JetBlue Case Study Example | Topics and Well Written Essays - 750 words

JetBlue - Case Study Example There are three critical stages in developing the airline industry and they include regulation, liberalization, re-regulation, as well as de-regulation (Vasigh, Fleming, & Mackay, 2010). Major challenges facing this industry are fuel prices, which continue to hike, pollution control, personnel shortages and global economic problems. However, fuel, labor, and maintenance are the most common setbacks in the industry. Proper planning is essential for the success of the company. Failures in air business planning include under capitalization, over expansion, lack of flexibility besides the inability to obtain sustainable and competitive advantage. Failure to demonstrate revenue growth and profitability are also factors that contribute to failure of a business plan (Vasigh, Fleming, & Mackay, 2010). Five forces affect this industry. Firstly, there is rivalry between existing competitors; this is due to the competition for growth as well as market share. There is also the bargaining power o f suppliers caused by the need to access capital and supplier concentration. In addition, there is the bargaining power of buyers, which refers to price sensitivity, substitute products, buyer information, as well as bargaining advantage. Threats of new entrants are another force that is caused by freedom of entry and exit and availability of air crafts. Finally, there are the threats caused by new substitutes like telecommunication, high-speed railroads, as well as video conferencing (Vasigh, Fleming, & Mackay, 2010). Key success factors for the airline industry include factors that help a company achieve its mission, objectives and goals. The key success factors include strong management for each department that is of advantage for the business. Highly qualified and competent work force is also essential for the success of the company. Everything they do must aim at improving customer relation and