JetBlue Using Porters Five Forces - Case Study Example
Nobody downloaded yet
Extract of sample JetBlue Using Porters Five Forces
As the paper highlights, unlike other industries, the airline industry is characterized by high start-up and high running costs, which acts as a barrier to entry. So much is the costs that airlines that make it in the industry either must have been started a bit earlier in order to make it up the competitor ladder in a gradual manner. In addition, so much is the cost that small airlines must be affiliated with large airlines in order to make it in the industry. In order to confirm that the threat of new entrants is minimal, a look at JetBlue shows that success within the industry was not obtained overnight. Instead, the company has gradually moved towards success. The case study also shows that some attempts by some airlines to make it in the same market with Jetblue were not simple. For example, US Airways was one of the five US Airlines that filed bankruptcy in 2006 owing to the drop in revenues and increased costs. The company does not have many suppliers. Only two of them are identifiable. Essentially, this means that the supplier’s bargaining power is high as the company does not have many suppliers to choose from. Apart from airline suppliers, other suppliers include fuel suppliers and the current price of fuel in the industry is high. This again makes the bargaining power of suppliers to be high. Since the airline has prescheduled flights, fuel supply is quite important as it cannot afford to miss any airline. This still confirms that the suppliers’ bargaining power is high and any of their actions can lead to serious consequences on the industry’s part such as low efficiency, which is highly related to fuel supply and cost. Customers within the airline have several airline options to choose from.
This case study declares that one tool that can be used by JetBlue in making informed and accurate decisions is Porter’s Five Forces. The forces were identified with the main aim to analyse industries and their competitors. The forces help in determining the potential strategies that a firm can use…
The firm’s total profitability depends largely on the existence of rivalry in the industry. Market concentration further determines the extent to which rivalry exists in the market. Airports, routes and hub served by numerous carriers can account for intense rivalry in the industry.
Carrefour is a retailer company operating in thirty-two countries and is the largest international food retailer. Its internationalization process has taken a period of 40 years and hence, is rated as a very successful business. The company operates hypermarkets, supermarkets, discount and convenient stores as their main formats of sale.
Competitive forces have been identified as critical determinants of the level of profitability of any business. Experts have highlighted that a business should understand both the nature and the strength of different competitive forces so that it can draw its strategies.
This kind of software was facilitated by the new technology, which really boosted its output and adoption in the world. The company also established a service where people could subscribe to their streaming music from all corners of the world as long as they had internet
The forces help in identification of the power of a business situation. The analysis is used to understand the strength of the firm’s current competitive position and the position’s strength (Boone and David, 45). Strategic analysts of a
cific suppliers), describe each supplier’s overall operation and identify what is supplies; for each supplier group are there many or few; who has power over whom?
2) The main suppliers are TRW Automotive Holdings Corporation and Johnson Controls. TRW Automotive supplies the
The author states that it is evidenced that the company will be on the competitive advantage when it has more of the customer focus and advertisement. This is done uniquely from its competitor so as to beat them. This year, analysts are forecasting earnings increase of 39.81% over last year.
9 pages (2250 words)Essay
Hire a pro to write a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Apply my DISCOUNT
Got a tricky question? Receive an answer from students like you!Try us!
Let us find you another Case Study on topic JetBlue Using Porters Five Forces for FREE!