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.
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?
Larsen wants to spend his time trying to increase profits for Wengart Aircraft. His yearly bonus is totally based on the profits. Since he spending his energy in other places instead of investing his time in implementing TQM but Larsen thinks he is not needed to lead the team. Larsen should spend more time making sure the company’s customers are happy with the quality and the profits will come. 2.
The first and the biggest challenge was adding unique features and services while still keeping costs and ticket prices low. Adding features such as leather seats, movies and TV, and free in-flight Wi-Fi, as well as more superior on-board service would increase production cost, training cost, and maintenance cost, thus caused lowering costs but creating higher values and improving quality to be difficult. To address this challenge, JetBlue would need to design new features with quality in mind in order to lower maintenance cost and after-sale service cost. Second challenge was the transition from the already established brand image of a low-fare airline company to a company with higher perceived value. Because customers had been used to the original business model, changing their perception of the brand was not an easy task.
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
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-
Case Study 6 Analyzing Managerial Decisions: United Airlines Discontinuing United Airline flights from San Francisco to Washington D.C is not the best option in this case. In this case United Airlines need to view the calculation to make sure they are accurate and are reported accurately by WSJ. I also think the use of marginal analysis would be very beneficial in this case. Companies use marginal analysis as a decision-making tool to help them maximize their profits. Individuals unconsciously use marginal analysis to make a host of everyday decisions.
COO David Barger and CFO John Owen had worked in airline companies before joining JetBlue. JetBlue’s comparative advantages are demonstrated as following areas: * Offer passenger great experience by providing new aircraft, free Live TV, high quality customer service and most importantly, it offers this great service with low fares, and this is attributed to its fuel efficient strategy (6.98 cents versus an industry average of 10.08 cents) * Advanced technology allows JetBlue to calculate the weight and balance of the aircraft and also equip cockpits with security equipments. * Building strong employee morale through generous compensation and passionately communicating the company’s vision to employees can provide employees with greater motivation and it is good for the company in a long term prospective. Advantages and
The resources and capabilities that are critical to Southwest Airlines operations include a no-frills flight service to lower costs and minimize turnaround times, a family type corporate culture that ensures employee satisfaction and a frequent flyer program that retains loyal customers while adding new ones. These resources and capabilities are difficult to imitate by competitors which gives Southwest its sustainable competitive advantage. Southwest operates a linear route structure (point-to-point) through less-crowded secondary hubs in order to avoid flight congestion and high costs that are associated with primary hubs. This strategy perfectly caters to frequent business and leisure travelers who are willing to forego the frills offered by Southwest’s competitors for cheaper tickets. Southwest uses only Boeing 737 model planes for their flights, the usage of 737’s only reduces plane maintenance time and avoids delays.
Dispite the fact that airplane brings a lot of benefits to people’s life, I keep the firm hold on the view that airpalne has both advantages and disadvantages. By RubyLe1 | August 2013 Docs By quocviet46 | May 2013 The advantages and disadvantages of travelling by airplane As well as being very exciting, airplane travel really can be one of the most efficient ways to travel around the world. The availability of cheap air travel means that it is now easy for almost anyone to fly anywhere. We will now look at the advantages and disadvantages of air travel. The Pros of Travelling by Airplane.