...Consumer Behavior Consumer Behavior: Contrast Jet Blue vs. Southwest Airlines Trident University MKT501 CS1 Identify key external factors that affect the passenger airline industry and explain how that impact occurs There are several external factors that affect the passenger airline industry. Some of the factors that affect the industry are economic crisis, instability in aviation fuel price, and environmental factors. I will elaborate more in detail in the following paragraphs on these factors. The first area I want to talk about is our countries current Economic Crisis, and in my opinion drives all the other factors that affect airline industry’s the most. The current economic situation is not good and therefore will have an effect on what a customer will or will not do. Air travel is very expensive as it is, in my opinion, so a sluggish economy will add more pressure on an individual or family thinking of flying anywhere. The second area that affects the airline industry is the cost of aviation fuel. If fuel prices are high, the airline will have to charge more for tickets. As I mentioned earlier, higher ticket prices is not what the public wants in our current economy. The airline industry is a business and in order to make money and continue to provide the service, the company has a breakeven price, approximately 66% of their operating cost (Airline Economics Break Even Load Factors Paragraph). If the company doesn’t...
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...Jet Blue Airways: Analysis of a Company The airline industry serves not only as a means of transportation to millions of people on a daily basis, but also a huge customer service industry. Customers analyze every aspect of air travel from the food services offered and convenience of completing business transactions, to the airline’s safety results and ratio of on-time departures. Many customers become brand loyal, where others will do business simply based on price. It is also vital to note that, like any company, brand perception plays a large role in the success or failure of a company within the airline industry. Because of the number of individuals impacted when a flight goes awry, it only takes one incident to completely destroy an airline company’s credibility for safety, which can also lead to reduced sales and ultimately profit. Airlines must also now adapt to the world of technology as many consumers are looking for airlines that provide high tech amenities, such as paperless boarding passes and the ability to use cell phones while in flight. To keep their customer’s content, airlines must use their Research and Development teams to meet these expectations or they will lose those customers to competition. At the creation of Jet Blue, its Chief Executive Officer, David Neelman, wanted to “combine the low fares of a discount airline carrier with the comforts of a small cozy den in people’s homes” (Thompson, Strickland, Gamble, 2009). He wanted leather seats...
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...Professor Samir Moussalli MGMT499 November 18, 2010 Analysis Conducted by PSPS Associates Outline I. Management Summary II. Introduction a. Purpose b. goals III. Background IV. Strategy Formulation a. Vision b. External Opportunities & Threats c. Internal Strengths & Weaknesses d. Long Term Objectives e. Alternative Strategies f. Strategy Selection V. Strategy Implementation a. Annual Objectives b. Policies c. Employee Motivation d. Resource Allocation VI. Strategy Evaluation a. Internal Review b. External Review c. Performance Measurement d. Corrective Action In this analysis of Jet Blue Airlines, we will take an in-depth look at the internal and external factors surrounding the operation and continued success of the airline. We will reveal the opportunities, both internally and externally. As well as expose threats that could potentially...
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...What are the main problems facing Jet Blue? JetBlue can face some important problems in this market. First we have the fuel. Prices are too high and have many changes but, without that, the company can’t exist. Then the competition in this business is huge and very aggressive and good strategies are fundamental to survive in this market. This company fights against high costs, like operational costs, that do not help the company to have a solid financial structure. Another difficulty is the number of empty seats in each flight. As we can read in the case-study JetBlue is a relatively small company so it does not have the powerful weapons that other big companies in the sector have. The Government with his federal taxes creates an important barrier to the success of JetBlue. Besides that and because of the company’s price/cost policy it has low operating revenues; because of fuel prices changes JetBlue is not able to maintain its growth. An additional problem related to this last one is the delay of many flights, that don’t pass on a good image of JetBlue for the outside environment. As we can see so many times in television, the hurricanes in some parts of the world are responsible for the raising of prices of fuel, situation that is disastrous for the company. Resuming, there are some significant problems to which JetBlue has to respond with innovative and continuous successful strategies if the will of the administration is to turn JetBlue in a memorable...
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...Appendix C – Sample Research Case Study Virgin Blue ‘You can’t make a business case that you should be who you are not’ Shayne Connell Student Number: 9809317 Case Study GSBS6010 – Foundations of Marketing Theory Due: 11 March 2010 th Lecturers: Penny Crittall and Joel Goodsir Page 113 Table of Contents 1. Executive Summary………………………………………………………3 2. Situation Analysis a. Identification of case issues………………………………....…. 4 b. Analysis of case issues using marketing theory…...........……5 3. Evaluation of alternative courses of action……………………………. 7 4. Recommendations………………………………………………………..7 5. References………………………………………………………………...9 Page 114 1. Executive Summary This analysis examines Virgin Blue’s strategy to increase share of the business and government travel market. This is the third change of strategic direction for the low cost carrier since 2000. The key issues are the challenge of repositioning the company while maintaining the brand strength of the airline, and continuing to meet the needs of the leisure market while offering value to business travellers. Virgin Blue has targeted the full service market leader, Qantas, by positioning itself as an airline for executives who can avail themselves of ‘Premium Economy’ services. The situation is analysed drawing on International case examples, strategic planning principles and growth strategies to evaluate alternative courses of action. Virgin Blue needs to target the business market in the unique Virgin...
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...INTRODUCTION Air blue is a private Pakistani airline based at Jinnah International Airport Karachi. It started its operations on May 24, 2004. It was the first private carrier of Pakistan to operate the Airbus A320 when it initially started. Air blue has been expanding rapidly despite experiencing competition from the other three airline operators in Pakistan. The airline mainly flies on domestic routes plus internationally to Dubai International Airport and also has plans to fly to the Gulf, UK, and USA. MISSION STATEMENT Air blue will be recognized as the most progressive enterprise in the transportation business. We will offer our customers cost effective transportation service within geographical areas and market segments that can benefit from our services and will insure a return on investment and growth rate consistent with current management guidelines. VISION STATEMENT Our vision is to make Air blue the most admired airline in the world. * Ensuring safety comes first * Providing Service Straight from the Heart * Encouraging product leadership * Delivering superior financial returns * providing rewarding career opportunities SWOT ANALYSIS of AIR BLUE: The SWOT analysis is the process of analyzing organizations and their environments based on their strengths, weaknesses, opportunities and threats. This includes the environmental analysis, the process of scanning the business environment for threats and opportunities, which is considered...
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... Assignment 1 Dr. Elile Awa CRAFTING AND EXECUTING STRATEGY Submitted by: John-Miguel Onkony Winter Quarter 2011 Strayer University Introduction This document presents an analysis of one case presented in the textbook (Thompson, A.A., Strickland, A.J., & Gamble, J.E. (2010). Crafting and executing strategy: The quest for competitive advantage: Concepts and cases: 2009 custom edition (17th ed.). New York: McGraw-Hill-Irwin.), entitled “JetBlue: A Cadre of New Managers Takes Control”. The case describes the reasons for the success of JetBlue, a three-year-old, low-cost airline, operating in the USA. Trends in the U.S. Airline Industry and their Impact on Company’s Strategy Since 2001, the US airline industry has faced an unprecedented set of challenges. Following the terrorist attacks of September 11, 2001, the airline industry reported tremendous losses and several of the largest US airlines went into bankruptcy. To recover from this situation and try to remain financially viable, many measures have been taken by airlines...
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...Introduction ________________________________________ Classic Airlines is the fifth largest airline in the world and it commands a fleet of 375 and above jets that serve approximately 240 cities on daily flights that are around 2, 300. Classic Airlines was incepted 25 years ago and since then, it has grown into a large organization of almost 32,000 employees. Despite the high rate of profitability of Classic Airlines, challenges that affect today’s Airlines are inevitable. Some of the challenges include uncertainty about flying which has greatly affected stock prices. ________________________________________ The other challenge is consumer confidence that has greatly decreased probably due to increased negativity from the public, media and even Wall Street. Classic Airlines desire is to boost employee and consumer confidence and this is through increasing employee and customer satisfaction and keeping down costs. This research paper will use Classic Airline scenario to present the current issues and opportunities, identify a marketing problem, describe the end state vision and finally identify solutions to the problem. ________________________________________ Discussion Identification of issues and Opportunities The marketing activities of Classic Airlines are influenced by several factors and some of these factors are uncontrolled. It is evident that the company is faced with rising costs of labor and fuel which has led to cutting of costs through better efficiency...
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...sustainable competitive advantage. 1.3 Analyze the influence of the organization on strategic business continuity. Readings Read Ch. 3 of Strategic Management: Competitiveness and Globalization, Concepts and Case. Participation Participate in class discussion. All Days 1 Discussion Questions Respond to three discussion questions. Days 3, 4, 5 3 Weekly Summary Write a 300-350 word summary of how this week’s material relates to you professionally and to organization. Post to Weekly Summary Thread. Day 7 1 Learning Team Instructions Create the Learning Team Charter. Select one of the following Virtual Organizations to use throughout the course for strategic plan development: • Riordan Manufacturing • Huffman Trucking • McBride Financial Services Day 7 Individual Internal Risk Assessment Resource: University Library’s Datamonitor 360 Access the University Library’s Datamonitor 360 and look up one of the following companies: • Wal-Mart Stores, Inc. • Jet Blue Airways Corporation • Hewlett-Packard Company • The Home Depot Prepare a 1,050- to 1,750-word paper identifying the key capabilities of your selected company. • Discuss the firm’s strengths and weaknesses in marketing, human resources, management, research and development,...
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...Business Proposal Professional Development II Prepared by: Casey Foo Don Lin Karen Lim Kim Hong Lawrence Lim 1 Executive Summary The airline industry is not young, and if it is not because of budget airlines who revolutionized how the industry works in terms of pricing strategies and marketing, it is honestly quite boring to fly! Since the September 11 attacks, airports around the world, including Australia has stepped up security measures extensively, which adds to the ʻhecticʼ experience of air travel. This is exactly the phenomenon what our proposal, called the WonderFlight program intends to address, by bringing our customersʼ flying experience to the next level. WonderFlight aims to bring our customersʼ flying experience to the next level by introducing themes into selected domestic B737-700 flights and each theme changes every three months. To start with, the launching theme would be Lady Gaga. For each WonderFlight, our flight attendants will dress up according to the theme and perform the usual in flight services such as serving meals & beverages. Passengers may also opt to take polaroid pictures on board with our well dressed flight attendants with a charge. On top of that, a custom flight safety demonstration will also be performed by our flight attendants according to the theme to encourage our customers of their interests in the safety features of the aircraft. Famous hits of that theme will also be played on-board to generate a fun and party going atmosphere. Passengers...
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...sustainable competitive advantage. 1.3 Analyze the influence of the organization on strategic business continuity. Readings Read Ch. 3 of Strategic Management: Competitiveness and Globalization, Concepts and Case. Participation Participate in class discussion. All Days 1 Discussion Questions Respond to three discussion questions. Days 3, 4, 5 3 Weekly Summary Write a 300-350 word summary of how this week’s material relates to you professionally and to organization. Post to Weekly Summary Thread. Day 7 1 Learning Team Instructions Create the Learning Team Charter. Select one of the following Virtual Organizations to use throughout the course for strategic plan development: • Riordan Manufacturing • Huffman Trucking • McBride Financial Services Day 7 Individual Internal Risk Assessment Resource: University Library’s Datamonitor 360 Access the University Library’s Datamonitor 360 and look up one of the following companies: • Wal-Mart Stores, Inc. • Jet Blue Airways Corporation • Hewlett-Packard Company • The Home Depot Prepare a 1,050- to 1,750-word paper identifying the key capabilities of your selected company. • Discuss the firm’s strengths and weaknesses in marketing, human resources, management, research and development,...
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...CONSUMER BEHAVIOUR Service Quality Perceptions of Domestic Airline Consumers in India: An Empirical Study SUBMIITED TO: MEENAKSHI HANDA BY: SAHIL MALHOTRA (13) RAHUL KALRA (39) Abstract Pricing and service quality are the key variables that decide the brand equity of each player in the airline industry. Existing literature suggests that measurement and management of service quality is the key for survival of airline companies. This research paper examines the service quality delivered by four major airlines in India on the backdrop of stiff competition in the airline service sector. The process of traveling on a domestic airline was divided into pre-flight, in- flight and post-flight experiences. A survey was conducted to find out the perceived service quality of frequent fliers on each of the four airlines across a series of service performance variables. The airline brands were positioned in a perceptual space, where the perceived service attributes were also mapped. Clear differences emerged among the airlines, with two of them perceived as being similar to each other, and the other two differing in many respects. INTRODUCTION India at present has twelve competing airlines in the domestic market as against a single government owned airline in 1991. According to McKinsey Quarterly (2005), the Indian aircraft market is the world’s second largest commercial aircraft market. On-time performance and service levels have risen dramatically and fares have...
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...Amanda Lawson MGT 4800 Case Study Southwest Airlines 1. Resources a. Tangible Resources: Tangible resources are the physical and financial assets that an organization must need to create value for its customers (Dess, Lumpkin, & McNamara , 2014). Examples are as follows: i. The size of Southwest’s fleet was 694 Boeing 737 by the end of 2012. ii. Southwest Airlines has 35,000 employees. (Attendants, Pilots, ground crew, etc.) iii. Contracted hubs that Southwest Airlines fly in and out of. iv. Southwest is adequately and effectively utilizing it’s resources to continue its growth. They are also using these resources, modifying them slightly (more seats per flight), advantageously to recover some of the lost growth opportunity when AirTran was acquired. b. Intangible Resources: Intangible resources are assets that gain value from intellectual or legal rights; they are difficult to identify and account for (Dess, Lumpkin, & McNamara , 2014). v. Southwest’s “people department” (in use of human resources department). vi. Brand resources, such as brand value and reputation as a fun and low-cost airline. vii. Southwest’s has very strict ideals that they utilize to hire their employee’s. They believe that anyone who is homerless, self-centered or complacent will eventually bring down the other workers and “poisoning everyone else”. This ideal is preached all the way from the CEO...
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...STRATEGIC MANAGEMENT (EBS5103) CASE STUDY INSTRUCTOR: Dr. Ahmet Beşkese BAHÇEŞEHİR UNIVERSITY May 2015 1. INTRODUCTION This report is based on strategic analysis of JetBlue from it’s the establishment date to year 2003. In order to the analysis, a precise strategy is decided upon for JetBlue Company. 2. HISTORY David Neeleman was born in Brazil, Sao Paulo in 16 October 1959. He attended the University of Utah for three years then he dropped out university and served a mission for The Church of Jesus Christ of Latter-day Saints in Rio de Janeiro, Brazil for two years. He made his beginning in establishing own business by renting out condominiums in Hawaii. Then he established his own travel agency and began chartering flights from Salt Lake City to the islands. He was co-founder with June Morris of charter airline Morris Air, a low-fare airline. From 1984 to 1988, he was an Executive Vice President of Morris Air. From 1988 to 1994, he was the President of Morris Air Corporation. In 1993, Morris Air was then acquired by Southwest Airlines for $129 million. For 5 years, he worked on the Executive Planning Committee at Southwest Airlines. By 1994, he left Southwest Airlines after signing a five year noncompeting agreement. With his experience of aviation, he established a company named Open Skies which a touch screen airline reservation and check-in systems company that acquired by Hewlett Packard in 1999. At the same time, acted as a consultant to another start-up...
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...Charging for baggage, mergers, and elimination of meals are cost-cutting initiatives which drive trends at it relates to airline passengers. The airline industry, among other commerce industries has shown pockets of recovery after some painful years. According to ATA, the industry trade organization for major U.S airlines, this year there were eight months on consecutive revenue growth. Passenger travel skyrocketing to 17 percent in comparison to last year. (Thompson, Strickland, & Gamble, 2010, p. 62). These trends severely impact a company’s strategic vision and must be considered when implementing business objectives with the end goal of strengthening the business. Moving toward success requires in-depth analysis of industry trends. Discuss Jet Blue’s strategic intent. As America’s first and only airline to develop its own Customer Bill of Rights, JetBlue...
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