Business Strategy of JetBlue Airlines EFE

Technology and the internet in business

Technology and the internet have been critical tools in transacting business in the internet age that we are living today which positions this factor as one of the highly ranked opportunities in EFE matrix. As such, many businesses have revolutionized their way of doing business to fit with the current age. The mode of doing business through the internet or rather through online platforms has simplified business and added more convenience to customers who have seen many companies such as JetBlue airlines invest in such platforms to leverage their profitability. Development of internet and technology (such as data analytics) will easily and continually enable JetBlue Airlines to understand the diverse needs of customers.

Stability of cash flow

Stability of cash flow is key in the ability of the business to exploit the available opportunities. For this reason, the stability of cash flow is one of the highly rated external opportunities in the EFE matrix. Stability in cash flow opens up opportunities for investment in diverse product segments which present JetBlue airlines with a great investment diversification opportunity to other product lines (Park & Jang, 2013). By exploiting this opportunity, JETBLUE AIRLINES will be able to expand its revenue model and sharpen its competitiveness through a variety of products or brands.

Change in consumer behavior

The consumer behavior is dynamic, and their tastes and preferences change with times. Consequently, change in consumer behavior is an opportunity to JETBLUE AIRLINES as a change in consumer behavior more likely means opening up of a new market opportunity which would largely leverage the revenue and profitability of the company.

This factor has the lowest rating in the External Factor Analysis matrix as in most cases it takes longer times to realize a significant change in consumer behavior, and therefore the company can still rely on its existing products or brands with minor modifications or change in product attributes for longer periods.

External Threats

Technology development

Today, many firms are highly threatened by technology due to its rapid growth and its cost of adoption into the business operations. Meanwhile, survival in the current business landscape means businesses are aligning themselves with the technological environment to prevent being edged out by their competitors as well as being phased out by technology (Loorbach & Rotmans, 2006). Survival in this business landscape, therefore, will require JETBLUE AIRLINES to recognize the value and importance of the new technology in its product development, market development, and its operations. This defines the reason as to why technology development is the highly rated threat exposed to JETBLUE AIRLINES.

Currency fluctuations

Currency fluctuations bring about currency instability or rather volatility which in many cases caused by the volatile political environment in different countries in the world (Scharpf, 2015). Businesses operating across countries victimized by unstable political environment more likely suffer the effects of currency fluctuations. As matter of fact, JETBLUE AIRLINES is not excluded from this risk exposure which threatens its profitability due to its global operations. Surviving such a risk needs the company to have an expert risk management team which understands global market operations and international finance to minimize or prevent risk exposure. This factor is rated high as well as JETBLUE AIRLINES operates globally which makes it hard for it to prevent this risk exposure.

Change in environmental regulations

Environmental regulations advocating for very low emissions below the recommended standard international emissions threaten the growth of the company in some of its product categories (Iyer et al, 2015). Adjusting for compliance with such laws is costly regarding research and development and process modification. Many countries are continually tightening the environmental policies which make this factor to be highly rated in the threats facing JETBLUE AIRLINES.

References

Iyer, G. C., Edmonds, J. A., Fawcett, A. A., Hultman, N. E., Alsalam, J., Asrar, G. R., ... & Kyle, P. (2015). The contribution of Paris to limit global warming to 2 C. Environmental Research Letters.

Loorbach, D., & Rotmans, J. (2006). Managing transitions for sustainable development. Understanding industrial transformation.

Park, K., & Jang, S. S. (2013). Capital structure, free cash flow, diversification and firm performance: A holistic analysis. International Journal of Hospitality Management, 33, 51-63.

Scharpf, F. W. (2015). Political legitimacy in a non-optimal currency area. Democratic politics in a European union under stress.