Brief summary of Technique Assessment and Identification of Strategic Issues3
Key Tactical Issue, Choices and Tips for Action3
Smartest choice Recommendation4
My spouse and i. Case Upgrade (Exhibit 1)5
II. JetBlue's Strategy in Detail (Exhibit 2)8
3. JetBlue's SWOT Analysis (Exhibit 3)11
IV. Analysis of JetBlue's Economic Performance (Exhibit 4)12
2010 vs . 2009 Sources and Uses Analysis12
2008-2010 Horizontal and Top to bottom Analyses of Income Statement13
2008-2010 Percentage Analyses14
MIRE. Assessment of JetBlue's Technique (Exhibit 6)17
Most Relevant Advantages, Weakness, Opportunities & Threats18
Key Market Success Factors19
Where will be we now? twenty-two
VIII. JetBlue Recent Honours (Exhibit 8)25
To: David Barger (CEO), JetBlue
From: EBA Strategy Talking to Inc.
Synopsis of Technique Assessment and Identification of Strategic Issues
After cautiously analyzing JetBlue's strategy we have found a lot of built-in contradictions, which are discussed in Demonstrate 6. As the current approach of differentiation and keeping low functional costs is a contributing component to total profitability, it will not address the competitive benefits sustainability. Easy product and service bogus, along with highly competitive industry environment, will force JetBlue to continuously search for ways to reduce operational costs and maximize revenue, while keeping the competitive advantage that JetBlue offers capitalized on during the last 10 years. In Exhibit 3 you will find a SWOT analysis, which will summarizes strong points, weaknesses, options and risks that JetBlue will have to talk about. JetBlue's important strength and its particular competitive border, currently lies in product and customer service difference as well as their low charges. The mixture of these three factors continues to be able to meet current market needs and " bring humanity to surroundings travelвЂќ.
Key Strategic Issue, Options and Recommendations for Action
JetBlue's key strategy of maintaining low operational costs through automated processes, use of technology, a fleet, and an efficient workforce is currently getting implemented successfully. Since the current strategy has provided JetBlue with a competitive advantage, it must be continuously enforced; however it does not guarantee the advantage's sustainability. At the moment the key strategic issue for JetBlue is usually sustaining its competitive benefit in the industry. Listed below you will find added options how JetBlue can easily maintain its competitive edge, a lot of which JetBlue has started to put in practice, although should broaden on:
|Option |PRO of Option |CON of Option | | Increase Oil Hedging | Leveraging the gasoline prices can reduce | Diminished fluid may create an operational| | |costs, protect against petrol price unpredictability |threat within an economic downturn. | | |and provide better predictability for future | | | |cash flows. | | |Product & Service Difference |Keep and attract new clients by offering a |Once the success is usually proven it is usually easily | | |differentiated product. |imitated by the various other airlines. | |Strategic Partnerships (with flight companies, |Increase in exposure, advertising, market |Implementation and managing of...
Bibliography: Samadi, Nima. (September 2010). IBISWorld Sector Report 48111b - Domestic Airlines in america. Comprehensive survey outlining the airline industry along with market research.
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