introduction

Zainab Dabo Aliyu 3607744Arshed Aydrose 3351166Hatim Piplodwala-3549884

IntroductionJetBlue Airways is an American low-cost airline

based in New YorkIt was founded in 1998 by David NeelemanIt uses one of the youngest fleets in the skiesA notable incident that happened was the

February14th,2007 ice storyAs a result, they created the “Customer Bill of

Rights”David retired after the incident in 2007

Swot AnalysisSTRENGTHLow operating costEfficient employeesGood customer serviceEffective use of

technology

Weakness Relatively new

companyWeak financial

reportingIt has been using a

single fleet

Swot AnalysisOpportunitiesJetBlue financial position

is strong so it can think of expanding nationally and internationally

Add up more services for passengers

Increase number of flights

Joint ventures

Threats TerrorismRise in fuel pricesStrong competitionEmployee unions

5 Generic Strategy

Potters 5 Forces

Attracting

Customers

Managing its fleet

Managing its

People

Managing its

Finances

Key Success Factors

Jetblue Strategy (2008)Re-evaluate the ways the company was using

its assetReduce capacity and cut costRaise fares and grow in certain marketOffer improved services for corporation and

business travellersForm strategic partnershipIncrease ancillary revenues

Factors driving change in the airline industry

Fuel pricesAircraft and RoutesThe airports and geographical regions servedThe market shareConsumer demands regarding air travel

Market Share

PESTEL Analysis

Jetblue

PESTEL AnalysisPOLITICAL FACTORS

September 11, terrorists attack.

Political stability.Competitive Airline

industry.Regulatory factors.

ECONOMIC FACTORS

Improved purchasing power.

Rise in Inflation.Rise in oil prices

PESTEL AnalysisSOCIAL FACTORS

Greater customer awareness.

Increased entertainment level.

Security level of customers.

Bad services & lost baggage.

TECHNOLOGICAL FACTORS

Beginning of e-ticketing.

Automated systems (cockpits).

Advertisements (newly introduced animated).

Key Issues Faced By JetBlue and Solutions14th Feb Valentine’s Day weather related

incident in 2007 .

Lead to destroy reputation and step down of David Neeleman as CEO.

Incorporating new technologies.Best practices and providing comprehensive

cross-training to all employees.Making JetBlue’s Vision more solid and

famous.

Key Issues Faced By JetBlue and Solutions Cont..Increase in Fuel prices and customer demand for air

travel.it affected the industry’s profitability and each air

carrier responded differently.Charge for things that used to be free such as

checked and carry-on baggage, meals, seat assignments, etc

Using one engine for taxing to take-off runways, flying at higher altitudes where oxygen quality is lower resulting in less fuel being burned.

Aircraft flying without full fuel tanks and topping off at airports with less expensive fuel.

Strategic Group Mapping

THANK YOU.

QUESTIONS??