JetBlue Airways Case

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JetBlue Airways Case 04-75-498-01 Submitted To: Professor T. Mao November 15, 2013 Dustin Barnier 103168582 David Gudalj 103450148 Christina Longo 103141910 Audrey Xue Weng 103699389 Table of Contents Problem Identification 1 External Analysis PESTLE Analysis 1 Industry Analysis 2 Porters Five Forces Analysis 2 Market Analysis 3 Key Success Factors 3 Internal Analysis VRINE Analysis 4 Value Chain Analysis 4 Financial Analysis 5 Alternatives for JetBlue Alternative 1: Stop buying airplanes 6 Alternative 2: Scrap the A320 6 Alternative 3: Scrap the E190 6 Decision Criteria 6…show more content…
and it is divided into three segments, legacy carriers, low cost carriers, and regional airlines. These segments serve each of the divisions depending on the distance of the flight and the amount of passengers that can fit on the plane. This industry is a very competitive one and has been proven hard to turn a profit for most companies. Life Cycle: JetBlue, founded in 1999, achieved major airline status in 2004 by exceeding one billion dollars in revenue. JetBlue was also able to achieve the status of the ninth largest passenger carrier in the United States in 2005. JetBlue is currently in the mature stage their life cycle but they have several opportunities for future growth. Mark Powers, the senior vice president, was quoted saying that if JetBlue keeps on the same path of acquiring airplanes in bulk they will grow themselves to death. Competitors: As aforementioned the commercial airline industry is segmented into three types of carriers. Legacy carriers are the best known airlines in the U.S. and they got their name due to their long histories, some dating back to the 1920’s. These carriers also had a specific characterization called the hub and spoke system where these companies would have large hubs at specific airports where lots of their customers would catch connecting flight (spokes). Some examples of legacy airlines are United Airlines, American Airlines, and Delta Airlines. Low cost carriers, such as Southwest Airlines, operated by directly

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