One of the strategies that jet airways is following:
The Strategic Planning For Jet Airways
The purpose of this paper is to evaluate a successful and well-organized strategic planning for airline industry providing Jet Airways strategic plan. Jet Airways is the India’s market leader in airline industries, however has faced increasing competition over the last decade resulting attrition in their market share.
The report begins by analysing the current internal and external environment of Jet Airways. Through strategic evaluation it’s recommended that Jet airways focus on their fundamental service delivery to restore their competitive advantage within the industry. This will require putting into practice a combination of two strategies; a people processes strategy and a strategy focused on technological advancement.
INDEX
Objectives:
Examine the strategic Planning Models for Jet Airways.
Examine Jet Airways internal and external environment.
(1.0) Overview of Jet Airways:
Brussels, Chennai, Delhi, Hyderabad, Kolkata and Pune as focus cities.
In July 2008, Which? magazine ranked Jet Airways as the world’s best long-
making it the second largest airline in India behind Kingfisher Airlines.
Jet Airways also operates two low-cost airlines, namely Jet Lite (formerly Air Sahara) and Jet Airways Connect.
(1.1.1) Corporate Structure:
Mr. Abdulrahman Albusaidy – Group Executive Officer
Mr. Sudheer Raghavan – Chief Commercial Officer
Mr. Gaurang Shetty | Sr. Vice President – Customer Services & Alliances
Capt. Hassan Al-Mousawi | Sr. Vice President-Operations & On Time Performance
Dato K. Jeyakanthan | Sr. Vice President – Engineering Services
Mr. Jay Shelat | Vice President – Cargo
Ms. Monica Chopra | Company Secretary & Sr. General Manager – Legal
(2.0) Environmental Analysis:
For success within the airline industry, an awareness of the external environment is essential. This section aims to highlight the position of the industry, in particular looking at competitors and assessing Jet airways capability to meet current and future challenges.
(2.1) PESTEL Analysis Of Jet Airways:
Open sky policy.
FDI Limits: 100% Greenfield airport
The income level is rising.
Contribution to the Indian economy.
Social Effects
Developing of the cities to better services and airports.
Modernization of aircrafts.
The growth of e-commerce and e-ticketing.
There is an increase in the global warming.
The sudden change and the unexpected behaviour of the climate and to depend on the atmosphere.
Bilateral treaties.
Airlines acquisitions and the leasing cost.
(2.2) SWOT Analysis Of Jet Airways:
Only private airline with international operation .
They have a strong brand value and their reputation is very high in the mind of the customers.
Loosing domestic market share .
Old fleet with average age around 4.79 years.
Untapped air cargo market .
Scope in international service and tourism.
Overseas market competition.
Infrastructure issues.
(3.0) Strategic Planning Model:
(3.1) Porter’s Five Forces Model Of Jet Airways:
(1) The threat of the entry of new competitors:
(2) The intensity of the competitive rivalry:
The intensity of the competitive rivalry is high for Jet Airways. Jet Airways has many competitive rivals like Kingfisher Airlines, British Airways, Air India, Virgin Atlantic, etc. Jet Airways has both long haul flights and short haul flights. They are losing the domestic share market so in this competitive industry they have to bring some innovation in their business. Their strategy is very powerful because they are concentrating more in the service quality. Their aircrafts are modernised and they have the modernised technology like CAT3 and ILS.
(3) The threat of substitute products or services:
The threat of substitute for Jet Airways is low. There are few substitutes for Jet Airways:
(4) The bargaining power of customers (buyers):
(5) The bargaining power of suppliers:
(4.0) Managing Risk:
Every business faces risks that could present threats to its success.
Risk is defined as the probability of an event and its consequences. Risk management is the practice of using processes, methods and tools for managing these risks.
financial, for example non-payment by a customer or increased interest charges on a business loan.
operational, for example the breakdown or theft of key equipment.
(4.1) Managing Risk Of Jet Airways:
Strategic and Operational Risk:
Strategies in IVR risk control.
The way forward in risk management.
(5.0) Strategy and Ethics of JET AIRWAYS:
Strategy of Jet Airways:
One of the strategies that Jet Airways is following:
Jet Airways strategy: removing a row to gain passenger space
Says Gaurang Shetty, vice- president, marketing, Jet Airways: “We wanted to create an impact and effectively communicate that we have removed a row of seats from our domestic flights, thereby giving more space on our domestic flights. The outdoor innovation has only been done in Mumbai considering the restrictions on the same in other metros. We would be communicating through hoardings in Delhi, Chennai, Kolkata and Bangalore.”
Sanjeev Hajela, president, Primesite, says the campaign has a budget of Rs55-60 lakh. Jet is a large user of outdoor media and is believed to spend as much as Rs10-Rs12 crore a year, some 20% of the airline’s marketing spend. Jet Airways was one of the early entrants in the aviation business, as also the first private airline to fly to overseas destinations and had a relatively simple creative message: “Jet Flies to 44 Domestic and 8 International Destinations”.
2) Ethics of Jet Airways:
(6.0) Strategic and Operational Conflict:
Strategic Planning:
Affect widely.
Generic.
Operational Planning:
Within org’s. People.
Strategic v Operational Conflict:
Jet Airways has some strategic v operational conflict and they are:
Alternate Arrangements:
(7.0) Recommendations:
So from this, we have conclude that Jet Airways is focusing on the services which they are giving to the customer’s to gain their loyalty and trust and to become the world’s no.1 airline industry.
Due to lack of primary research we can’t access more information about the company.
