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.
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.
The asset turnover will increase when their profit margin increases, the high profit margin is because they are currently expanding . 2. To a certain extent, the high level of popularity was from their effective market analysis. In 2012 superstyles spent 20% of their profits on marketing. Compared to the industry average superstyles spends 50% more on marketing, however I think it is very useful as they are expanding and don’t have the brand image and reputation yet.
Question One: The airline industry can be broken down into three primary segments: major airlines, regional airlines, and low-fare airlines. JetBlue Airline is a domestic airline in the United States using a combination of low cost and differentiation as its strategy. In order to know the key forces in the general and industry environment that affects its choice of strategy. Based on Porter’s Five Forces Model, the key forces directly influences are: The threat of new entrance is low. In JetBlue case, the current economy situation creates high market entry barriers, which consists extremely high fixed cost and numerous capital requirement.
Unemployment never exceeded 900,000 in this period which brought comfort to a generation who had not forgotten the perils of the high unemployment in the 1930’s. In addition to this, Butler produced a ‘give-away’ budget that provided the middle classes with £134 million tax cuts. The Keynesian economics at the time were extremely popular and were the cause of this huge surge in affluence and living standards. The prosperity was clear to see everywhere, people had more money than ever before, which was summarised in Macmillan’s ‘never had it so good’ speech. The Keynesian economics at the time were extremely popular and were the cause of this huge surge in affluence and living standards.
JetBlue’s strategy for success is product leadership with customer value proposition. With their strategy they promise their customers high-quality customer service at a low fare on primarily point-to-point routes. This is evidenced by the fact that JetBlue has one of the largest load factors in the United States. JetBlue implements this strategy by having a productive workforce, having low distribution costs, flying the same type of aircraft, and utilizing their aircraft effectively. What business risks does JetBlue face that may threaten the company’s ability to satisfy stockholder expectations?
A positive trend shows that total liabilities have dropped $1.7 million, which is accounted for by a $2 million, or 42%, decrease in long-term debt. Total stockholder’s equity has increased over $600,000 to $22.1 million, which represents a 3% improvement (“University of Phoenix,” 2006). Riordan has made significant strides in paying off debt and reducing liabilities by 12% and increasing stockholder’s equity in these 3 years. These positives continue to make Riordan Manufacturing a valued company to be sought after by investors. Income Statement Analysis Table
These stats show that the Lakers franchise has done an excellent job in terms of the “Product” and “Price” section. The weaker parts of the Marketing mix would be the “Promotion” section due to the fact that for the past 10 years, the home attendance hasn’t changed much. This is because the Lakers franchise average ticket price is $ 113 more than any other team in the NBA causing the ticket sales which affects the NBA Attendance Report landing the Lakers at number 8. The “Place” is also a
The airline's aggressive cost-saving plans and measures, started in 2010 following its new business strategy, has yielded positive results in terms of cost-control, cost-efficiency, expenditure reduction and manpower optimization. Encouraged by the results, the national carrier is pushing forward with its cost-efficiency measures in 2012 and is targeting a further 15% reduction in its cost base for the full year; it has already achieved a savings of BD6.8m between Jan and May this year. Announcing it today Gulf Air CEO Samer Majali said, 'I am glad to report that our several restructuring initiatives aimed to reduce costs have helped us reduce our operating losses, achieve cost efficiencies without affecting the quality of our products and services offering and customer service.' He continued, 'Despite a very difficult 2011 caused by the regional geo-political situation and higher fuel prices that have severely impacted our business, we were able to achieve this. We used this difficult period as an opportunity to focus internally reviewing our functions such as operations, services, products, fleet maintenance, fuel savings, contract negotiations and manpower optimization.
They were looking forward to a strong 2007 when timing worked against them this time. The northeaster that hit just days after Jet Blue's seventh anniversary on Valentines Day would prove to be the most formidable challenge faced to date. In my opinion, the key issue or challenge faced by David Neeleman, Dave Barger, and the Jet Blue Board, was the fact that they prided themselves on "bringing humanity back to air travel and making the experience of flying happier and easier for everyone." (1) This vision which would further evolve into the "Jet Blue Experience" and self coined explicit labeled "the best service in the business", (2) increased the zone of tolerance between adequate service and desired service. (3) Explicit and implicit service promises heightened customer expectations.