JETBLUE AIRWAYS

Presented by: Jamila A. BilaliAline R. MatungwaWendyline G. MbaggaRhobi J. MwitaNeema J. Mushobozi

JetBlue Airways took the air on February 11, 2000 with the inauguration of service between New York City’s. The airline raised and stated service in 20 cities around the country with a fleet of 41 new, environmentally friendly, Airbus A320 aircraft

As of December 31, 2009 JetBlue serves 60 destinations in 21 states (including Puerto Rico), and eleven countries in the Caribbean and Latin America

Jet Blue implemented innovative IT programs such as an Internet booking system. JetBlue installed 36 channels of free DIRECTV programming.

David Neeleman, who had noticed there was a need to change, has found a way to start the Operations of Jet Blue Airways

COMPANY HISTORY AND BACKGROUND

STRENGTHS Low pricing strategy

It allows JetBlue company to grab customers easily. The ability of grabbing customers will then allow them to compete very successfully on the market.

Differentiation of product and services Producing different products and services is an ideal way to conquer your market field to a new lever.

Experienced advisors in this kind of business JetBlue, in its early days, had hired a few extra ordinarily people who were able to distinguish it from the competitors

INTERNAL FACTORS OF STRENGTHS AND WEAKNESSES

WEAKNESSES Lack of Diversification of tests

JetBlue Airways are currently lacking to provide tests / results on availability of products

Lateness of expansionExpansion on time was a lacking weakness on JetBlue Airways side, as Low air fares industry is so demanded, not only for the local market, but also for the consumers from other cities as well

Lack of Forecast managementAn issue of forecasting had been incurred by JetBlue, as they had been trying to converge the crisis faced previously

Cont…...!

OPPORTUNITIES Marketing mix

Marketing mix is also attractive strategy to make higher profit in branch or section of a firm.

Easy purchasing systemJetBlue is aware that crowded areas like complexes and centers for shopping are a main aim for any individual to find any product.

Maintenance of customer’s satisfaction and loyalty Membership cards and invitations are old fashioned.

EXTERNAL FACTORS OF OPPORTUNITIES AND THREATS

THREATS Competition

Many of the businesses confronted nowadays must have competitors in their field of work on production, in this case, offering cheap fares for flights

Financial crisis Internal and external factors must be considered at such times of financial crises

Global economy downstream Global economy downstream is a crucial fact and can be undetectable in a large corporation

Price of OilPrices of oil are controlling any and every aspect of life these days. JetBlue has used the price of oil to measure their price set for customers to pay

Cont…...!

Bargaining power of buyersTo reduce the bargaining power of consumers JetBlue has customer incentives such as TrueBlue.

Bargaining power of suppliers JetBlue has very little threat from suppliers.

Threat of substitute productsSwitching costs among other transportation options are high for everything.

Cont….!

In the TOWS Matrix, we will Use the SWOT analysis to develop strategies by matching strengths with opportunities, using opportunities to reduce weaknesses, using strengths to overcome threats, and reducing weaknesses and avoiding threats.

SWOT/TOWS – MATRICES

TOWS MATRIX

Opportunities Threats

• Marketing Mix

• Easy purchasing system

• Maintenance of customer’s satisfaction and loyalty

• Competitors

• Financial crisis

• Global economy down stream

• Price of oil

Strengths • Low pricing strategy

• Differentiation of product and services

• Early starters in this kind of business

• Using own strategy to promote Marketing Mix

With low price target new customers

Attract potential

customers with easy

shopping system

• Lower prices down to meet standards through financial crisis times.

• Use experience and expertise to beat the potential downstream of economy

Weakness • Lack of Diversification of Products and Services

• Lateness of

Globalization

•Lack of Forecast

management

• Expansion in range of products and services

• Improvement of existing purchasing systems

• If missed, improve satisfaction even if at unexpected times.

• Globalize and Expand business branches.

• Beat financial crisis with extra working hours.

• Change business type throughout financial crisis.

Relationships between strength box and opportunity box can be described as very potential opportunities for the JetBlue: -

◦ By the means of low pricing system

◦ Technology and Information Technology acts as a huge character in the company.

The association between weakness and strengths box, JetBlue will encounter both a negative and positive side: -◦ JetBlue must maximize its usage of

flight Business.

◦ The process of stimulation of overtime work for the employees by creating and issuing them some benefits and incentives.

◦ JetBlue shall not ignore their short run business activities .

FINDINGS

Cont…..! JetBlue must compete and win against their

threats, which are the competitors. They must maximize their utility of their Strengths to overcome their threats by: -◦ Lowering the cost of their shares.

◦ Using promotional strategies (Such as newly designed ticketing) to exhibit the public.

A part of weaknesses and threats is very bad part for any company or corporation Findings about this part can be seen as big investment and should be considered as future expected outcomes.

◦ Working loner during financial crisis or working longer then out close competitors to gain more money more experience to get more customers, so, the cure for the coming crisis can be reduced by working longer the out competitors.

The Wholesaler Retailer CorporationA way to advice JetBlue on how and what to change regarding what to do in near future, which is being able to use the “SWOT”, an analysis and a tool in order to resolve their tribulations.

By observing and supervising domestic streams and striving not to be influenced by changes, which will lead JetBlue to a crucial unmanageable degree.

Implementing changes of hiring new employees that are extraordinarily talented who can provide Knowledge, Skills and Abilities into the corporation.

SOLUTIONS AND RECOMMENDATIONS FOR JETBLUE

QUESTIONS ?

THANK YOU……!