Internal capabilities/strength and weakness of JetBlue JetBlue is the largest Airline at JFK airport in New York City. The strengths of JetBlue are low operating cost. JetBlue has been efficiently utilization the resources which results in low cost operating cost. For instance, there is 6.03 cents mile vs. 10.91 industry average and also direct booking. Moreover, JetBlue has efficient employee.
In 1991, CEO Michael O'Leary visited US Southwest Airline and extracted their new strategy and business model from Southwest's Low Cost leadership model. Ryanair's Low Cost leadership model encompasses a single passenger class, a single type of airplane, a simple fare scheme, unreserved seating, flying to secondary airports, fast turnaround times, no "free" amenities, minimum baggage allowance, employees working in multiple roles, and generation of ancillary revenue( Baker, 2006). STRATEGICS CAPABILITY OF RYANAIR
Having already filled the market with 747s, Boeing is looking to capitalize on the demand for direct flights and medium capacity requirements. Airbus on the other hand is producing the A380, an aircraft capable of carrying up to 800 people. Airbus is looking to replace the ever growing old Boeing 747s in the market with a higher capacity more fuel efficient plane. Its easy to compare the two aircrafts in terms of size and primary use. The A380 is a high capacity aircraft capable of transoceanic flights, while the 787 has relatively the same traveling distance, but a maximum passenger count of 280.
As of August 2012, Southwest Airlines operates scheduled service to 77 destinations in 40 states. Southwest airlines started 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. The Mission of airlines is to “is the dedication to the highest quality of Customer Service delivered with the sense of warmth, friendliness, individual pride and Company Spirit. 7P’s of Marketing Mix 1) PRODUCT-Southwest Airlines is carrier for passengers,travelling to different places. 2) PRICE- Southwest Airlines is known for its low cost offerings.
Introduction Southwest Airlines has an incredible success story for a commercial air carrier. They are the most profitable airline with the highest customer satisfaction rating in their industry (Landes, 2008). This is accomplished by doing things simple and smart; and it all starts with their employees (Southwest refers to them as their “people”). The ‘simple’ is that Southwest typically flies point-to-point destination, low fare, low frill, short haul flights, among 59 cities in the Unites States (Freiberg, 1996). They also only use one type of aircraft (Boeing 737 series), which cuts down on maintenance costs.
The low cost airlines have developed their value chains so effective in low cost operation that they are hard to imitate, especially for traditional airlines. In these conditions, traditional airlines have had to rethink their strategies and question the old business model. Easyjet has undoubtedly proved to be one of the success stories of the low cost no frills airline market. The following report undertakes an analysis of Easyjet and identifies issues in which a strategy has been recommended for the future of the companys success. Tools and models such as the PESTEL analysis, Porters Five Force analysis, SWOT analysis, Business model, and Value chain model have been adopted to help analyse and undertstand Easyjet as a whole and develop a strategy recommendation for the business.
• Product Positioning: Operating under an intensely competitive environment, Southwest Airlines carefully projects its image so customers can differentiate its product from its competitors. Southwest positions itself in all its marketing communications as THE only low-fare, short-haul, high-frequency, point-to-point carrier in America that is fun to fly. Its low-priced fares are a brand equity which it "owns" in the mathematical sense of being the only major airline with a strong score on this attribute based on consumer research (Barlow, 2002). Southwest’s brand exudes an element of fun: a down-home attitude which it leverages to present the consequences of low fares in a positive light. "Dignify" might not be the first word one would think of to describe how Southwest treats passengers: no first class; no food other than peanuts; no assigned seats; no transfers of luggage to other airlines (Teitelbaum, 1992).
The remodeling of the airline has created a more pleasant atmosphere for the customers. They have specifically targeted business travelers. Southwest’s policy allowing customers to change flights without penalty appealed to customers. But what really made Southwest stand out to both customers were its frequent flights serving a ton of cities at convenient times and low prices. Though
Indians are travelling by flights like never before. This sea (or air) change is partly on account of the changing economy. The surge of low cost airlines in India with Indigo Airlines, Jet Airways Konnect Airlines, SpiceJet, JetLite, Kingfisher Red, Air India Express and GoAir, has made flying possible for any one. Low cost carriers are rapidly gaining market share, albeit at the expense of their full service counterparts. This is primarily because of the way low cost carriers (LCCs) have been able to control their costs at the time of recession.
Employees were also an integral part of the airlines success. Southwest made sure that their employees are more to the company than just workers. Southwest wanted to make sure that they were hiring people that best represented the company’s mission. In doing so, they hired staff with positive personalities and a sense of humor. These employees were paid wages that were in direct competition with other airlines, they were also offered to participate in the airline’s profit-sharing as well as stock ownership programs.