Case Study Jet Blue
Case Study Jet Blue
INDUSTRY
The airline industry has seen many changes and problems over the last ten years. Some of these issues were because of the economy and others were simply because of competition and the need for your company to adapt with others. The airline industry in 2006 only had two types of competitors and if you could became a leader in one of them you would see your profits vastly rise. The difficulty in become one of these leaders was that the industry is very tough. Every move you make has to be very strategic and carefully throughout. Since the airline industry is so expensive, one wrong move or purchase could cause you to be bankrupt in a year. Along with that you always want to try to keep your costs as low as possible and your staff trained to perfection. One of the ways to do this is to choose what type of aircraft you want to use and stick with it. Another competitive strategy is to make sure you make most of your decisions veered towards what the customer’s wants and needs are.
The airline industry is in it mature stage of life and not really going anywhere. There is a slowing growth rate and the customer base is pretty constant. The standards for technology are all basically the same and will remain the same. Little things here or there will eventually be implemented but nothing too severe. Companies that are not producing profits are beginning to exit the industry allowing for the bigger ones to take over their customer base. Some of the opportunities that companies in this industry can change are their current products or their service. They can increase what they already to make it better and more appealing, but it will only do so much in the long run. Working to perfect their customer service will help produce long lasting, reliable customers that will use their planes whenever they travel. Other than that the industry won’t see many changes for years to come. New companies won’t want to enter the market because the barrier to
INDUSTRY
The airline industry has seen many changes and problems over the last ten years. Some of these issues were because of the economy and others were simply because of competition and the need for your company to adapt with others. The airline industry in 2006 only had two types of competitors and if you could became a leader in one of them you would see your profits vastly rise. The difficulty in become one of these leaders was that the industry is very tough. Every move you make has to be very strategic and carefully throughout. Since the airline industry is so expensive, one wrong move or purchase could cause you to be bankrupt in a year. Along with that you always want to try to keep your costs as low as possible and your staff trained to perfection. One of the ways to do this is to choose what type of aircraft you want to use and stick with it. Another competitive strategy is to make sure you make most of your decisions veered towards what the customer’s wants and needs are.
The airline industry is in it mature stage of life and not really going anywhere. There is a slowing growth rate and the customer base is pretty constant. The standards for technology are all basically the same and will remain the same. Little things here or there will eventually be implemented but nothing too severe. Companies that are not producing profits are beginning to exit the industry allowing for the bigger ones to take over their customer base. Some of the opportunities that companies in this industry can change are their current products or their service. They can increase what they already to make it better and more appealing, but it will only do so much in the long run. Working to perfect their customer service will help produce long lasting, reliable customers that will use their planes whenever they travel. Other than that the industry won’t see many changes for years to come. New companies won’t want to enter the market because the barrier to
Cited: Barney, Jay B., and William S. Hesterly. Strategic Management and Competitive Advantage: Concepts. Upper Saddle River, NJ: Prentice Hall, 2010. Print.