JetBlue Airlines Case Analysis

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JETBLUE AIRLINES 1JetBlue Airlines Case xAnalysisStudent's NameInstitutionCourse NameInstructorDate

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JETBLUE AIRLINES 2Executive SummaryThis essay entails an analysis of a case study of JetBlue airlines using key concepts. Theessay uses Mullins framework to analyze the company. It highlights the market attractivenessfrom a macro-level perspective. In terms of benefits of market segment, the analysis focuses onthe kind of consumers that the company is focused on. In of industry attractiveness. Porter's 5-forces has been used to determine the external forces that may impact the company. As part ofinternal analysis, the essay also highlights different components of JetBlue's sustainableadvantage and uses VRIO analysis to assess the ability of these components to provide acompetitive advantage, looking at both merits and demerits. Other aspects of Mullin's frameworkdiscussed include mission, aspirations, & propensity for risk, ability to execute on CriticalSuccess Factors, and connectedness up, down and across value chain. Again, PESTLE analysishas been used to determine the key market forces impacting JetBlue. Finally, the essay highlightsthe key resources, internal resources, customer segments, and cost structure among other factorsusing a Business Model Canvas.

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JETBLUE AIRLINES 3Mullin's model framework for JetBlueMarket attractivenessMarket attractiveness is studied here from a macro (global) viewpoint The company needto consider the market as a whole; the number of regular customers, the amount of money beingmade, and annual sales. Next consideration is given to market tendencies: has there beenexpansion during the recent years? If ±at’s the case, how sustainable is this expansion? Makingsure the market is big enough to support the expansion being sought is the first step towardgrowing the business successfully [ CITATION Sha23 1 1033 ]. Because of the high averagefares in large metropolitan regions and underserved markets, JetBlue initially focused on servingthose areas. JetBlue has found it difficult to keep its appeal to customers in the face ofintensifying competition. Costs were reduced byradding more seats to JetBlue’s A320 aircraft,but the airline's appeal to passengers and the quality of the flying experience suffered as a result.Market segment benefits and attractivenessIn all likelihood, not all consumers will find what they're looking for in JetBlue’s newbusiness. Focusing on satisfying the wants of a certain subset of the market increases thelikelihood of a product's commercial success (Shaiq, 2023). This subset of the market can befound by doing a detailed analysis of market niches. JetBlue’s objective was to "bring humanityback to air travel' by offering superior service to passengers flying between specific cities.Because of this companyr’s emphasis on its clients' satisfaction, it has been able to attract a nicheof the market prepared to pay more for superior service. JetBlue has had a hard time keeping thisdemographic interested due to the declining quality of the flying experience.Industry attractiveness and micro level

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JETBLUE AIRLINES 4Mullins proposes considering the influence of Porter's Five Forces on rhe industry'sprofitability. JetBlue filled a need for customers who wanted an alternative to both full-servicenetwork and ultra-low-cost air carriers. JetBlue has found it challenging to retain its industryattractiveness in the face of rising competition and a general degradation in the quality of theflying experience.Porter's 5-ForcesCompetitive Rivalry: JetBlue face stiff competition from other airlines in the industry’such asDelta Airlines, and American airlines among others which are full-service. The industry is highlycompetitive and JetBlue face pressure to distinguish itself by finding ways of improving itsquality and pricing.Threat of New Entrants: Risk of New Entrants: It is difficult to enter the airline business due tothe high costs involved e.g. purchasing, new aircrafts. JetBlue, which is an already’establishedairline, can still shake up the industry and put pressure on new entrants.Threat of Substitutes: Flying faces competition from other modes of transportation, such asdriving., taking a bus, or even using video chat software. Because of these alternatives, airlinesare under more pressure than ever to provide a compelling value proposition.Bargaining Power of Customers: Consumers can easily transfer to a different airline if they areunhappy with the pricing or services theyrare receiving, giving them significant negotiatingpower in the airline sector. This increases the stakes for JetBlue to provide a superior service at areasonable price.

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