External and Internal Environmental Analysis JetBlue

1133 words 5 pages
External and Internal Environmental Analysis
STR/581

JetBlue Environmental Analysis External and internal environmental analysis is a critical component for an organization seeking to achieve its goals. The follow information within this paper presents a complete external environmental and an internal competitive environmental scan for JetBlue Airways. The information provided identifies and analyzes the most important external environmental factor in the remote, industry, and external operating environments. When addressing external environment it speaks to a set of forces and conditions outside the organization that can influence its performance. The most common forces include political, economic, social,
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The weakness can be strengthened with expanding their location/market base.
Competitive Position Major players in the U.S. airline industry include Delta Air Lines, United Continental, American Airlines, Southwest Airlines, and JetBlue Airways. In 2013 many consolidations reduced the number of top players, such as U.S. Airways with American West, Northwest with Delta, United with Continental, AirTrans with Southwest, and American with U.S. Airways. Those carries, including JetBlue and Alaska, account for more than 90% of the U.S. market share (Cederholm, 2013). With the number of competitors in times of low or moderate industry growth, the competition increases as each one tries to woo the consumer base. JetBlue is still the new kid so it is hard to say if its resources are inimitable. JetBlue’s low cost operations are interrelated to other activities in the organization like human resource management and technology development. If JetBlue were to reinforce competencies, with its efficient low-cost operations, it can find a sustainable competitive advantage making it a non-imitable organization. JetBlue’s competitive advantage is built off of differentiation and cost leadership. Differentiation comes with a strong brand image. JetBlue provides this image through its customer service and various in-flight features such as increased legroom and entertainment options per seat.

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