WestJet’s competitive priority relates to cost, quality and delivery. Cost – WestJet has been able to reduce its operating costs through standardization. By purchasing only one type of plane WestJet is able lower both maintenance and training costs, resulting in higher profits. These savings and profits allows WestJet to provide lower cost airfares to its customers, thereby having a competitive advantage over its competitors. Quality – WestJet’s culture emphasizes a fun and friendly atmosphere for all travellers and empowers employees with bottom-up management.
They also included a share of the costs associated with running the hubs at two airports, such as ticket agents, building charges, baggage handlers, gate charges, etc. Suppose that the revenue collected on the typical United flight from San Francisco to Washington does not cover these costs. Does this fact imply that United should discontinue these flights? Explain. Based on the book when there are competitive markets such as airlines, a company certainly needs to look at costs and revenue very closely.
Exploitable- JetBlue could design the interior of the aircraft to improve passenger comfort and use E190 as an useful tool to expand market and attract new customers. Implication: The E190 provided a unique opportunity for the growth of JetBlue. However, this plane did not completely match the company’s current capabilities and costed a lot. Thus the CEO of Jetblue must change their strategic strategy to either keep E190 as a VRINE resource or sell it. Capability 1: High level of service (Bill of Rights) Valuable-
4. Hibachi Table Arrangement: It not only keeps labor cost low at a level of 10-12% but also minimizes flow time resulted to higher turnover rate 5. Waste Management and Storage: The restaurants cut food costs down substantially by wisely providing the most three wanted American entrees and thereby reducing on storage costs and this also helps in avoiding waste. Initial Strategy of excellent financial performance 1. Operates more efficient compared to the other typical US restaurants: Operation Cost | US Restaurant | Benihana | Efficient performance | Labor Cost | 30-35% | 10-12% | Low labor cost was driven by eliminating the need for a conventional kitchen | Food Cost | 38-48% | 30-35% | Simple menu resulted no waste.
This will help to recapture profit margins lost to inefficiency and make them better competitors in their chosen market, (Russell & Taylor, 2011). b) Economies of Scale in material purchasing: Albatross
The consumer buys the portion of ownership over the jet and can then decrease travel time while increasing comfort and broader airport access. Founders of Netjets Inc. implemented blue ocean strategy in this case, finding an "untapped" market void of competition- partial private jet ownership. Consumers find this service more expensive than flying commercially,
There are several options available for customers to choose in this industry because the standard product and service are in this industry, so customers are more care about the price. And also the Internet makes customers research cheaper flight much easier than before and switching cost is low. The threat from substitute is high. Numerous options for customers can instead airlines, such as trains, buses, boats, and personal vehicles. Customers usually desire a cheaper way to travel if there are many options for them.
If the CEO and Chief Financial Officer (CFO) would use the holistic marketing approach the airline would benefit with the change. Both the CEO and CFO are ignoring good marketing and customer relations. By ignoring both of these principals Classic Airlines revenue is suffering. With holistic marketing everything matters. If the CEO and CFO adopt this principal Classic Airlines will thrive in the future (Kotler & Keller,
(Argenti, 2009, p.100)It is obvious that David Neeleman and JetBlue set out to exceed customer satisfaction and ingeneral, tend to go above and beyond what the average airline has to offer. However, it seemsthat their goal of excellent customer service was higher in importance than teaching theiremployees how to communicate in emergency situations, such as the one presented to us in thecase study. It is essential for companies to find a competitive advantage to set themselves apartfrom other companies in their industry, however it is also crucial for these companies to find abalance and continue to value the basic fundamentals of communication.Data AnalysisJETBLUE AIRWAYS CASE STUDY ANALYSIS 3 • 2. JetBlue went from startup company to powerhouse of the sky in 2007 with overall growthin terms of destination and size. Run by CEO David Neeleman’s expertise and experience in theindustry, the
It is consistently ranked as one of the top Fortune 500 brands. Southwest is renowned in the airline industry for its short turnaround time on arrivals and departures, and on-time flights. Many people recognize the reputation Southwest Airlines has in the airline industry and it appeals to many customers and potential fliers. The reputation and recognition of Southwest Airlines is enough to support the ad. The advertisement goes after the common sense of the reader because it is very simplistic.