Swot Analysis : Jetblue And Westjet

JetBlue is a pro at utilizing its resources and structure. As such, JetBlue has proven to be efficient in its internal environment. Out of the physical and human aspects of the internal environment JetBlue focuses on human as the key factor. JetBlue views its employees and their skills as the key to a successful structure by emphasizing elements of loyalty, satisfaction, service quality, productivity, capability, and output quality. JetBlue reflects a culture of employees that understand how to retain customers and can perform under various situations with an equally varied consumer base. In addition to human capital, JetBlue uses physical assets to set them apart from the rest. The airline fleet of JetBlue is very precisely selected. From its new Airbus A321 to its Airbus 320, JetBlue prides itself on comfort and luxury. Other perks offered by JetBlue include lower priced airfare compared to that of its competitors and in-flight entertainment options that succeed its competition. Internal weaknesses include a

As a company, WestJet does not show a lot of weaknesses. However,the lack of international and Trans-Continental flights in the world of rapidly rising economies, international business and marketscould be count as a weakness. Customers may not be provided with the international destination they are looking for and could be turned to competing airlines. When higher-class travellers are looking to fly with some added comfort and special service, WestJet does not provide any sort of first class seating which can be a factor of lost business. However, December 2012 WestJet launched“premium economy” class flights program, which is designed to satisfy particular customer’s demands with extra legroom and services. Travelers have also dissatisfied with the fact of lack ofseats for larger passengers, becauseWestJet airplane’s seats aren’t big enough. Moreover, some passengers do not agree with the complimentary snacks only being served on flights two or more hours in length. In addition, Due to small crafts WestJet may become a victim of stereotype of low-cost, low-fare, and short-haul scheduled air carrier only.

WestJet develop their IT operation early and force them get the lead in the aviation businesses. However, as the global economic and the change of people’s demand, the strategic plan of WestJet need to be change to follow the change of the world. Compare with other aviation business, the IT structure of WestJet is small and keeps running on their pervious operation before Smith join into the organization. There are some risks coming out if WestJet continue these IT operations.

WestJet is facing an urgent problem. The pilots’ contract expires in two weeks’ time and the pilots are unhappy with the offer that has been presented. This has created conflict between management and the pilots as the pilots feel that too many things are being taken away. If a quick agreement is not reached, flights would be grounded, which would impact the bottom line and negatively affect culture. A collaborating approach will need to be applied in order to come to a swift resolution.

Westjet Airlines has achieved considerable success in the past few years, winning estimable rewards related to its service, gaining loyal customers and, of course, increasing market shares. It devotes to a “high-value, low-fare airline” which provides humanized services to customers. Another pride of Westjet is its IT, which designs all systems in-house and is operated based on the business demands.

JetBlue has been one of the most successful airlines since it first entered the industry in December of 1999. Founder, David Neeleman, set out to succeed by offering low-cost air travel in hopes of perpetuating his services to as many people as he could across the US. He was very adamant about having a very customer oriented business that catered to the needs of all. In doing so he wanted to emphatically promote his obligation to safety, caring, integrity, passion, while allowing the customers to have fun while traveling. There motto helps portray Neeleman’s belief stating “You Above All”. His primary goals had been to follow Southwest’s objectives of offering low rates to customers, focusing on customer’s needs and comforts while distinguishing itself with their amenities. Neeleman’s other goal was to establish his low-cost leadership strategy by concentrating his airline in a large popular metropolitan area that already is already correlated with high airfare (Peterson, 2004). He then began operating based out of the New York metropolitan area at John F. Kennedy International airport with his secondary locations in Washington D.C., Boston and Los Angeles.

To formulate a strategy that will help Southwest Airlines maintain its competitive edge in the US airline industry.

Jet-blue Airways is American low cost airline head quartered near New-York city. It’s foundedin August 1998 by David Neeleman with Joel Peterson as a chairman and David Barger as apresident and CEO. By late 2006,like some other airlines, JetBlue faced some softening demand and high cost due to the increase in fuel prices. Barger realizes that JetBlue needs to take further steps to slow its rate of growth. Barger was not sure about the reductions across E190 and A320. The E190 showedpromising growth opportunities and challenges for JetBlue. At the same time, the A320 wasconsidered as proven plane that had succeededover past 6 years. Most of the airline industries were using hub-and-spoke system and point-to-point services. Due to this service, South West Airlines showed consistent profits. After September 11th, the airline industry experienced trouble due to attack. Looking at the history of Jet-blue, it started with just 10airplanes in 2000 and by 2011 the company planned to have 290 planes in service. To support customers, Jet Blueprovided

JetBlue is known as the airline that promises, and also delivers. JetBlue delivers Air flight of the future, with new jets and the lowest fares available. JetBlue has proved to the world that one can have it all. JetBlue’s Airways started in 2000 with the mission as stated by the founder Neeleman: “to bring humanity back to air travel by offering passengers low fares, friendly service, and high-quality product” (Ford, 2004, p.139). JetBlue has five core values that they operate by on a daily basis, which includes, safety, caring, integrity, passion and fun. JetBlue continues to adapt to the changing environment, and its community by evaluating the risks and

There are two major strategic issues facing JetBlue. The first is that the company is growing very rapidly. This brings with it a number of critical challenges, such as recruitment and selection, maintaining the corporate culture, and maintaining high service levels. Secondary goals associated with this are maintaining safety standards, finding profitable routes to occupy and avoiding a unionization drive. Growing a company this rapidly is possible given the strong initial financing that the company has, but challenging in that the faster the airline grows, the more difficult it will be to find the right people and the right routes. The company can grow rapidly while plucking the low-hanging fruit but these tasks become more difficult over time.

US Airways completed a merger in December 2013 . This merger provided much needed cash infusion into American Airlines, enabling it to emergency from

JetBlue took precautions by employing extra call center representatives and creating a backup website. Allowing them to keep customers happy, unlike WestJet which had to write apology letters and give customer flight credits (Marakas and O’Brien, 2012, Pg.563).

JetBlue was innovative in leveraging latest technologies. It sells only electronic tickets, reducing paper, postage and processing expenses. In addition, it sells tickets only through its own website, the only low-cost distribution channel available. JetBlue operated “Open Skies” software to handle Electronic ticketing, Internet booking and Revenue Management. It costs 25cents per e-ticket as compared to $25 to process a paper ticket. JetBlue’s website was responsible for 75% of ticket sales. Since it did not go through other online reservation systems like Expedia and Orbitz, it saved money on booking

WestJet faced problems in transferring files containing data on transactions for customers who had already purchased their tickets before the system upgrade. They could not access the passenger bookings and this caused delays because it took time to transfer the files. Another problem they faced was angry customers who flooded their site and

Because what JetBlue did was stop thinking about looking right customers for their business, this way they devoted himself to transform the company to focus on its customers, so used all the basics of marketing which seeks that customers have an important value in the company so that they can better understand consumers and achieve satisfy in the best way, this is the ideology that drives this company, the most important thing for them is that the customer are happy with JetBlue and does not change the company for any reason, and then for the next plans they came back.