External Environment Analysis

Decent Essays
External Environment Analysis

JetBlue Airways Corporation (JetBlue) is a company that has focused on low-cost airline transportation service. It is also one of the top major airlines dominating the Domestic Airlines industry. To develop a better strategic business plan the company’s external business market and the effect it has on the business continuity plan must be analysis as well as the general, industry, and competitor environments. Another issue affecting companies is the role business ethics plays in gathering competitor intelligence.

External Business Market

The Domestic Airlines industry is affected by key external drivers, such as corporate profit, world price of crude oil, per capita disposable income, inbound trips
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JetBlue needs to develop a plan to deal with its heavy debt load while dealing with the constraints of customers driven by price and route, low brand loyalty, and heavy capital costs.

General Environmental Analysis

The general environmental analysis is a study of six primary factors, which are political/legal, economic, socio-cultural, demographic, technological, and global. This study is essential for JetBlue to compete effectively in the Domestic Airlines industry. By conducting this study JetBlue will have a clear understanding of the elements in society that directly affect the industry.
Political/Legal Factors

The level of regulation for the Domestic Airlines industry is medium, and the trend is steady. The different organizations affecting the industry are the Air Transport Association of America (ATA), Department of Justice, the FAA, the United States Environmental Protection Agency (the EPA), the Transportation Security Administration (TSA), and the US Customs and Border Protection. The many laws and regulations instituted by the United Stated Government that affect the industry directly are the Airport Noise and Capacity Act of 1990 (the ANCA), the International Civil Aviation Organization’s (ICAO) Chapter 4 noise standard, and the Aviation, and Transportation Security Act (ATSA). These laws and regulations affect the cost of airline operations.

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