External and Internal Environmental Analysis JetBlue

Topics: Southwest Airlines, Delta Air Lines, Low-cost carrier Pages: 6 (1120 words) Published: June 14, 2015


External and Internal Environmental Analysis
STR/581

JetBlue Environmental Analysis
External and internal environmental analysis is a critical component for an organization seeking to achieve its goals. The follow information within this paper presents a complete external environmental and an internal competitive environmental scan for JetBlue Airways. The information provided identifies and analyzes the most important external environmental factor in the remote, industry, and external operating environments. When addressing external environment it speaks to a set of forces and conditions outside the organization that can influence its performance. The most common forces include political, economic, social, technological, environmental, and legal (or PESTEL).

The paper will further identify and analyze the key internal strengths and weaknesses of JetBlue Airways. When addressing the internal environment it speaks to the key factors and forces within the organization affecting its operation. The internal strength and weaknesses will cover an assessment of the JetBlue Airway’s resources, their competitive position and possibilities within. Lastly the following will analyze the structure of JetBlue and how this affects organizational performance. External Environmental Factors

For JetBlue external environmental factors cover political, economic, social, technological, environmental, and legal. The most important external environmental factors in the remote, industry, and external operating environment of JetBlue can be expanded through opportunities and threats. Opportunities encompass expansion, such as increasing routes and destinations within the U.S. Global expansion falls within expansion as well, while JetBlue has many successful partnerships with international airlines there is further potential abroad. Threats include fuel costs, advanced technology, and government relations. Fuel costs and advanced technology are almost synonymous. The increasing price of fuel in turn increases operational costs. Advanced technology is a key factor in this space as well given new planes for example, have the technology to utilize less fuel in flight. Governmental regulations and legalities are another key threat for JetBlue. Airline regulations can increase expenses and potentially create inefficiency in operations in order to meet regulation requirements. Additionally, restrictions related to international trade, tax policy, and competition can thwart expansion efforts. Internal Strengths and Weaknesses

JetBlue is a pro at utilizing its resources and structure. As such, JetBlue has proven to be efficient in its internal environment. Out of the physical and human aspects of the internal environment JetBlue focuses on human as the key factor. JetBlue views its employees and their skills as the key to a successful structure by emphasizing elements of loyalty, satisfaction, service quality, productivity, capability, and output quality. JetBlue reflects a culture of employees that understand how to retain customers and can perform under various situations with an equally varied consumer base. In addition to human capital, JetBlue uses physical assets to set them apart from the rest. The airline fleet of JetBlue is very precisely selected. From its new Airbus A321 to its Airbus 320, JetBlue prides itself on comfort and luxury. Other perks offered by JetBlue include lower priced airfare compared to that of its competitors and in-flight entertainment options that succeed its competition. Internal weaknesses include a smaller base of destinations compared to its competitors, which could be viewed as a product of their smaller planes and perhaps weaker brand recognition given its newness in the airline market. The weakness can be strengthened with expanding their location/market base. Competitive Position

Major players in the U.S. airline industry include Delta Air Lines, United...

References: Cederholm, T. (2013, September 3). Overview: External factors that influence the airline industry. Retrieved May 31, 2015, from http://marketrealist.com/2014/09/must-know- external-factors-influencing-airline-industry/
JetBlue | Airline Tickets, Flights, and Airfare. (n.d.). Retrieved May 25, 2015, from http://www.jetblue.com
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