...Strategy Final: Is JetBlue's strategy conducive to sustaining profitability? Team: Grant Carter William DiSciullo Andrea Kalmans Professor McAfee April 9, 2002 1 Introduction In the April 1st, 2002 edition of Barron’s, a tag line in the “Marketweek” column reads, “Airlines and other money-losing companies.” 1 This tag line reflects the intense rivalry and the massive financial losses undergone in the airline industry in the past few months due to the economic recession and the 9/11 terrorists attacks. Amidst this airline industry malaise, however, JetBlue Airlines (”JetBlue”) launched service in February 2000 and generated over $41 million in profits in 2001.2 In this report, we explore the question, “Is JetBlue’s strategy conducive to sustaining profitability?” The answer is a resounding “Yes”. At the one thousand foot level, we believe that even in the unattractive airline industry in which companies try to differentiate on qualities other than price -- but in the end often compete on price -- JetBlue has a unique formula for success. It competes head-to-head with the majors, particularly Southwest Airlines (“Southwest”), on price, cost structure, features, and customer satisfaction. However, the company has carved a niche in which a “live and let live” strategy should prevail. Indeed, a rival attempting to bankrupt JetBlue may well cause more harm to itself than to its target. Airline Industry Overview Background At one time the airline industry resembled the utility...
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...China’s transportation system is rapidly expanding to support economic growth, meet projected global intermodal freight demands, and promote expansion into underdeveloped regions of the country. Given the current understanding of intermodal freight movement that was not available when the United States developed its port capacity, the purpose of this scan was to identify how China provides intermodal access to its new, greenfield maritime ports and the possible application of those methods in the United States. The scan also looked at the investment strategies adopted by Chinese officials to foster freight mobility and intermodal connectivity in support of their global competitiveness. The scan team represented a diverse set of interests and concerns for national and State decisionmaking. In addition to Federal Highway Administration (FHWA) officials at the national and division levels, the team included representatives from the departments of transportation for California, Maine, and Pennsylvania; a representative of the I-95 Corridor Coalition; a representative of the American Association of State Highway and Transportation Officials (AASHTO); a representative of the American Trucking Associations; and a university professor who also acted as the report writer. These scan members reflected different modal interests and expertise in intermodal freight transportation, trucking, transportation policy and planning, and transportation system operations. The scan team met with government...
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...an ERP system can do” (O'Leary, 2004). Once the company has established ERP benefit benchmarks, it will have a point of reference by which to evaluate other ERP implementations. Once it is understood what ERP benefits are likely to be experienced, then those potential benefits can be used as the basis to set up measurements for those benefits. Then those measurements can be used to establish whether a company has attained the levels of productivity expected from the ERP implementation (O'Leary, 2004). Industry specific benefits must also be taken into account. In total, these are the reference points by which potential stockholders will evaluate an entity’s viability as an investment risk. This paper will evaluate UTi Worldwide Inc. as a case study for ERP implementation; the potential benefits and costs that result from the transition and realignment, and the affect on investor interests. Industry Concerns To be competitive within the global supply chain services and solutions...
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...Abstract AAS-Design AAS-Design is a North American fashion label specializing in luxury goods for men and women (ready-to-wear, leather accessories, shoes, luggage and hats), founded in 1990 by Abel, Angus and Satish in Virginia Beach, Virginia. Fulana inherited the company in 1995 by which time sales were up to U.S. $450,000. With John alongside her as business manager, Fulana was allowed time to implement her creativity onto design. Initial success was not instant, as they were hard to sell due to the lack of advertising and high-prices, but later become her first commercial hit. Description of technology and Communications Need: IT Department The IT Department is in the third floor of corporate building. From this place the IT department offer supports to the entire corporate building and the rest of the store in U.S. The implementation of news technology indicates the degree of business transformation varies significantly between firms. Improving processes usually involves implementing systems and process management across business function boundaries rather than within functions. IT infrastructure investments can be a constraint where systems are not compatible, or where inconsistent data models have been used in different parts of the business. (Broadbent, M., Weill, P., Clair, Don St, 1999) As companies grow, their IT Infrastructure evolves, requiring additional capacity and process efficiencies. The IT infrastructure required to support a company's operations...
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...Air Service first passenger flight………………………………………………………..….5 The Air Mail Act of 1934……………………………………………………………..…………..5 The Civil Aeronautics Board (CAB) determine routes………………………………..………….5 The Airline Deregulation Act of 1978……………………………………………………..……..6 Song Airlines…………………………………………………………………………………..….8 Song Airlines Aircraft fleet………………………………………………………………………..9 Song Airlines Marketing Strategy…………………………………………………………...…..10 Delta Airlines Bankrupt……………………………………………………………………..…...13 Delta Airlines Disband Song Airlines…………………………………………………………....13 Delta Airlines merges Song Airlines fleet with Delta……………………………………..….....14 Conclusion of Song Airlines…………………………………………………………………..…15 Figure 1-A Delta SWOT Analysis…………………………………………………………....…16 Figure 2-A Song SWOT Analysis…………………………………………………………….....17 References……………………………………………………………………………….………18 Abstract In the competitive business environment it is imperative for any organization to ensure that its knowledge of the industry in which it competes is at a premium. In order to maximize market knowledge, organizations will often need a complete market research to make certain that any changes to the markets or aviation laws in which they compete. This portion of the industry is characterized by high price competition that results from the large number of Aviation Company’s in the market and low switching costs of...
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...Strategic Report for JetBlue Airways Harkness Consulting Innovation through Collaboration Rosanna Smart Alisher Saydalikhodjayev Sayre Craig April 14, 2007 Table of Contents Executive Summary ………………………………………………..3 Company History ………………………………….………………..4 Competitive Analysis ………………………………………………7 Internal Rivalry …………………………………………………………. 8 Entry ………………………………………………………………………… 9 Substitutes and Complements …………………………………….. 11 Supplier Power ………………………………………………………….. 12 Buyer Power …………………………………………………............... 13 Financial Analysis ………………………………………………….14 SWOT Analysis ………………………………………………………23 Strategic Issues and Recommendations …………………..25 References ……………………………………………………………30 Harkness Consulting 2 Executive Summary From its initial flight in February 2000, JetBlue emerged into the heavily competitive airline industry as the little airline that could. While legacy carriers declared bankruptcy, JetBlue trounced its competition by offering low‐cost, customer‐focused service. Under the direction of the energetic David Neeleman, JetBlue became a major player in the airline industry. Operating domestic flights on a point‐to‐point system, JetBlue primarily manages East‐West and Northeast‐Southeast routes. While this route structure initially proved profitable for the company, rising costs and heated price competition are currently threatening JetBlue’s market share. The com...
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...1998 by David Needleman and many of the first executives, including Needleman were former Southwest Airlines employees. First flight was from Buffalo, NY to Fort Lauderdale, FL in February 2000. One operating base: JFK International Airport Five focus cities: Orlando International, Luis Muñoz Marín International Airport (San Juan) International, Logan International (Boston), Long Beach and Fort Lauderdale – Hollywood International Airports. 84 destinations, 198 aircraft Company slogan: You Above All 15,000+ employees JetBlue’s Nasdaq price from 2002 to present (JBLU) Brief History of the Domestic and Global Airline Industry The two of the oldest airlines in the world which are still operating are Qantas (Queensland And Northern Territory Aerial Services) in Australia and KLM (Koninklijke Luchtvaart Maatschappij) Airlines, in the Netherlands, both of which started flying in 1920. Following World War I and many trained veteran pilots, with airmail service offered by the United States Postal Service through contract air carriers some of which evolved into PanAm, TransWorld, American, and Delta Airlines. Following World War II, the commercial airline industry continued to expand under government regulation. Until congress deregulated the airline industry in the United States in 1978 and airlines were able to set the prices for their own fares and choose their own destinations. The first Asian airline...
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...Evaluation of Tourism Strategy Objectives Assessment of the Tourism Board Role of Branding The world is witnessing all the countries trying to be the same infra structurally and through the quality of life. However the objectives for a country to promote trade, tourism and investment are best achieved through difference between all the countries. Countries should shoot questions to themselves asking why other countries would come for investing and for tourism rather than going to other countries. This self analysis will lead to making a country more attractive and recognized worldwide for tourism in the case of this assignment. Asking questions like is the transport system working fine. How effective are the roads leading to tourist destinations. How are the tourist destinations maintained. All these self analyzing questions act as the starting point in branding the nation among the tourism friendly countries in the world. This process of branding will showcase the strength and weaknesses of a country in terms of tourism. However the nation’s brand is not going to be fixed and it is going to evolve in time. Thus even if there are lot of issues to be solved in a country there is no reason to delay branding and it’s the best way possible to position the country in the world. A nation branding is not about coming up with logos, tags and advertisements. It takes much more than that to achieve attracting the customers through recognition and by maintaining...
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...Development Project II for the Aqaba Devolpment Corporation. This publication was produced by the USAID/Jordan Tourism Development Project II, under the direction of Ibrahim Osta, Chief of Party. TABLE OF CONTENTS I. II. EXECUTIVE SUMMARY 6 THE ENVIRONMENT IN WHICH KHIA WILL MARKET 1. APPROACH AND RELEVANCE AT KING HUSSEIN INTERNATIONAL AIRPORT 2. SCHEDULED AIRLINES AIR SERVICE PLANNING PROCESS 3. CHARTER SERVICE AND TOUR PROGRAM PLANNING PROCESS 4. AIRLINES’ ECONOMIC DECISION-MAKING CRITERIA 5. PROACTIVE AIRPORT LEVERAGE – Prodding the carriers 6. PRESENTING A COMPELLING DESTINATION MARKETING PROPOSAL 6 13 13 15 17 19 20 21 III. AQABA THE DESTINATION – Issues for Consideration 1. AQABA HOTEL AVAILABILITY 2. AQABA HOTEL ARRIVALS KING HUSSEIN INT’L AIRPORT MARKETING PLAN 1. INTRODUCTION 2. STRUCTURE OF THE KHIA MARKETING STRATEGY 3. KHIA AT A GLANCE 4. CURRENT BUSINESS 5. COMPETITIVE DESTINATIONS / AIRPORTS 6. POPULAR EUROPEAN CARRIERS AIRCRAFT 7. KHIA MARKETING OBJECTIVES 8. KHIA MARKETING RESEARCH FOR DECISION SUPPORT 9. MARKETING CAMPAIGN DESIGN & EXECUTION 10. MAINTAIN TRADE RELATIONS 11. SALES MISSIONS IN SUPPORT OF NEW BUSINESS 12. PR / ADVERTISING & PROMOTION 13. BRANDING 14.ESTABLISH STAKEHOLDER PARTNERSHIP PLAN 15. ACCOUNT MANAGEMENT APPROACH 16.INTERIM MARKETING ACTION KHIA MARKETING DEPARTMENT STRUCTURE 1. STAFFING REQUIREMENT 2. ORGANIZATIONAL STRUCTURE TARGET AIRLINES AND TOUR OPERATORS 1. ROYAL JORDANIAN 2. LCC AIRLINES OPERATING IN / SERVING THE REGION AND...
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...types of competitors exist, legacy carriers and low-cost carriers (LCCs). The legacy airlines had long ago created the “hub-and-spoke” system, shuttling thousands of passengers to large airports (hubs) and using connecting flights (spokes) to get them to their final destinations. LCCs like JetBlue transported passengers directly from point A to point B usually managing costs by specializing in a specific type of plane. JetBlue ended up entering another part of the market by using a smaller plane to handle short- to medium-distance trips. Recently entering a crisis recovery stage for a few months after two instances of poor planning had become evident, JetBlue was faced with two main problems: 1) How would JetBlue manage their rate of growth to meet softening demand for their service as well as higher input costs? 2) How will JetBlue’s differentiation strategy be changed to fit their competitive advantage? JetBlue’s current differentiation strategy is its ability to offer multiple distances of flights, all at a low cost to passengers, while providing a comfortable customer experience throughout. Because they have two planes that each essentially offers a different service, the choice of what planes to use determines what their future differentiation strategy will be. They are ultimately faced with the challenge to determine how many of each of their planes will be the correct ratio to purchase in the coming years. Financial Analysis The ROS, is a measure of explaining...
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...SEA Economy Case Study – Class B Group Members: Domenic Kortmann, Jenny Hert, Mariella Azizian, Nils Knickenberg, Gloria Neuwinger Topic: Tourism Industry in Thailand Introduction Thailand is a wondrous kingdom, featuring Buddhist temples, exotic wildlife, and spectacular islands. Along with a fascinating history and a unique culture that includes delectable Thai food and massage, Thailand features a modern capital city, and friendly people who optimize Thailand’s “land of smiles” reputation. Thailand has rich sources for travelling and therefore deeply attracts people from all over the world. Each year, around 11 million visitors go there. Actually, tourism in Thailand plays an important role in the Thai economic structure and even in the whole Thai society, and it has a profound effect on Thai economy. This study concerns the background information of tourism in Thailand and will analysis certain problems that come along with it. Tourism is becoming the pillar industry in Thailand. In the last 20 years, tourism in Thailand developed rapidly. According to a survey done by ESCAP,” domestic tourism was able to contribute 29695 million baht to GDP, which was 3.7 per cent of total GDP (Gross Domestic Product) in 1983.” According to another statistic, in 2009, tourism was contributing 14.7 % to Thai GDP. According to the government’s data, in 2010, Thailand attracted 15.8 million tourists, and it generated about 19 billion dollars of revenue. Sisdivachr Chevaratanaporn,...
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...Efficiency Analysis of Container Ports and Terminals Qianwen Liu A thesis submitted for the degree of Doctor of Philosophy of University College London Centre for Transport Studies Department of Civil, Environmental and Geomatic Engineering University College London 2010 1 Declaration I, Qianwen Liu, confirm that the work presented in this thesis is my own. Where information has been derived from other sources, I confirm that this has been indicated in the thesis. Candidate’s signature ………………………………….. Qianwen Liu 2 Abstract In the past two decades the steady growth of seaborne trade has resulted in the increase of container ships, container ports and their terminals. The structure of the shipping market is, moreover, continuously evolving. On the carrier side, shipping companies form consortia and alliances; on the port side, global terminal operators and dedicated container terminals are emerging. The aim of this research is to evaluate the efficiency of container ports and terminals and to study how to improve the scale efficiency of any particular port/terminal. In particular we study how certain factors influence the efficiency of container ports and terminals. Regional container ports and global container terminals are examined based on the econometrics benchmarking method Stochastic Frontier Analysis (SFA). Two datasets are used, a panel dataset for 32 container ports in the North Mediterranean Sea over a nine-year period, and a cross-sectional...
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...Table of Contents Abstract …………………………………………………………………………………………………………………………….…. 2 Brief company background ………………………………………………………………………………………………….. 2 Discussion of business problem ……………………………………………………………………………………………. 3 The cost of brick and mortar ………………………………………………………………………………………………… 4 High level solution ………………………………………………………………………………………………….……………. 7 Benefits of solving the problem ……………………………………………………………………………….…………… 8 Business/technical approach ………………………………………………………………………………………….…….. 8 Business process changes …………………………………………………………………………………………………….. 11 Technology or business practices used to augment the solution ………………………………………….. 11 Conclusions and overall recommendations ………………………………………………………….….…………… 12 Summary of project ……………………………………………………………………………………………….….…………. 15 References …………………………………………………………………………………………………………….….…………. 16 Abstract This paper analyzes the advantages of Troy’s Sporting Goods implementing a technology based growth strategy through the utilization of an e-commerce website versus continuing solely through a brick and mortar approach. Currently, Troy’s competes against other well-known sporting goods companies for market share who already have a strong e-commerce presence. An evaluation of cost, resource utilization, customer base, and customer experience are compared, while also considering the primary necessities for the successful implementation of a business to customer (B2C) website, including: (1) Hosting and...
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...Secretary of Defense Corporate Fellows Program FINAL REPORT UNITED TECHNOLOGIES CORPORATION Lt Col Clyde M. Woltman, USMC June 2002 TABLE OF CONTENTS Table of Contents I Introduction ii Chapter 1…United Technologies Corporation The Sectors…Corporation Overview 1 Corporate Strategy, Culture, Environment 2 “Most Admired”…A UTC Legacy 2 Chapter 2…Pratt & Whitney Organization 3 Strategic Planning Process 3 Road Maps 4 Transformation 5 “The Great Engine War” 6 Leaness 7 ACE 8 Competition…Lessons Learned? 10 Chapter 3…Maintaining the Edge Leadership Challenge…Transforming Culture 14 Growth…The Key to the Future 14 “Re-inventing the Business” 15 Enterprise Resource Planning Initiative 16 Strategic Approach to Managing Human Resources 19 Employee Services 20 Chapter 4…For DoD Lean Thinking in DoD 22 Achieving Competitive Excellence in DoD 22 Outsourcing…”Keeping Our Core Competencies in House 23 Employee Education 23 Life After the Military Service…Improving the Odds 25 Adages of Human Resources 25 Bibliography 26 INTRODUCTION Assignment Overview I was assigned as a Secretary of Defense Corporate Fellow to Pratt & Whitney Corporation, one of the six principal Sectors of United Technologies Corporation (UTC). My initial assignment with Pratt was to the F135 Joint Strike Fighter (JSF) Engine Program at the Military...
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...VMOST Vision Mission Southwest Airlines' mission statement reads: "The mission of Southwest Airlines is dedicated to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit." All these traits are what have made Southwest # 1 in fewest customer complaints for several years running. Southwest continues to thrive on its reputation from this # 1 ranking as well as reap monetary rewards that come with this distinction. Southwest’s commitment to their employees reads: “We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer” Objectives Strategy The strategy that Southwest Airlines should use in order to continue its success is also based on the “Short-Haul” strategy. The difference is that the strategy must be inter-converted. Southwest can try its best to duplicate its “Short-Haul” strategy globally. For instance, it can do exactly the same business with the same strategy once again. But this time, Southwest has to do it in every part of the world. For instance, Southwest can expand its business in France, Germany, Australia, Russia, China, Japan, Poland, Greece,...
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