Jetblue

Porter's Forces for Airline industry

Threat of new Entrants is low due to deregulation and availability of alternate sources of fund.

Low Bargaining Power of Buyers due to large number of customers.

High Bargaining power of suppliers as there are only two suppliers namely Boeing and Airbus.

Threat of substitutes - there are no substitutes for long distance traveling; threat is high for short distance travelers, people prefer to travel by alternate transportation (buses, trains and cars).

High Degree of rivalry as airlines offer competitive prices, similar experiences and have different frequent flying programs to maintain customer loyalty, along with customer service.

Internal Assessment of Jet Blue using Value Chain: The primary forces are:

Inbound logistics - Internet booking has helped Jet Blue in effectively managing ticket sales.

Operations - Efficiency through reduced paperwork, faster turnarounds, higher aircraft utilization, no meals, paperless tickets, maximum manpower utilization, low training cost, etc.

Outbound Logistics - New A320's are larger providing more legroom, fuel-efficient and less maintenance cost. Selection of less congested airports helps quick and on-time flight departure.

Marketing and Sales - Web based booking improves efficiency and eliminates the middle man.

Service - Ensuring better customer service and undertaking various training programs for same.

The secondary forces for value chain analysis are:

Firm infrastructure - Top management coordinates and incorporates activities in value system.

HR