How to increase the profitability of the company and keeping the company working?
Strengths | Weaknesses |
- Customers loyalty
- Lower fares than the industry
- Offers many destinations to their clients
- High revenues
- Develop their own aircraft by their own university.
| - High operating expenses
- High interest expenses
- Low or none profitability to their shareholders.
- The eighth biggest airline with a low market share of 4.2%
- Lack of system and headquarters capacity to respond to situations like the storm.
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Opportunities | Threats |
- Get airplanes with higher fuel efficiency
- Making strategic alliances with other airlines
- Demand growth
- Open up new destinations
- Offering their clients refunds and attendance in case something shows up
| - Rising jet fuel prices
- The emergence of new competitors
- Increase in wages policies
- Change in government policies about participation of foreign companies on local companies’ equity.
- Hostile takeovers.
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- Making strategic alliances with other airlines in order to split the costs and get profits.
Pros | Cons |
- Considerable decrease in our expenses.
- New routes would be opened up easily.
| - They might get the know-how of our service.
- JetBlue would lose its independence.
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- Open up new destination by itself where the fuel is cheaper and closing those routes that generate high operating cost and not big revenues.
Pros | Cons |
- Considerable decrease in our expenses in fuel and wages.
- New routes would let us charge fuel at a lower cost.
| - We might lose clients from the destinations we close.
- It might take a longer time to open up the routes than in an alliance.
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- JetBlue might keep the destinations they have and charge more in their prices and reducing staff that they consider is not useful to reach their goals.
Pros | Cons |
- Considerable decrease in our expenses.
- Because of our clients loyalty and a slightly increase on the prices, revenues will increase.
| - They have one of the most efficient staff in the industry, so they would give their service to the competition.
- They should redesign the responsibilities of the leftovers jobs and it might take time to redesign it properly.
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