Jetblue Essay

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Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy The airline industry is faced with many trends that impact on a company’s strategy. Among the trends are information technology, economic slowdown/rising jet fuel prices, new entrants and rising labor cost. The revolution in information technology impacted significantly on the operations of airlines. Though Jet Blue was the pioneer in this regard, through the introduction of electronic tickets, competitor airlines subsequently invested heavily in technology. Such technological advancement placed a lot of financial burden on the operations of Jet Blue. The airline industry continues to feel the effect from the U.S economic slowdown and rise of crude oil/jet fuel prices, which have risen to record numbers with no predictable end in sight. The slow economic growth has compelled both business and individual travelers to cut back on travel expenditure thereby compelling airlines such as Jet Blue to initiate energy conservation measures, targeting specific markets and exploring the possibility of partnership with other airlines. Linked to the volatility of jet fuel prices is the increased in competition posed by new entrants to the airline industry. New entrants such as Virgin America are bracing the competition by offering lower fares to customers. Such a strategy pose a great threat to the operations of Jet Blue whose major strategy and survival is the low airfares offered. Lastly, the potential for increased labor cost as a result of the possible future shortage of pilots predicted by the International Air Transport Association will impact negatively on future expansion programs of smaller airlines such as Jet Blue. Discuss Jet Blue’s strategic intent prior to 2008 Jet Blue strategic intent prior to 2008 was to use low fares and entertaining planes to

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