JetBlue Airways SWOT Analysis Strengths
• Extra Space- JetBlue has many strengths including more comfortable seating. They offer seating with more leg room some seats have 34 inches between the seats, while taller men and women who need the extra leg room can have seats with 38 inches. This is an extra feature that JetBlue offers to their customers. •Advanced Technology and Entertainment-They also offer exciting entertainment. The entertainment includes XM Radio which includes over 100 channels at every seat and it is free. Also there is a TV at every seat with at least 36 Direct TV channels.
JetBlue also offers movies and free wireless internet. •Unique Services in the Airline Industry-When it comes to customer service JetBlue goes above and beyond other major airlines. They offer free unlimited snacks to everyone on the plane, and they are snacks that are name brand. For example, they offer Dunkin Donuts coffee and snacks. •Newer Fleet compared to others- JetBlue also commands a newer fleet compared to the older more established low-cost airlines.
This is an advantage for them because maintaining a newer fleet is less expensive than maintaining an older one.
Weaknesses •Gradual Global and Domestic Expansion-Another weakness is that JetBlue continues to expand, but not at a rapid rate. They only offer flights to 61 cities in the United States and some other countries. Global expansion is also taking place, but at a much slower rate. This is a disadvantage because direct flights save people time and money. •Negative Press- Negative press that JetBlue has received lately is also a weakness.
In May of 2010, a JetBlue pilot threatened to harm himself just hours prior to takeoff.
In August of 2010, flight attendant Steven Slater argued with a passenger, grabbed a beer from the plane, and slid down the emergency exit. In February 2007, passengers on JetBlue 751 were stranded for 8 hours on the tarmac. This sort of press news serves to build a negative perspective of JetBlue that goes against the type of image they are trying to build. •Stock and Volume Decline- When JetBlue started there was not stock for the first few years. From 2003 it began to decline in price. It began to rise in volume, but not in the price.
Since 2007 it has been declining both in price and volume. Opportunities •Low Fare air cost- JetBlue offers low prices on airfare compared to other airlines. Low cost will allow them to continue expanding. As the economy seems to be declining consumers continue to search for the lowest prices on their airfare. In 2009 JetBlue Airlines won an award for the top low cost airline for customer satisfaction by J. D. Power and Associates (http://jetblue. com). •Direct Flights-Introduction of more direct flights could gain JetBlue a competitive advantage.
While they offer services to Houston and Las Vegas, they do not offer a flight (direct or indirect) from Houston to Las Vegas. Expanding on their existing services would allow for them to gain a bigger customer base. •Partnership with Established Airlines- JetBlue has four major airline partners, which are an advantage when it comes to marketing. Customers know, Lufthansa, South African Airways, Air Linqus, Cape Air and trust them. To have them as partners this helps JetBlue to get know around several different parts of the world.
Threats •Price of Fuel-One threat that JetBlue Airways faces along with many other airlines is the constant change in prices of fuel. The price of fuel is a threat because the airlines can not control the price. Many different things affect the prices of fuel like Mother Nature, and the price of oil going up. Today in the Houston area regular fuel prices are about 2. 50 a gallon, but a couple years ago the prices sky rocketed over 3 dollars a gallon, and this is an important factor when determining prices of an airline ticket. Small part of Airline Industry – Southwest Airlines is also a threat they make up 13. 8% of the United States Market Share, compared to JetBlue Airways that makes up 4. 3%. (transtat. bts. gov/) Southwest flights cover more areas and have flights in many more cities.
They have been in business since 1971 so they are not a new company. Southwest has a name that is very well known all over the United States. •Fairly New Firm-A threat of JetBlue is that the company has only been in business since 1999. Compared to Southwest’s 39 ears in business to JetBlue’s 11 this is a weakness because they have not been in business as long and their name is not as established as other larger airline companies.
References: www. transtat. bts. gov/ www. southwest. com http://jetblue. com http://www. foxnews. com/us/2010/09/15/hundreds-pilots-treated-drug-abuse-psychiatric-disorders-review-finds/? test=latestnews http://articles. sun-sentinel. com/2010-09-14/news/sfl-jetblue-flight-attendant-091410-link_1_attendants-jetblue-airways-aircraft http://articles. cnn. com/2007-02-15/travel/passengers. stranded_1_jetblue-flights-passengers-flight-attendants? _s=PM:TRAVEL