Porter 5 forces for JetBlue Airway Essay

Potential Competitors Low Rivalry among existing firms is intense, which expunge the profits to be embarrassed. Its unattractive to the potential competitors. elevated initial investments and fixed costs such as lease a go past of safe and reliable aircraft, negotiate actorable gate access and landing place fees as well as high labor and fuel costs. there atomic number 18 the price competitions in the airline patience, which some major airlines adjure the low-price fares that is very difficult for new entrants to gain enough profit to preserve the investment and fix cost in this industry.Rivalry among Existing Firms gamy Currently, there are many major airlines such as Delta, linked and American that exist in the same commercialise as cat valium Blue.Those airline companies grow used similar strategies as JetBlue. United and American Airline flies to the same cities as Jet Blue and raise to the business travelers who oblige the least sensitivity on price. Airline ind ustry is extremely sensitive to economic cycles. Mature industry life cycle.The negociate federal agency of Buyers spiritualist to High Internet gives the power to the customers to search for the low fares. Leisure travelers who are not sensitive with the price and most of them are loyalty to the particular industry that expand the best service and offer the best flying experience. There are many airlines in the market that offers the same flying experience in the low-price.Bargaining Power of Suppliers High Boeing and Airbus are the only two suppliers of new aircraft for commercial passenger airlines. This allows them to have power of suppliers in the airline industry. Airline workers are unionized, which let them have power of labor supply. OPEC countries have the significant impact for airline industry. The reason is that the fuel is another substantial input cost for airlines, ranging from about 8% to 10% of receiptss. Currently, the fuel for the aircraft are rising then the affect from inunct price increasing push some airline companies to loss revenue in year 2005 such as Delta and Jet Blue.Substitute Products Medium For short flight, the substitute could be the railcar. Faxes, teleconferencing and videoconferencing can substitute change of location by plane for business travelers. Switching cost for customers from airplane to automobile and other technologies save the money for a lot of travelers.Relative Power of Other Stakeholders Internal Revenue Service has just published the gas pedal mileage deduction rate for 2006. It is 44.5 cents a mile. Thats down from 48.5 cents a mile for the last four months of 2005, which reflected a special adjustment for rising gasoline prices Long Beach communities files charges against airlines for noise violations. Customers file against Jet Blue for display the passengers data to the third party.