Strategy As A Position For The Airline Industry

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Strategy as a Position The airline industry has one of the highest barriers to entry, due to associated investment needed and high competition. For a newcomer, a unique position in relation to the competitive environment has to be established to gain foothold in the market. For JetBlue, their unique position was low-cost and high-frill offerings (Brennan & Morgan, 2007). Strategy as a Perspective JetBlue’s success in the early 2000s from founder David Neeleman’s visions for a better airline. He brought a new perspective to the traditional flying experience. At a time when flights were considered dull, he felt there was a demand in the market for making flying enjoyable. The inclusion of satellite TVs, radios, comfortable seats catered to…show more content…
JetBlue’s strengths include industry leading, and award-winning customer service, and providing many amenities for free, which many competitor airlines provide for an extra fee. These amenities include: brand-name snacks, extra leg-room for passengers and free in-flight TV, Wi-Fi and SiriusXM radio channels. They also have a relatively young fleet of planes, which require less costly repairs than some of the competitors’ older fleets (Dalavagas, 2015). This could also be considered a weakness, because relying on low maintenance costs could hurt the airline in the future when the planes start to break down and those costs were not prepared for. JetBlue has many weaknesses including a dependence fuel prices to determine earnings. This means that when fuel prices are low, the airline reports higher earnings, and vice versa. This is common among all airlines because fuel is one of the largest operating expenses in the industry and its price is determined by forces of an external environment. Though this provides another opportunity for the airline to make a strategic alliance or partnership to develop a more fuel efficient aircraft. This could be a change to the industry that would impact change in many ways. At the present time, financing such an endeavor could prove difficult as JetBlue has about $1.9
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