Swot Analysis of Jet Blue

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SWOT ANALYSIS
Strengths
JetBlue find its strength from the following:

Strong Brand
JetBlue is considered as a strong brand widely known among the people of US. JetBlue was named the number one U.S. domestic airline by Coned Nast Traveler magazine’s “Readers’ Choice Awards” for the six years in a row. This further strengthen people’s trust to JetBlue and improves the company’s brand name and credibility among its clients and competitors.

Unique flying experience
JetBlue offers a new flying experience but at a very low cost. They adhere to their company’s goal belief which is bringing “Humanity Back to Air travel”. It follows the low cost strategy of Southwest Airlines but differentiate itself by facilitating customer with entertainment
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Thus, they will probably resort to another borrowing to cover for this deficit. Acid-test ratio also tells us the same thing. Considering cash and other receivables, it is still insufficient to cover its liabilities. For every peso of liabilities, JetBlue’s cash and receivables can only cover 0.61 in 2000 and 0.71 in 2001.

Low Profitability
Net Income Margin of JetBlue shows low level of profitability. Following the standard, it should amount to at least 18%-20%. However, through profitability ratios, although earning profits, JetBlue have not met the conservative percentage of net income margin. It only has 11.02% net income margin in 2001. We should remember that we should not only focus on profitability per se but on improving its value to stakeholders.

Opportunities

Improving Sales in New York City
Since JetBlue has already tapped the market in New York City, it can capitalized on this market by improving its marketing strategies to increase sales. It should maximized the concentrated population and relative large number of travellers in the City.

New Market
JetBlue can also consider tapping new markets such as expanding to other US states and even other countries that has high level of travellers or with high demand for airline services. They can also increase number of flights to cater for more customers.

Other services
JetBlue can also include additional services on their air travel. They can provide tour

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