Jet Blue - Case Study

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JET BLUE - CASE STUDY EBS 5103 STRATEGIC MANAGEMENT Analyzing Strategic Management Cases “JETBLUE AIRWAYS” UFUK CANDAR FOYA BAHÇEŞEHİR UNIVERSITY Table of Contents INTRODUCTION 3 BRIEF SUMMARY 3 ENVIRONMENTAL ANALYSES: 4 VALUE CHAIN ANALYSIS: 10 FINANCIAL ANALYSIS: 13 SWOT ANALYSIS: 19 SPACE MATRIX: 21 TOWS MATRIX: 24 QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM): 25 CONCLUSION: 26 INTRODUCTION Within case analysis assignment, the JetBlue case is analyzed strategically in this document to set answers for following basic questions: * To make a set of recommendations based on the analysis, * To describe exactly what need to be done for success, * To explain why the proposals will…show more content…
ENVIRONMENTAL ANALYSES: a. PESTEL FRAMEWORK: “PESTEL model involves the collection and portrayal of information about external factors which have, or may have, an impact on business.” i. POLITICAL: 1. Deregulation of the US airline industry in 1978 ushered in competition in the hitherto protected industry. Several low-cost, low-fare operators entered the competitive market after the deregulation. 2. Terrorist attacks on the World Trade Center and Pentagon on September 11, 2001 severely affected the airline industry that security concerns and security costs increased. ii. ECONOMICAL: 3. The economic downturn in the late 1990s had severe consequences on the airline industry that the demand for air travel dropped leading decrease in flights and revenues; increase liquidity concerns. 4. Several major airlines filed for bankruptcy. Many airlines significantly decreased their capacity, reduced their routes and postponed purchases of new aircraft. Some airlines reported a 50% reduction in routes and flight frequency. All these events provided opportunities for the low-cost carriers not only to increase the number of flights but also to introduce services on new routes. 5. The low-cost carriers grew from carrying less than 10% of domestic air traffic in 1990s to carrying about 25% in 2003. Rapid growth and increased entries also meant that the market was getting
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