Sunteți pe pagina 1din 23

JetBlue

Airlines
[Success
Story]Efforts by:-
Meenakshi Bisht
October 1, 2009
Tushank
Agenda
1. JetBlue Story
2. JetBlue Innovative Strategies
3. JetBlue SWOT Analysis
4. JetBlue PEST Analysis
5. JetBlue Market Positioning
6. JetBlue Porter’s five forces
7. JetBlue Mission Statement
8. Recommendations
JetBlue story
• JetBlue is the brainchild of David Neeleman
• Concentrating on New york, Florida and
California
• Started with an initial capital of $160 million
• Operations began on February 11,2000
• The inaugural flight was between New York’s
JFK International airport and Fort Lauderdale
• April 11, 2002 announcement of initial public
offering
• Serving 46 destinations with over 400 flights
Innovative strategies
used
by JetBlue
• Not to serve meals
• Providing personal television
• Leather seats instead of cloths
• Did not use old & cheap planes
• Use more fuel-efficient and less
maintenance cost
Airbus
• Did not fly too many routes
• Choose point-to-point flight
Continue……
• Use secondary airport which did not handle too
much
traffic
• Reduce the Turnaround time
• Use electronic ticketing
• Paperless cockpit
• Customer-oriented approach
• Picking the right people
• Create fun
SWOT Analysis
• Strength
 Low Operating cost
 Strong brand
 Efficient employee
 Single fleet
 Consumer satisfaction
 Effective use of technology
 Advertisement
• Weakness
 Relative new company
 Single fleet
 Concentration on middle class
 Shifting customer’s need
• Opportunity
 Industry
 Route & fleet expansion
 Creation of Airlines Alliances
 Technological Improvements in Airplane
design, operation and maintenance
 Deregulation of international air travel
• Threat
 September 11th attack/Accidents
 Security
 Increase in fuel price
 Strong Competition
 Global crisis
 New regulations by FAA
 union
Market Positioning

Price
High

United Airlines

American Airlines

Low Quality
Delta

JetBlue
Southwest
AirTran
Frontier

Low

Position Map
PEST ANALYSIS
• Political issue
 September11, terrorists attack
 Political stability
 Competitive Airline industry
 Regulatory factors
PEST ANALYSIS

• Economic issue
 Improved purchasing power
 Rise in Inflation
 Rise in oil prices
PEST ANALYSIS
• Social issue
 Greater customer awareness
 Increased entertainment level
 Security level of customers
 Bad services & lost baggage
PEST ANALYSIS
• Technological issue
 Beginning of e-ticketing
 Automated systems (cockpits)
 Advertisements (newly introduced
animated)
Porter’s five force
analysis
• Bargaining Power of Buyer – High
• Threat from Substitute – High
• Bargaining Power of Suppliers – High
• Threat of New Entrance – Low
• Competitive Rivalry – High
• Bargaining power of Buyer - High
 Standard product and services
 Several options available to customers
with what airline they choose to fly.
 No switching cost – customer need a
reason to stay
 Customer can research easily using the
internet
 Customer incentives such as True blue
which allow customers to earn rewards,
book flight in an easier/faster manner,
and stay on top of the upcoming
event/sales
• Threat from substitute – High
Threat is high : numerous other airlines
Switching costs among other airlines are
low
Switching costs among other
transportation option are high for
everything but short distance (Train, boat,
car etc)
High existing barriers – bankruptcy laws
allow loss maker to continue operating
• Bargaining power of suppliers –
High
Only two suppliers – Airbus & Boeing
Little/No chance to bargain with
suppliers
Fuel suppliers have a considerable
amount of power because they control
how much money is spent on the fuel
used to fly the planes.
 The volume of fuel supplied to the
airlines is extremely important
because JetBlue has prescheduled
•Threat of new entrance - Low
Deregulation made it possible for new
entrance
Very high cost or capital required for entry
Low profit margin
Difficult to differentiate product & services
Brand image and loyalty is important
New airlines must be seen as safe and
reliable
Hundreds of gone defunct trying to
compete against the large airlines
•Competitive rivalry – High
Numerous competitors like Delta,
United and American
In times of low or moderate industry
growth, the competition gets fiercer
as each one tries to nab customers
from the other in order to keep their
capacity utilizations at acceptable
levels
The industry is extremely sensitive
to economic cycles
Mission

• Bring Humanity Back to Air Travel

•Jet blue airways exists to provide superior


services at low cost in every aspects of our
customer’s air travel experience

• Core Values
Safety
Caring
Integrity
Fun
Passion
Recommendations

•JetBlue needs to pursue a Cost Leadership


Strategy
•Improve Fuel Hedge opportunities
•Initiate international Alliance
•Introduce point to point service in west coast
markets
Thank You

S-ar putea să vă placă și