Based on the book when there are competitive markets such as airlines, a company certainly needs to look at costs and revenue very closely. (Brickley, Smith, & Zimmerman, 2009, p. 180) In this case I believe that the flights from San Francisco t Washington DC should be discontinued. Even though United Airlines is a large company and profitable if they continue these flights in the long run they will lose money. The other option that they would have would be to increase the fares to cover those costs, but since the airline industry is a competitive market people are more likely to go with a lower cost airline. The first thing the airline must do is look at the firm supply.
Americans today have much concern about the concept of outsourcing. Ron Hira and Anil Hira in there book Outsourcing America, pose the question “Who is right and why is there difference in opinion whether this is good for America?” Critics continue to argue that outsourcing has a negative impact on American jobs, the economy, national security and pose that should this be allowed to continue, a prosperous future for all Americans is dim. However, it is also profitable for all to view their complaints as objectively as possible because they would never mention the vast benefits that come with outsourcing, especially here in America. Yes, the subject does bring a lot of insecurity and confrontation, but there are those who see it differently. While outsourcing has negative and positive implications, in the long run the future for American will lean towards the positive side of the scale.
(Argenti, 2009, p.100)It is obvious that David Neeleman and JetBlue set out to exceed customer satisfaction and ingeneral, tend to go above and beyond what the average airline has to offer. However, it seemsthat their goal of excellent customer service was higher in importance than teaching theiremployees how to communicate in emergency situations, such as the one presented to us in thecase study. It is essential for companies to find a competitive advantage to set themselves apartfrom other companies in their industry, however it is also crucial for these companies to find abalance and continue to value the basic fundamentals of communication.Data AnalysisJETBLUE AIRWAYS CASE STUDY ANALYSIS 3 • 2. JetBlue went from startup company to powerhouse of the sky in 2007 with overall growthin terms of destination and size. Run by CEO David Neeleman’s expertise and experience in theindustry, the
If the CEO and Chief Financial Officer (CFO) would use the holistic marketing approach the airline would benefit with the change. Both the CEO and CFO are ignoring good marketing and customer relations. By ignoring both of these principals Classic Airlines revenue is suffering. With holistic marketing everything matters. If the CEO and CFO adopt this principal Classic Airlines will thrive in the future (Kotler & Keller,
This removed the perception of IT as “overhead.” IT also helped integrate acquired companies in parallel with scaling up the company infrastructure. In addition, Solvik’s vision of IT decision making was shared and supported by CEO Chambers who felt Cisco should spend whatever was necessary if it helped the business grow and be more productive. Solvik’s IT decision-making model utilized a CFP system with a focus on ROI. Since line organizations paid for projects out of their own IT budget, there were elements of ABC in play. Projects costs were placed in line organization buckets and charged to Cisco’s profit centers.
Another modest force is competition from rivals. This is only a modest force because Blue Nile has a bigger brand recognition name and economies of scales due to their large size in addition to the high customer loyalty from consumers. However they do have to be wary of the competitors who can easily steal their customers due to no switching costs. The second strongest of the forces has to be buyer power since buyers can switch instantly at no cost, they tend to be well educated in regard to what they want in addition to being very price sensitive . The strongest force they have to deal with is competition from substitutes such as the common retailers like Jared.
A monopoly is where you can set prices almost everywhere you want, and there is no other competition. This is referred to as predatory pricing, where companies charge a price lower than production costs. These companies believe their competitors can’t afford the loses. Cable companies don’t worry about competition due to the protection they enjoy from the government. The cable companies get away with this by claiming they do not have competition, cities award them the contract by providing coverage, even though they may not have the lowest price.
The merger between Live Nation/Ticketmaster would be problematic according to critics because it channels in on an increased marketing strategy. While they also generate revenue they are also distracting people from the actions of Ticketmaster. With the merger between Live Nation and Ticketmaster it almost seems as though they control the sale market because of their controlling nature with Ticketmaster being the fore front of ticket sales and Live Nation being the largest management company they are controlling profitability. Which is evident in John Seabrook as stated “the company could deny its superstar acts to venues that refuse to use its promotional
Julie Mathis UCCA 102.05 Textual Analysis 27 April 2008 Drawing the Line between Border Control and False Altruism America is “The land of the free.” However, the context of what is “free” in the United States is being manipulated into a tumult of chaos. Illegal immigration is the root of a problem far exceeding what is ethical. It is inwardly disrupting a country founded upon a legal justice system and one not subservient to crime. The cost of cheap labor does not outweigh the incumbent abuse legal American citizens have to pay for something that any other country would never have tolerated. How can an illegal epidemic pose such differing viewpoints on the matter?
To add to the frustration, Jet Blue does not have a system that allows them to track customer’s lost luggage. This is a system that no airline should be without because there can often be no cash value placed on a person’s belongings. Passengers put their trust in the airline that their belongings will be handled responsibly. Jet Blue had all bases covered in terms of a smooth operation. The airline needs to be more cautious and attentive to how bad situations may be handled in the event that they may occur.