JetBlue Airways Corporation
The Internal Environment of JetBlue Airways Corporation
Abstract
The best way to conduct an internal analysis is to use Michael Porter’s value chain. This chain has primary activities and support activities. They are taught in a generic and must be adapted in order to fit certain industries. Service industries do not produce products for sale. However, the different business activities performed to deliver the final product, service, can be evaluated and placed into the different categories of the value chain. JetBlue Airways is part of the service industry and their business practices must be placed into the value chain in order to conduct an internal analysis of that company. Also, what competitive strategies they use to overcome the completive forces that control the market place must be investigated in order to carry out an internal analysis.
JetBlue Airways Corporation
The Internal Environment of JetBlue Airways Corporation
In the modern business world Michael Porter’s work had been instrumental in establishing guide lines for analyzing business environments. The activities conducted by each company must be examined. The first step is to place JetBlue into the value chain. All value creating activities are part of this chain. The primary activities consist of categories that result in the products or services being produced. These categories are inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities are actions that add value to products or services in an indirect way. However, they are essential and consist of procurement, technology development, human resource management, and general administration. Finally, JetBlues competitive strategy of partnering low cost leadership and differentiation will be considered.
Primary Activities
Inbound logistics: JetBlue using the Internet to book flights instead of
ticketing agents gives the airline more...