summer 1999: Over half the airlines tickets
purchased are e-tickets
11. PEST ANALYSIS - OPPORTUNITIES AND THREATS
Potential Impact Opportunity or Strategic
Nature of Change
of Change Threat Response
People are afraid to
Major political fly and are Threat that people
changes with 9/11 spending/saving will top flying Focus on safety
Political
and the presidential differently with a because of fear and and low prices.
election. new economic economic reasons.
policy.
People have larger
Advertise low
discretionary Opportunity to gain
Economic Economic boom. prices and extra
incomes and are customers.
amenities.
looking to travel
Consumer needs
TV has become an and preferences are Opportunity to add Offer TV
Social everyday part of changing and to jetBLUE’s programming on
people’s lives. becoming more offerings onboard. board.
technology friendly.
The internet is Online jetBLUE
Data is being Opportunity to
becoming an reward system and
Technological transfered and introduce services
everyday online e-ticketing/
stored online. using the web.
occurrence. check in
13. Airline Industry
NAICS Code: 481111
Scheduled Passenger Air Transportation
This U.S. industry comprises establishments
primarily engaged in providing air transportation of
passengers or passengers and freight over regular
routes and on regular schedules. Establishments
in this industry operate flights even if partially
loaded. Scheduled air passenger carriers including
commuter and helicopter carriers (except scenic
and sightseeing) are included in this industry.
14. HHI for the Airline Industry
Total Revenue ($ Billions) % Market Share
American Airlines 23.8 19.14
Delta Airlines 22.7 18.26
United Airlines 20.2 16.25
Continental 15.2 12.22
US Airways 12.1 9.73
Southwest 11 8.85
Lan Airlines 4.5 3.62
TAM S.A. (Brazilian Airlines) 4.2 3.79
Alaska Air Group 3.7 2.98
Skywest 3.5 2.82
JetBlue 3.4 2.74
• THE HHI OF A MARKET IS CALCULATED BY SUMMING THE SQUARES OF THE PERCENTAGE
MARKET SHARES HELD BY THE RESPECTIVE FIRMS.
• HHI = 1335.62
• WHICH REGARDS THE AIRLINE INDUSTRY AS A MODERATELY CONCENTRATED INDUSTRY
15. Life Cycle Chart
AIRLINE INDUSTRY
THE AIRLINE INDUSTRY IS IN A LATE MATURITY/EARLY DECLINE STAGE, DUE TO:
•DECLINING PROFITS
•STANDARDIZED FEATURES
•SMALL SCALE PLAYERS AREN’T SURVIVING (ALOHA, SKYBUS AIRLINES, SOUTHEAST AIRLINES,
ETC.)
•CUSTOMER LOYALTY IS KEY (FREQUENT FLYER PROGRAMS, CREDIT CARDS WITH MILEAGE
REWARDS)
16. Industry Supply Chain
Raw Materials
Airplane Manufacturer
PLANES
Maintenance & Storage
Airline
TICKETS Travel Agent
Consumer
HTTP://WWW.ATWONLINE.COM/CHANNELS/AIRLINEPROCUREMENT/ARTICLE.HTML?ARTICLEID=2067
17. Value Chain
Inbound Logistics
Strong internet presence (jetblue.com, TrueBlue, Facebook,
Twitter)
Web-based ticketing
Operations
Crew-scheduling software
Automated baggage handling
No meals : efficient turnaround time and reduced costs
Outbound Logistics
Airports are chosen carefully
Less congested airports
18. Value Chain
Marketing & Sales
Call Center employees all work out of their homes in and
around Salt Lake City, Utah
No office rentals, cubicle space, etc.
Specific market segment is identified and targeted
Effective and attractive pricing
Service
Emphasis on customer service - Customer Bill of Rights
Focus on “We encourage you to use the Call Button”
Constant interaction and communication from CEO
21. ACTIVITY SYSTEM
Eschews hub airports
in favor of point-to-point
Able to make a profit in
flights Frequent Flyer
Alliance with Air the sharp decline of air
Program “TrueBlue”
Lingus, Cape Air and travel after 9/11
Lufthansa
Customers Bill of
Rights
Focus on Focus on
Low Prices Customer Service -
Removal of 6 seats
Customers are
Even More
encouraged to use
Legroom Seats
No union policy keeps the “call button”
unions from forming
Call center
operators work out of
their homes “Bring Humanity Back to
Keep employees happy
Travel” - “Jetting Happy”
Partnership with RIM to
Employees are
allow wireless access on
encouraged to submit
flights
names for the new planes Personal
- winners win trips Advertisements with
“Dear New York” &
“Sincerely JetBlue”
Cutting Edge Eco-friendly pillow
and blankets
Keeping up with Free snacks
Purchase of
current culture: Official and Dunkin Donuts
Live TV
airlines in The Simpsons’ coffee
Free satellite
Movie, Manny Ramirez television and radio
special, AmEx credit Leather Seats
DirecTV on all seats
card programming
HTTP://KNOWLEDGE.WHARTON.UPENN.EDU/ARTICLE.CFM?ARTICLEID=1342
23. Sources of Value (Competitive Advantage)
Positioning (jetBlue looks quot;to bring humanity back to air
travel.quot;)
Brand: Jetting Happy (and the color Blue)
Not “flying”, but “Jetting” - a new experience
Green and socially conscious
Geography: Looking for markets with fewer
competitors - not at all the large airports
Point-to-point operations, not a hub airport
Purchased smaller jets to facilitate smaller airports
Covers domestic flights and is moving international
HTTP://EN.WIKIPEDIA.ORG/WIKI/JETBLUE_AIRWAYS
24. Sources of Value (Competitive Advantage)
Capabilities
Products/services:
Extra amenities
Sleep kit, leather seats, TV’s at each seat, additional
leg room
Low cost airfare
Technology: High on technology
TrueBlue rewards service is all online
Facebook and Twitter accounts
DirectTV and Satellite television/radio on all seats on all
flights
HTTP://EN.WIKIPEDIA.ORG/WIKI/JETBLUE_AIRWAYS
25. Sources of Value (Competitive Advantage)
Capabilities
Processes: majority of ticketing and paperwork is done online
- streamlines the process
Business Model:
Low Price flights
No airport hub - avoiding areas with lots of competition
Point to point destinations
Keep the employees happy - no-layoff policy
No unions have been formed - during one attempt, only
35% of machinists wanted to join a union
Profit sharing
Highly regarded training process
HTTP://WWW.SFGATE.COM/CGI-BIN/ARTICLE.CGI?FILE=/CHRONICLE/ARCHIVE/2004/09/12/BUGVS8LL121.DTL
HTTP://EN.WIKIPEDIA.ORG/WIKI/JETBLUE_AIRWAYS
HTTP://KNOWLEDGE.WHARTON.UPENN.EDU/ARTICLE.CFM?ARTICLEID=1342
26. Adding Value while Differentiating
and Reducing Costs
Removed 6 seats from the A320 fleet
Net savings of $30 million over five years
Additionally plan to reduce the inflight crew to 3
Reduces the weight of the aircraft by 904
pounds
Marketed to customers “more inches of legroom
than any other U.S. airlines' coach cabin”
HTTP://WWW.GLOBENEWSWIRE.COM/NEWSROOM/NEWS.HTML?D=110427
28. Bargaining Power of Customers
To reduce the bargaining power of consumers:
Customer incentives such as TrueBlue, which allows
customers to earn rewards, book flights in an easier/faster
manner, and stay on top of upcoming events/sales.
Partnered with AmEx for a jetBlue a credit card
Reward miles are used only on jetBlue
Customer Loyalty: Flying round trip across the US two times
will earn you a free reward
Points are earned relatively quickly
Customers can research easily using the internet
No switching costs - customers need a reason to stay
HTTP://WWW.ASSOCIATEDCONTENT.COM/ARTICLE/547961/JET_BLUE_THE_BEST_FLIERS_REWARDS_PROGRAM.HTML
29. Threat from Substitutes
Threat is high : numerous other airlines
Switching costs among airlines are low
Switching costs among other transportation options are high
for everything but short distances
Trains, boat and car travel are time intensive
Additional partnership with Aer Lingus, Lufthansa, and Cape
Air to keep customers flying within the partnership
High exit barriers - bankruptcy laws allow loss makers to
continue operating
30. Bargaining Power of
Suppliers
Very little threat from suppliers
Only two suppliers: Boeing and Airbus
Little/no chance of cooperation between
suppliers
31. Threat of New Entrants
Deregulation made it possible for new entrants
Very high cost of entry
Hundreds have gone defunct trying to compete against
the larger airlines
Competition among airlines at airports : must get a certain
amount of “slots” at an airport
Brand image and loyalty is important
New airline must be seen as safe and reliable
32. Competitive Rivalry
Keeping Employees:
No-layoff policy with their employees
Led to pilots deciding not to form a union in 2008
Very friendly and nurturing training process
Keeping Consumers:
Product is differentiated through free food, tv, extra leg
room, rewards system, etc.
Focus on different customer segments: those looking
for more than just a low price
HTTP://WWW.SFGATE.COM/CGI-BIN/ARTICLE.CGI?FILE=/CHRONICLE/ARCHIVE/2004/09/12/BUGVS8LL121.DTL
HTTP://WWW.THESTREET.COM/STORY/10463924/1/JETBLUE-MATURING-AS-AIRLINE.HTML