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-
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?
The first thing the airline must do is look at the firm supply. If they are to continue the flights from those two hubs then they must determine if at some point in the long run the firm must be profitable or should exit the market. (Brickley et al., 2009, p. 181) Since I would assume that the costs of that route would be quite high it would appear that it would be extremely difficult for them to make a profit especially since there are lower cost airlines that customers could do business with. A competitive firm should produce
These methods have increased because it helps the business to reduce their expenses and watch their budget more carefully. This links in again with following trends of technological advances. Business travellers will look for budget airline alternatives, and may fly economy instead of business. Because of this, there are more flight and accomondation providers in competition to give their customers the lowest price possible so as they get value for their money. Businesses such as EasyJet and Ryanair have benefit from this.
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.
For an airline to simply apply a percentage or portion of the costs of airport fees, baggage handlers, ticket agents and building charges to each flight to cover the costs of sunk or overhead costs would most likely eliminate 60 to 70 percent of the flights they provide. In every industry they have their “cash cows” if you will, that cover these sunk costs. So, providing additional fights to areas that are not as high demand can still be a valuable demand to be met provided they can at least cover the crew and fuel costs. If every airline did as the WSJ suggest in applying a percentage of the overhead or sunk costs of running the airline to each flight, many smaller regions would have very few flights in and out of those areas. Making travel to these areas much more expensive than what is really necessary.
Using a holistic marketing approach would benefit Classic Airlines tremendously. An organizations success is dependent on different departments within the company, its customers, products, and communication. The holistic marketing concept would be beneficial to Classic Airlines. The holistic marketing approach uses the interdependencies between various aspects of the company and society. If the CEO and Chief Financial Officer (CFO) would use the holistic marketing approach the airline would benefit with the change.
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
Presently, gas prices have dropped. However, the airlines continue to pass along the fees to its passengers to increase revenue. Clearly, the fees that began originally in response to fuel prices continue to be part of the revenue generating strategies of airlines. (2) Shortage of Pilots: As baby boomers retire by the thousands, the airline industry is experiencing a shortage of pilots. Before becoming captains, pilots must earn sufficient fly hours.
Due to Because of the growth in the low-cost segment of the airline industry, Southwest has tomust continue to innovate and differentiate itself from others to perpetuate its success and popularity. An evaluation of the company’s internal strengths and weaknesses and external opportunities and threats served as the foundation for this strategic analysis and marketing plan. The plan centers on Southwest’s growth strategy by , suggesting ways in which it can build on existing customer relationships and on theby developingment of new services targeted to specific customer niches. (Pride & Ferrel, 1995) SITUATION ANALYSIS Southwest Airlines provides low-fare air transport among 58 cities within the United States. According to the company, “Southwest is dedicated to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride and company spirit.” As of December 31, 2007, Southwest served 411 non-stop city pairs.