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Global Strategic Management Case Study: Ablier Airlines: Challenges Awod

Satisfactory Essays

JETBLUE AIRWAYS: CHALLENGES AHEAD
Case Study: Global Strategic Management

Table of Contents

1. SUMMARY 2
2. ANALYSIS 2
1) INDUSTRY ENVIRONMENT ANALYSIS 2
I. PESTELE 2
II. PORTER'S 5 FORCES MODEL 3
2) ANALYZE THE INTERNAL ENVIRONMENT OF JETBLUE 4
I. VALUE CHAIN ANALSIS 5
II. VRIO ANALYSIS 6
3) FINANCIAL ANALYSIS 6
3. RECOMMENDATIONS 8
1) MARKET DEVELOPMENT: FLYING INTERNATIONALLY 9
2) MARKET PENETRATION: INCREASE ADVERTISING AND EXPAND TO OTHER MEDIA 10
3) RELATED DIVERSIFICATION: BUILD PARTNERSHIP TRAVEL WEBSITE 10
4) PRIORITY WISE IMPLEMENTATION OF STRATEGIES: 10
5) IMPLICATIONS 11
1) REPUTATION OF COST LEADERSHIP INTERNATIONALLY 11
2) CONSOLIDATION IN AIR TRAVEL INDUSTRY 11
3) INCREASE IN CONNECTIVITY AND AIR TRAVEL 11 …show more content…

VALUE CHAIN ANALSIS

Primary:
Inbound logistics • Online booking gave greater control on management of seat sales as compared to ticketing through agents
Operations • Paperless cockpit
• Paperless ticketing
• Single aircraft type reduces training costs and usage of manpower

Outbound logistics
• The new A320s are more spacious and fuel efficient
• On time departures
Marketing and Sales • Online ticketing as an efficient distribution channel
• Fair pricing/ effective pricing
• Market segmentation
Service • Constant touch with customers
• Refund customer for inconvenience
• First hand customer feedback
• Invest in trainings
Secondary:
Procurement • Well-made procurement plan with support
Technology development. • Investment in technology
• Process innovation like online-ticketing, paperless cockpit, automation in baggage handling

Human resource management • Reward systems like ESOPs, profit-sharing
• Innovative recruitment polices
• Culture promotion
• Non-unionised workforce
General Administration • Top management, …show more content…

Extending flights to major hubs in Europe to use that as start off for flights heading to Asia and China etc. to mitigate risk of losing customers as a result of unplanned delays.

Question: Finally, while unions are prevalent at every other airline, how can JetBlue maintain an environment where employees remain committed, dedicated and satisfied?
As indicated that employees working with JetBlue is not unionized and majority consists of them working on lower level which forms a strength for JetBlue being the fact they are highly trained and offer better customer service. Also after the attack of 9/11 security concerns on airport have increased to create trust among the passengers.
JetBlue should think of increasing their fares marginally so that they are still the lowest –priced competitor in market but can make more money in order to pay more for better security at airports and better pay/benefits for employees so that stay as the same and don’t go on strikes. Rise in fare prices will also help counter the pressure on operating expense caused by increase in the rise fuel price in the recent years.

2) MARKET PENETRATION: INCREASE ADVERTISING AND EXPAND TO OTHER

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