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The Competitive Nature of Current Industries

Due to the current trend of globalization, industries of all sectors are becoming more and more competitive. Rivalry between firms is determined by the industries´ competitive structure which again is determined by globalization and the fact that leading economies are stagnating or show very little growth. This reflects on consumer expenditure as the end consumer is left with less money to spend, thus affecting choices made and at the end of the day also effecting firms who are confronted with a weaker demand condition. An industry like the airline industry serves as a good example as to how intensive competition can develop; Especially in Europe, which has seen a rapid growth in the low cost carrier sector, established airlines are…

Strategic Analysis of Jet Blue Airlines

Executive Summary JetBlue is a company built on a focus strategy of low-priced, no-hassle ticketing and refreshingly efficient customer service. The company began with the goal to eliminate many of the complexities and asininities of commercial air travel and set a new standard for customer service. Thus far the company has flown beyond these goals and everyone’s expectations while returning a handsome profit to whomever chooses to invest in this airline industry success. From his humble beginnings as a University of Utah drop-out, CEO David Neelman shorlty became a self-taught airline industry guru – gaining a comprehensive understanding of the inner workings of the industry as the co-founder of WestJet, CEO of Open Skies and President of Morris Air. His…

PEST Analysis Of AirAsias

1.1Background AirAsia was set up by Dato’ Tony Fernandes in 2001. In December 2001, Fernandes and his partners set up Tune Air Sdn Bhd (Tune Air), an airline holding company then bought over AirAsia. Now, AirAsia has become one of the most successful airlines in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia. The leading low fare airline in the Asia – AirAsia has been expanding rapidly since 2001, to become an award winning and the largest low cost carrier in Asia. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand…

Delta Airlines

Delta Air Lines is one of the top five domestic airlines in the United States, and amongst the top 20 in the world today. The key to Delta being so successful today is their focus on human relations (Anthony, Kacmar, & Parrewé, 2010). An agricultural extension agent by the name of C.E. Woolman founded Delta. Mr. Woolman was not a financier, so Delta has not historically relied on financial strategies to create competitive advantage (Anthony, Kacmar, & Parrewé, 2010). Delta has had the fewest number of customer complaints of any major carrier for 20 years straight. This excellent customer service could be partial due to the fact that Delta was strongly committed to its employees. With loyal employees and excellent…

Jet Etihad Deal Analysis

Jet-Etihad deal On April 24 Jet Airways and Etihad signed the strategic alliance. The Etihad agrees to buy a 24% stake in the Jet for about Rs 2,060 crore. It is the biggest deal in Indian aviation sector. On May 24, Jet shareholders approved the stake sale. The airline deferred its resolution to amend the company’s articles of association. However the deal is facing hurdles with share holders and even Securities and Exchange Board of India (Sebi) and Foreign Investment Promotion Board (FIPB) of India raising concerns over “substantial rights” being accorded to Etihad Airways. The FIPB has deferred granting sanction to the proposal until the issues regarding control are addressed. The Jet Airways-Etihad share holder agreement is likely to…

JetBlue Airways & Organizational Development: Partners for Change

This is a case of an effective partnership of Jet Blue Airways and Organizational Development. In the airline business with an unpredictable environment, Jet blue forged a partnership with the Organizational Development (OD) team and JetBlue University (the airlines centralized learning group). From this berthed the Systems Operations Center (SOC) which is the heart of the airline – the epicenter where effective decision making, communication, teamwork, and leadership are critical to ensure crewmembers are able to meet and exceed customer needs (Dennnison, 2007). This case study covers the four general models of planned change which are entering and contracting; diagnosis; planning and implementing; and evaluating and institutionalizing change (Cummings & Worley, 2009). All interventions applied were carefully developed as they…