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Jet Blue Situational Analysis

In: Business and Management

Submitted By Marsita
Words 1150
Pages 5
I. Customer Analysis a. Who: consumer, business, national, international i. Consumer: Younger, affluent, present on social media, fare-conscious 1. The “middle space” for those who dislike larger airlines and love amenities that low-cost rivals don’t offer ii. Business: NY Jet’s Official Team Carrier iii. National: Serves 90+ destinations in 25 states, the District of Columbia, Puerto Rico, and Virgin Islands 2. New routes from: Detroit, Ft. Lauderdale, Hartford Springfield (CT), Washington-National (DC), Salt Lake City, Orlando, Las Vegas, San Francisco, Cleveland, West Palm Beach, NYC, Pittsburgh, Boston, Savannah/Hilton Head, Charleston, Fort Myers, Reno/Tahoe, Martha’s Vineyard, Anchorage, Portland, and Nantucket iv. International: Serves 15 countries in the Caribbean and Latin America 3. New routes from: Nassau (Bahamas), Port of Spain (Trinidad & Tobago), Curacao (Curacao), Catagena (Colombia), Montego Bay (Jamaica), Newark, Punta Cana, Hyannis/Cape Cod (MA), St. Lucia (UVF), Puerto, Plata (DR), Santiago (DR), and Port-au-Prince (Haiti) b. B2B, B2C, etc. v. B2B: Subsidiary, LiveTB, LLC, provides in-flight entertainment systems and internet connectivity in commercial aircrafts, sells vacation packages through JetBlue Getaways which provides fares for air travel on JetBlue along with a selection of JetBlue-recommended hotels, resorts, car rentals, and attractions 4. Partner Airlines: Aer Lingus, Aeroflot Russian Airlines, Air China, Ana, Asiana Airlines, Avianca, British Airways, Brussels Airlines, Cape Air, Cathay Pacific, China Airlines, EgyptAir, El Al Israel Airlines, Emirates, Etihad Airways, Eva Air, Hainan Airlines, Hawaiian Airlines, IcelandAir, Japan Airlines, Jet Airways, Korean Air, Lan Airlines, Lot Polish Airlines, Lufthansa, Porter, Qatar Airways, Royal Air Maroc, Seaborne, Silver Airways, Singapore Airlines, South African Airways, TAM Airlines, Transaero Airlines, Turkish Airlines, Virgin Atlantic 5. Amenities: Doritos Tortilla Chips, Keebler Elf Grahams, PopCorners Popcorn Chips, Skeeter Nut-Free Chocolate Chip Cookies, Snyder’s 100 Calorie Pretzels, Terra Blues Potato Chips, Coke products, Seagram’s products, Ocean Spray products, Campbell’s Tomato Juice, Mr. & Mrs. T Bloody Mary Mix, Fuze Iced Tea, Dasani Bottled Water, Dunkin Donuts’ Coffee and Tea, alcohol vi. B2C: bulk of traffic is leisure travel, relatively small percentage of business is business customers (20 – 30%) c. Specific products for specific customers vii. 36 free, live channels from DIRECTV, first checked bag is free viii. Even More Space seats (includes additional room, early boarding, early access to overhead bins, and Even More Speed – expedited security – available for purchase) ix. Mint (includes faster check-in, speed thru security, early boarding, free Fly-Fi – broadband internet service, nonstop entertainment – SiriusXM Radio, improved seats – lie-flat seats with massage option and adjustable firmness, dine in style – meal options from Saxon + Parole and dessert from Mah-Ze-Dahr Bakery and Blue Marble Ice Cream, curated comforts – products from Birchbox, and first bag to carousel – pick up bag at exclusive baggage claim. Available to purchase) x. Eat Up Boxes (available to purchase) d. Decision process II. Competitor Analysis e. Identification xi. Direct: American Airlines, Southwest Airlines xii. Indirect: Alaska Air Group, SkyWest f. Major Competitors xiii. Market share 6. American Airlines: 44.98% 7. Southwest Airlines: 31.29% 8. JetBlue Airways: 9.15% 9. Alaska Air Group: 9.03% 10. SkyWest: 5.55% xiv. Strengths & Weaknesses 11. American Airlines: a. Presence in key East Coast markets including La Guardia, Reagan International, and hubs in Charlotte, Philadelphia, Phoenix, Dallas-Fort Worth, Chicago, Miami, New York, and LA (strategic hub locations & strong presence in major business hubs) b. Service to Europe and Latin America-Caribbean market c. Globally recognized & brand strength (most established) d. AAdvantage – perennially recognized as one of the top customer loyalty programs e. Inability to compete on international flights f. West Coast weakness inhibits ability to reach Asian markets g. AA went into bankruptcy in 2011 (labor and union issues) h. Can’t adapt to industry changes i. High complaint rate & bad customer service j. Lowest in on-time flights k. Credit rating inhibits ability to enter fuel hedging contracts 12. Southwest Airlines: l. Financial wherewithal m. Iconic brand n. Maintains robust domestic network o. Minimal revenue opportunities p. Outdated product 13. Alaska Air Group: q. Award winning customer service r. One jet type fleet s. Significant market share in geographic niche t. Vast array of in-flight entertainment and internet options u. Frequent flier program that rewards loyal passengers v. Fuel hedging strategy to keep costs low w. Extensive partnership with other airlines which expands service x. Limited geographic coverage and hub airports y. Limited name recognition 14. SkyWest: z. Long-term fuel contracts {. High on-time arrival rates |. Decreased booking and baggage fees }. Multiple primary hub locations ~. Increased multiple-stop destinations . Minimal flight attendants per flight . Increased plane turnaround times . Short-term union contracts xv. Strategic Perspectives 15. American Airlines: 16. Southwest Airlines: 17. Alaska Air Group: 18. SkyWest: III. Industry Perspectives g. Characteristics of industry xvi. Highly competitive xvii. Profits sensitive to adverse changes in fuel costs, average fare levels, and passenger demand xviii. Passenger demand and fare levels have historically been influenced by the state of the economy, international events, industry capacity, and pricing actions taken by other airlines xix. Competitive factors are fare pricing, customer service, routes served, flight schedules, types of aircraft, safety record and reputation, code-sharing relationships, in-flight entertainment systems, and frequent flyer programs

Co.'s competitors and potential competitors include major U.S. airlines, low-fare airlines, regional airlines and new entrant airlines. The major airlines are larger, generally have greater financial resources and serve more routes than Co. does. They also use some of the same advanced technologies that Co. does, such as ticketless travel, laptop computers and website bookings.
American SW: http://www.businessinsider.com/american-airlines-merging-with-us-airways-2013-2 http://economics-files.pomona.edu/jlikens/SeniorSeminars/vector2010/pdf/amr.pdf Southwest SW: http://centreforaviation.com/analysis/southwest-airlines-swot-financial-strength-is-mainstay-but-cost-and-culture-challenges-loom-large-187714
Alaska SW: http://www.jamespeterson3.net/alaska-airlines-strategic-management-report.html
SkyWest SW: http://www.ehow.com/about_6701163_skywest-swot-analysis.html

Marketing Strategy Formulation 1. Marketing Objectives a. Quantitative: Focus on obtaining more of the market share by increasing the number of customers reached, focusing on converting customers from the larger airlines, and adding destinations in untouched states (AL, AR, DE, HI, ID, IN, IA, KS, KY, MN, MS, MO, MT, NE, NH, ND, OK, SD, WV, WI, WY) i. Hawaii – Maui, Honolulu ii. Missouri – Branson, St. Louis iii. Wyoming – Jackson Hole (Yellowstone) 2. Market Segmentation b. Quantitative: The company as a whole has a great record for customer service. In order to generate the highest revenue the company must attempt to gain more market share through expansion. The company has limited flights and a limited coverage area, and their name is not adequately marketed which is necessary in order to start competing in the higher revenue market.

http://www.tripadvisor.com/TravelersChoice-Destinations-cTop-g191 http://travel.usnews.com/Rankings/best_usa_vacations/…...

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