Question: question: What internal resources and assets does JetBlue have, that may give it a competitive advantage? Critically discuss whether Jet Blue position is supported by
question: What internal resources and assets does JetBlue have, that may give it a competitive advantage? Critically discuss whether Jet Blue position is supported by its value chain and other internal resources. in a one-paragraph around 800 words, paraphrase the content above using the Porters five forces framework; as well as the internal environment analysis; JetBlues resources, assets, value chain that affect its position in the industry
please need to summarize the content bellow in one paragraph of 800 words (10% more or less)
please respect the wordcount and only in one paragraph
Analysis based on Porters 5 forces,
A) Competition in the industry- The first of the five forces refers to the number of competitors and their ability to undercut a company. The larger the number of competitors, along with the number of equivalent products and services they offer, the lesser the power of a company. Suppliers and buyers seek out a company's competition if they are able to offer a better deal or lower prices. Conversely, when competitive rivalry is low, a company has greater power to charge higher prices and set the terms of deals to achieve higher sales and profits. In the case of Jet Blue, the competition will be high as the aviation industry in seeing more competitors coming in. They need to be geared up to challenge the existing providers in the market. For this both technology and workforce has to be developed and be current.
B) Potential of New Entrants Into the Industry - A company's power is also affected by the force of new entrants into its market. The less time and money it costs for a competitor to enter a company's market and be an effective competitor, the more an established company's position could be significantly weakened. An industry with strong barriers to entry is ideal for existing companies within that industry since the company would be able to charge higher prices and negotiate better terms. New entrants come up with new infrastructure which can be a threat to the old technologies which they use. Hence they need assistance not only from the technology used for aviation, but also need to increase the reach of marketing efforts to more people.
C) Power of suppliers - The next factor in the five forces model addresses how easily suppliers can drive up the cost of inputs. It is affected by the number of suppliers of key inputs of a good or service, how unique these inputs are, and how much it would cost a company to switch to another supplier. The fewer suppliers to an industry, the more a company would depend on a supplier. As a result, the supplier has more power and can drive up input costs and push for other advantages in trade. On the other hand, when there are many suppliers or low switching costs between rival suppliers, a company can keep its input costs lower and enhance its profits. Need to make sure to have the righ supplier so that there are no delays and losses caused because of the supplied materials. Both quality and timely delivery needs to be assured.
D) Power of customers - The ability that customers have to drive prices lower or their level of power is one of the five forces. It is affected by how many buyers or customers a company has, how significant each customer is, and how much it would cost a company to find new customers or markets for its output. A smaller and more powerful client base means that each customer has more power to negotiate for lower prices and better deals. A company that has many, smaller, independent customers will have an easier time charging higher prices to increase profitability. This is one area where they need to be extra careful as peoples/customers interest to be generated is the most important factor. For this arranging proper facilities and also attending customer feedback points without much delay are important.
E) Threat of substitute products - The last of the five forces focuses on substitutes. Substitute goods or services that can be used in place of a company's products or services pose a threat. Companies that produce goods or services for which there are no close substitutes will have more power to increase prices and lock in favorable terms. When close substitutes are available, customers will have the option to forgo buying a company's product, and a company's power can be weakened. Being in the field of aviation this is something important but maynot be as high as others.
This maintaining the standards set in the aviation industry and keeping the focus on improvement of technology and also employee standards are key for the growth of JetBlue. This can be achieved by focussed moves from the management of Jetblue.
Jet blue has quite a good amount of internal resources in various forms which shall help to give it a competitive advantage over other companies in similar area in the long run. Possibly the right use of those can lead to Jetblue getting over the current crisis situation in the years to follow. It all depends on the top managements efficiency to design and rightly execute the resources to the best of its use thus bringing in more revenue to the organisation. Major assets it have can be listed as below
Physical: New terminal at JFK, even though this can be an additional expense currently, Jet blue can think of generating more revenue out of this by allowing other airlines to utilise the same and making maximum use of the available terminal.
Employees Employees are always the biggest internal resources of any organisation. It is their efficiency and loyalty that runs the organisation into yielding the rewards of success. Even though there are currently dissatisfied, the efforts by the new CEO Hayes are also appreciable.
Airbus A-320 the choice of it over the Boeing will surely add to the reputation of the airlines. As it is more eco-friendly which is preferred by almost all in the world now, will always keep the likes of the customers towards Jetblue. Moreover Boeing has currently a bad reputation due to its ignorance towards environment and safety. This also can be an added advantage. Moreover A-320s are fuel efficient when compared to others.
Operations making its operations paperless by having everything online is a good initiative to keep it ahead in the long run with respect to other competitors. Inbound logistics - Web-based booking gives greater control on managing seat sales. Customers wont get bumped. Outbound logistics (consolidation of goods, efficient scheduling, finished goods processing) .Marketing and Sales - Web-based ticketing as a distribution channel. Market segment properly identified, i.e., business travelers flying point-to-point. Having effective pricing method is also im-portant.
Improved Service (ability to solicit customer feedback & respond) - Customers need to be informed of changes or inconveniences. The Customer Bill of Rights providing rewards for customers experiencing operational problems, delays or cancellations has helped.
All the above factors look positive for the Jetblue in the long run provided they implement it wisely.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
