JetBlue Airlines Case Analysis
JetBlue Case Analysis
Discuss the trends in the U.S. airline industry and how these trends might impact a company's strategy.
The time period the case study covers and the ensuing years have proven to be among the most turbulent ever for the airline industry on a global scale. Beginning with the reduced availability of capital and the lack of liquidity for expansion and the slowing rate of economic growth for business and leisure travel the latest global recession has been particularly difficult for the airline industry and its participants to navigate. The following are the key financial factors that the case study indicates as being the most responsible for the turbulence in this industry over the long-term. Continually escalating fuel and operating costs which fluctuate significantly over time force fuel hedging or the practice of purchasing large quantities of fuel on speculation of price increases or decreases (Forbes, Lederman, 2009). Second, the pervasive use of the hub-and-spoke model, a key factor in JetBlue choosing to expand into JFK International Airport in New York, is a risky move for the company as they are relatively unknown in this area of the country (Aydin, Morefield, 2010). A third strategic factor is that for any airline to survive they must have excellent cost controls, management and variance analysis in place to accurately predict and react to pricing variation. This is an area where JetBlue continued to struggle as well during the case study period. Fourth, the need for continually innovating and improving process performance at the business unit, operations unit ad field level of any airline is crucial to its success (Kumar, Johnson, Lai, 2009). In the context of the case study, JetBlue did aggressively pursue this area with a very high level of investment in IT, CRM, pricing and analytics...
Airline Industry Analysis This report aims to present a summary of findings for a research study regarding the airline industry. The objective of this project was to first, gain new experience in the analysis process of an entire industry from an economic and business perspective as well as an environmental and social viewpoint. Secondly, the research attempts to provide direction for potential employment opportunities within the various aspects of the direct
On the price dimension of the marketing mix, the company continues to compete with low-end and state-funded carriers, who arguably have a competitive advantage due to their funding source. Nonetheless, 1 Time is fighting the good fight of customer service and delivering value at their price points (Mantshantsha, 2007). Of all aspects of the company's marketing mix, this one is struggling the most as it strives to capture more of the
Classic Airlines Case In the early 20th century two young men by the names of Orville and Wilbur Wright made what some argue as the greatest transportation invention ever discovered outside of the automobile. This 50 pound glider with a wingspan of approximately 17 feet would revolutionize the manner in which humans across the world would travel. In fact, this 12 second flight was so instrumental, that the Wright brothers will
External Analysis of Southwest Airlines External Analysis Southwest Airlines Will Southwest Airline's strategic plan continue to bring success in the new airline industry landscape? This paper sought to answer this question by examining the external increasingly consolidated environment in which Southwest competes. The review was conducted through application of Porter's Five Forces, a PEAT analysis, and a SWOT analysis. The report concludes that Southwest has gained ground and maintained stability, changing only as
JetBlue Mission and Vision A company's mission statement should reflect its "unique purpose and reason for being" (Zain Books, 2014) Now, realistically, companies exist to earn their shareholders a return, and the mission of the company is therefore to increase shareholder wealth (Friedman, 1970). But this is not something that can be sold to the other stakeholders of a business, especially not the employees. They need to feel that they are contributing
Based on internal and external assessment, this paper provides strategic recommendations for Spirit Airlines, Inc. Flying to more than 50 destinations in the Americas and with more than 100 aircrafts in its fleet, Spirit Airlines is one of the largest ultra-low cost airlines in the U.S. The paper is organized as follows. First, the two major issues or challenges facing the company are identified. Next, strategic options for addressing the
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now