West Jet Strategy 1. WestJet competes in the air travel market segment with a focus of providing low cost flights to the common traveler, such as friends and relatives. An order qualifier would be the timeliness of the flights. WestJet has achieved the best on-time arrival performance in its market segment which it is able to pass on to customer. As delays will often frustrate travellers, this can make WestJet that traveller’s top choice.
What advantages would such an approach give Boeing? a. Value Propositions Due to the mature market, operational excellences have been one of the choices for airline business to compete in the low-cost airline trend of the business. With IT system linked the significant information Boeing improve operational efficiency both itself and its customers, all of which want to pursue in aviation supply chain. b. Differentiation Boeing create total solution
The low cost airlines have developed their value chains so effective in low cost operation that they are hard to imitate, especially for traditional airlines. In these conditions, traditional airlines have had to rethink their strategies and question the old business model. Easyjet has undoubtedly proved to be one of the success stories of the low cost no frills airline market. The following report undertakes an analysis of Easyjet and identifies issues in which a strategy has been recommended for the future of the companys success. Tools and models such as the PESTEL analysis, Porters Five Force analysis, SWOT analysis, Business model, and Value chain model have been adopted to help analyse and undertstand Easyjet as a whole and develop a strategy recommendation for the business.
M1 Tess Ryan 40046771 Melissa Bridge Introduction: Virgin Atlantic is vertically integrated is organised as a business by having higy quality leadership as customers are central to their success. Within Virgin Atlantic, they have long haul pilots, product designers and catering experts, fuel analysts, contact centre agents, aircraft leasing managers - all to gaurentee make sure Virgin Atlantic is organised in a hard-working, honest and open environment. As well as being set up with excellent customer services for the business and leisure travellers, as well as setting new standards for the rest of the industry to follow. The financial strategy is to ensure they offer the best business product in the air, grow our leisure business even further, and run an efficient but effective global airline in order to make a profit. Whereas Thomas Cook is a vertically integrated as well as a horizontally integrated company as they merged with my travel and co-op travel which joined together in an attempt to save in costs and make the companies more profitable as well as having tour operators, travel agents, airlines and hotels in which makes them vertically integrated.
EasyJet- Case Study 1 Q1. Analyse the structure of the industry in which easyJet competes. How attractive was the industry in the late 1990s? The core objective of easyJet was to establish a sustainable mode of air travel at a price that would be comparatively cheaper to its rivals. By using a framework by (Porter 1980) we can illustrate the compatibility of such a strategy in the existing aviation industry Potential Entrants Despite the high volume of new entrants during the period of easyjet’s inception, only a minority were actually able to survive.
Southwest clearly defines its existing purposes, which is to provide the lowest fares for business and leisure travelers traveling between states. Instead of competing with large-scale airlines to fly international routes, Southwest focuses on “point-to-point” interstate short trips, and more on maximizing the profitability than focusing on market share. This strong vision outweighs the allurement of international flight market, keeping Southwest airline concentrated on its own niche to gain profit. B. Cost-consciousness Since low fares have become its selling point, decreasing the cost becomes very important. Southwest Airlines tries to save money by simplifying its operating process.
Advances such changing engines from piston to jet engines and new software allows aircrafts to function more efficiently with less wear and tear and for longer period of times. Additionally, Delta’s changes in depreciation from 1986 through 2006 had a positive effect on the company’s financial statements. Although depreciation does not affect cash flows or revenue, it does have an effect on the bottom line. By stretching out depreciation, Delta decreased its depreciation expense resulting in higher net income. This is very beneficial for Delta; the airline industry is always being pressure to show more profits and results.
Has Southwest done a better job than competitors of meeting the needs of these air travelers? In what ways? Some values that airline travelers seek are leisure of arriving to their new destination, flexibility, being efficient, and being comfortable all for a fair and inexpensive price. Traditionally, Southwest was inexpensive and flexible because of their low costs and the mentality of just getting travelers from point A to point B. The remodeling of the airline has created a more pleasant atmosphere for the customers.
Vision & Mission 5PROPOSED VISIONAt JetBlue our vision is to be the best regional air carrier by providing low-fare, low-cost, enjoyable and safe flight experiences to our passengers. • 6. Vision & Mission 6Proposed Mission StatementsJet Blue’s mission is to be the leading low-fare, low-cost passengerairline offering high quality customer service to underservedmarkets and customers who are looking for the best value in theirflight. We have the newest most advanced planes that are reliable,safe, fuel efficient, utilizing advanced technologies, and unique
JetBlue Airways incorporates several methods for success; high quality customer service, low-cost flights as well an excellent product which focuses on customer needs. By providing their customers a superior level of customer service that seems to be almost non-existent in this day and age, JetBlue Airways provides services to those areas that were not receiving the attention that they could use as well as tapping into those markets that were offering higher priced flights “We focus on serving markets that previously were underserved and large metropolitan areas that have had high average fares” (JetBlue, 2004). By doing this, they are able to capitalize on a market that is not being utilized by other travel businesses. There are a number of risks that JetBlue seems to have regarding this 10K/A 1. Highly competitive industry 2.