1.0 Introduction JetBlue launch its operation in February 2000. It is a domestic airline that provides superior customer services at low fares. This company is able to stand strong even after the tragic events of September 11, 2001. As a new entrant in the airline industry, JetBlue provides wider cabin and wider seats for the passengers and innovation IT programs such as Internet booking system to gain market share. JetBlue started to experience slowed growth from 2005 to 2007 in the competitive environment when major airlines start to expand their business into domestic businesses.
Strengths of Southwest Airlines Swot Analysis • Has experienced very fast growth since its inception in 1971. • Offers credit based on the number of trips with the airline instead of the total miles traveled. • Was the first to offer senior discounts, ticketless traveling, and services for air freight delivery. • Carefully considers each applicant so that they are sure to hire the best employees which leads to excellent service for their customers. • Offers reasonably priced travel packages with low frills and excellent customer service.
Highly competitive industry 2. Unsuccessful implantation of growth strategy 3. The hiring of competent staff who maintain the culture of JetBlue JetBlue’s strategy of maintain customer excellence and providing needed low cost service is a definite way to stay up above the competition, customers want a low cost airline that gives them what they need in terms of pricing as well as destination. JetBlue, will be in a position of failure if a growth strategy is not in place to increase capital and foresee methods in which to cover debt and make a profit “ Achieving our growth strategy is critical in order for our business to achieve economies of scale and to sustain or increase our profitability” (JetBlue,2004) Gating is an important issue that must be looked at, due to the fact it could limit their sales “We will also need to obtain additional gates at some of our existing destinations. Any condition that would deny, limit or delay our access to airports we seek to serve in the future will constrain our ability to grow” (JetBlue, 2004).
Southwest Airlines- The Influence of “LUV” Abstract Southwest Airlines is the largest carrier in the United States based on the sheer number of passengers carried domestically in a year. Given the hardships faced by similar airlines in the past years, Southwest Airlines no-frills approach has been their ticket to success. “They began with one simple notion: If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline”. (Southwest.com, 2012) Southwest Airlines- The Influence of “LUV” Southwest Airlines was founded on March 16, 1967 in Dallas, Texas, and commenced customer service on June 18, 1971. They began with three Boeing 737 aircraft serving three Texas cities- Dallas, Houston, and San Antonio.
JetBlue started by following Southwest's approach of offering low-cost travel, but sought to distinguish itself by its amenities, such as in-flight entertainment, TV at every seat, and Sirius satellite radio. JetBlue operates one of the youngest fleets in the skies with an average age of 5.1 years between both types of aircraft. The airline mainly serves destinations in the United States, along with flights to the Caribbean, The Bahamas, Bermuda, Barbados, Colombia, Costa Rica, the Dominican Republic, Jamaica, Mexico, Peru, and Puerto Rico. As of October 2013, JetBlue serves 84 destinations in 24 states and 12 countries in the Caribbean, South America, and Latin America. JetBlue took off on February 11, 2000, with an inaugural flight between New York City’s John F. Kennedy International Airport and Fort Lauderdale, Florida.
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?
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.
JetBlue Case When first started, JetBlue was of the cost leadership type of generic business strategy, in which the company improved upon the low-fare airline business model of the SWA to reduce its cost below that of its competitors, and offered its costumers ticket with lower price. However, later JetBlue started to pursue the integration strategy in order to enhance its differential appeal while keeping costs low, but I believe its ultimate goal was to transit toward differentiation strategy. JetBlue added many new value-enhancing features and was trying to offer its customers better customer experience. However, because requirements are conflicting between cost leadership and differentiation strategies, JetBlue faced challenges pursuing the integration strategy. The first and the biggest challenge was adding unique features and services while still keeping costs and ticket prices low.
Since inception, JetBlue’s strategies were to use technology, innovation, and human services to create a competitive advantage against their competitors. They wanted to be able to provide high quality airline services while keeping fares at an affordable rate. With over 30 years experience of service-based businesses, Ann Rhoades (Rhoades) fits the culture and vision of JetBlue. She plays a critical role in developing a value-based team that truly cares for their crew members. Prior to joining JetBlue, one of Rhoades’ conditions for joining the team was defining what the company stands for.
Boeing’s success depended directly on the success of those airline companies. Boeing was looking to take an opportunity advantage of an “e-Enabled” operating environment in which every aspect of an airline’s and it supplier and partners operations would be integrated through Information Technology (IT). By providing airplane information systems that could be better networked with airline ground systems as well as new products, services, and solutions within the networked environment, Boeing could help airlines operate more efficiently while also creating preference for Boeing products and services. Boeing had a vision 2016 that centered on three strategic initiatives: Run a health core business, leverage strengths into new products and new services, and open