Most of JetBlue’s primary competitors including Southwest Airlines and Delta Airlines are larger and have financially very strong and established brand name. Many of the competitors enhanced their services and dropped prices to give tough competition. In addition, there has been a lot of merger and acquisition activity within the industry which caused fares to reduce further putting pressure on revenues and earnings of JetBlue. Geographic Risk: JetBlue when expanding into Latin America is also subjected to high risk. These countries are emerging markets, and face risks due to political and economic instability, underdeveloped legal systems, strike from third party service providers etc.
JetBlue was founded on the history of American aviation, in 1999 with an initial capitalization of $130 million. JetBlue 's strategy was to combine common sense with innovation and technology to "return humanity to air travel". David Needleman founded Jet Blue based on his own experiences and seeking to improve the expectations of his clients, collaborators and associates, thus making the service excellent. . Despite the competition, JetBlue has had ambitious growth plans, focusing particularly on the needs of users who were not satisfied, such as itineraries, high fares and commuters when traveling, among others.
In the early 2000s, The Boeing Company faced many challenges with increasing competition in the commercial aircraft market. To remain competitive, they began the development of their 787 Dreamliner aircraft using an unconventional approach in terms of supply chain management. The historical approach that Boeing used on previous aircraft designs required Boeing to procure raw materials and subassemblies from several different suppliers and manufacture the final assembly in house. Dreamliner sought out to be the first of Boeing 's kind to outsource 70 percent of its major subassemblies under a Partnering for Success initive (5) , leaving Boeing to assemble the final assembly performed in-house. Build airplanes the same way the automobile industry
This allowing investors and analysts who follow Boeing 's stock to imply that they wouldn’t have a problem doing this again. They can also imply the company isn’t going to change and isn’t going to be honest. The company may also lie about other problems within the business which could further hurt investors. Due to this situation investors and analysts could imply that they should start to look for other companies to invest in who have ethical practices and care for others and not just themselves. In conclusion, Boeing’s top management proved to their stakeholders that there number one priority is themselves and that they do not care about those who are investing in their
High Bargaining Power of Seller, as fuel suppliers essentially control the cost spent on each flight, and the only two suppliers of JetBlue (namely Airbus and Boeing) have a wide customer base, which makes JetBlue replaceable. High Threat from Substitutes since there are low switching costs and multiple airline companies available. Low Threat of New Entrants from high costs/capital required for entry, difficulty in differentiating, difficulty in building brand image and loyalty when competing against large airlines. High Rivalry Among Existing Competitors from the numerous existing competitors such as Delta, United, and American
With product innovation strategy, Boeing is forecasting the market trends extremely well after obtaining detailed and accurate knowledge of designing and implementing customer-based needs and demands. The process innovation strategy of Boeing is based on Lean manufacturing policy that includes the efficient use of company’s assets, inventory, and supplier management in achieving high quality and low transaction costs. The key competency of Boeing commercial airplane segment is the capability to put into practice large-scale systems integration in making advanced and technology-based commercial aircrafts (Hitt et al., 2009). Also, Boeing’s operational strength is primarily based on distinctive level of leadership and management in obtaining competitive
Lower cost of flying urged more people to go on travel in a higher frequency and generated more income for entrepreneurs. This further intensified the air-bus market with additional competitors entering and existing firms were reorganizing strategically. Therefore, it was recommended that budget airline acquired another possible competitive edge, other than employing lower price, to establish an unceasing growth. References Fageda, X., Suau-Sanchez, P., & Mason, K. (2014). The evolving low-cost business model: Network implications of fare bundling and connecting flights in Europe.
Top supervisors make decisions for the company. In Boeing, authority trickles down from top to bottom e.g. From CEO, CFO, COO to President & Vice President and from President & Vice President to department heads. RESOURCES: Boeing undertook a series of strategic acquisitions to broaden its portfolio that included McDonnell Douglas, the space and defense business of Rockwell Intl., and Hughes Space & Communications. Due to the nature of the defense industry, Boeing occasionally forms teams with other companies that are competitors e.g.
Marketing as an organizational philosophy has been based on the marketing concept. Choose either (not both) Boeing or Embraer and discuss how they have communicated some of the principles of the marketing concepts in the video. Boeing’s Marketing Position Boeing utilizes several marketing strategies related to the readings for this discussion; examples of four key categories are related to Diversification, Market Mix, Product Development, and Organizational Strategies. These four key terms is what makes Boeing the leader in the aviation industry worldwide. The company’s ability and understanding of their organizational strategy and product development is key to the company’s profitability, if Boeing understands what the customer wants by performing primary and secondary research they can deliver an outstanding product that will allow for higher sales not only with the target delivery customer but future customers worldwide.
Boeing Commercial Airplanes is being the leader in commercial aviation by offering airplanes and services that with characters of superior design, efficiency and value to customers around the world. In1916, William Boeing, had built the company’s first airplane which was a seaplane for two with a range of 320 nautical miles. Since then, Boeing has defined the modern jetliner and introduced the twin-aisle cabin, the glass cockpit and countless other innovation. Moreover, in 1997, the merger of Boeing and McDonnell, gives the company a 70-year heritage of leadership in commercial aviation. Today, Boeing Commercial Airplanes, leads by James (Jim) F. Albaugh, offers a family of technologically advanced airplanes, mainly the 737, 747, 767 and 777 families of airplanes which can seat more than 500 and can boasts the longest range in the world, at more than 9,300 nautical miles.