In JetBlue case, the current economy situation creates high market entry barriers, which consists extremely high fixed cost and numerous capital requirement. Moreover, the potential and existing competitors affect the industry has a low profit margin, and it is difficult for new entrances to differentiate their products and services from competitors. The bargaining power of supplier is high. The key inputs for the airline industry are the fuel and aircrafts. Boeing and Airbus dominate the aircraft manufacturing industry.
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
Besides, one of the stakeholder-rich environments is airports. BAA is a large company who privately operate a number of UK airports, including London Heathrow Airport. Their mission statement is to achieve improvements in the profitability rapidly and to maximize the profit. There are several stakeholders of BAA; they can be divided into internal and external. Airlines, logistics companies, the employees and the customers are those internal stakeholders.
Firstly, market analysts began by talking directly with major airlines to get their estimates of future needs and then they combined this information with econometric models to generate forecasts. Segments we defined by range of travel and all forecasts were based on the following assumptions: continued regulation of the airline industry; continued airline preferences for routes that directly linked pairs of major cities; steadily rising fuel prices and no new competition from other airframe manufacturers in the medium range market. Configurations include the choice of engines, wings and tail. The process of configuration is complex and repeatedly. The configuration changes constantly due to the requirement s of customers.
These intellectual property laws are recognized for major contributions to society and the economy. Recently intellectual properties have been credited with the majority of companies’ success, therefore catapulting intellectual properties to the forefront of our social and economic interest. Southwest Airline owns the rights to certain intellectual properties that allow it to stand out among its competition. If a company, especially one in such a highly competitive industry, does not have exclusive rights to certain aspects of its operation than it is extremely difficult to compete. The airline industry seems to be one those that it is very difficult to obtain intellectual properties, especially when dealing
STA Travel Competitive Analysis Normally, the companies in travel industry have to compete very hard in order to gain profit and to be in the top rank of market share since there are many companies who work related to this industry. STA travel is also a company which is in this industry and it always has to find out good strategies to compete with other leading companies such as Thomas Cook, Trailfinder and etc. It is interesting to know why Thomas Cook can be the leader of all company in the world. It is because the main strategy of Thomas Cook is to sale charter packages where two or more components of travel, such as flights, hotels, transfers and rep services, are bundled together in advance and sold to customers through brochures and agents in stores, online through various websites or over the phone from call centre. Moreover, the company is now planning to merge their U.K. travel and foreign-exchange units in a deal that will create a 1,200-store chain and save more than 35 million pounds ($56 million) a year.
The current locations are great to make this move as they reside by the airport and will target the business travellers. GR already utilizes Central and On-line bookings which again will target business travellers as they tend to use this service the most. Business travellers are moving towards staying at up-scale hotels and this move will definitely increase occupancy rates of
TITLE OF ASSIGNMENT CRAFTING AND EXECUTING STRATEGY STUENT MOHAMMAD HOSSAIN INSTRUCTOR DR. RHONDA POLAK COURSE TITLE STRATEGIC MANAGEMENT –BUS 599 DATE: - OCTOBER 16, 2011 Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy. Trends in the US airline industry have an impact the performance and strategies of the airlines. As a result, the Jet Blue has struggled to survive. The trends of U.S. airlines industries are discussed as follows: (1) Increased crude oil pricing: fluctuations crude oil price lead to passenger fees for revenue generation, This dramatic price increase caused airlines to struggle to offset the cost of fuel. Presently, gas prices have dropped.
An Analysis of Southwest Airline Strategy Using SWOT Concept Joseph, F. Okpe University of Maryland University College An Analysis of Southwest Airline Strategy Using SWOT Concept Faced with continuing economic pressure, mounting competition, and a constantly evolving hyper-competitive business environment business organizations worldwide are being forced to radically change and reinvent their strategies and/or business models or face extinction. The winning strategy is one that enables a company to outperform its competition in terms of long term competitive advantage in the market i.e., profitability, cost reduction, customer satisfaction, product and service delivery innovation, production efficiency, production differentiation, and cheap but qualitative products and services (Boone & Kurtz, p. 273, 2006). According to Thompson (p. 1, 2010) a successful strategy is one that sets a company apart from its rivals and create a competitively advantage over the long run, simply by causing an attractive numbers of buyers to have lasting reason to patronize a company’s product’s as opposed to that of its competitors. Southwest Airlines is a prime example of a company in a very competitive industry that has perfected its business strategy and model and in the process gained competitive advantage over its rivals simply by providing customers with what they perceive as superior value services compared to the offerings of rivals airlines. Superior value can mean a good product (or services) at a lower price; a superior product or service that is worth paying for; or a best-value offering that represents an attractive combination of price, features, quality, service, and other appealing attributes (Thompson, p. 87, 2010).
The competition for the US package delivery market has recently been focused on the air-express segment. The two key players in this melodrama are UPS and FedEx; they control the package delivery market in the US and arguably the world. While UPS has dominated the ground area, the air-express has often been FedEx’s playground. UPS’s grand entrance to the market was by being willing to compete on price and by cutting FedEx’s list price in half. Each firm has done everything they can to one-up each other and the competition has been fierce.