Jet final.pptx

7/27/2019 Jet final.pptx

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Prepared By:

Prashant Abitkar(1)

Swati GokhleIshan Kelvalkar(71)

Vitthal

Ankita Mistry(93)

Anis Madraswala(115)

Shruti Satam


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Introduction

Started by Naresh Goyal as Air Taxi Operator in April 1992

Started Indian commercial airline operations on 5 May 1993with a fleet of four leased Boeing 737-300 aircraft

Scheduled airline status was granted on 4 January 1995

Initial investment of US$10 million

100%of its share controlled by Naresh Goyal

Jets parent company, Tail Winds Ltd.

Began international operations to Sri Lanka in March 2004.

Jet, is headquarters in Mumbai, India


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Current Service Offerings

Jet Privilege

JPMiles The number of Base JPMiles earned is the directtravelled distance between the origin and destination city-pair.JPMiles earned are based on the fare and cabin travelled.

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Blue Silver Platinum

GoldBlue Plus


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On-board Services

Check-In options

Airport lounges

Bus Services

Cuisines

Entertainment

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SWOT ANALYSIS

Strengths largest market share high reputation and a strong brand image operates over 400 flights reaching 76 destinations

across the world Gained unshakable trust among Indian flyers byregistering 91.8% on-time performance The debt recovery plan and the rebranding exercise

has added new hopes to Jet Airways Jet Airways has strong partnership alliances with

international brands like Barista Lavazza to promote itsbrand


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Weakness

The competition for Low cost carriers isincreasing Too Many Brands Dilute the brand resonance;Customers are confused with its subsidiaries JetKonnect (Lcc) and Jet Lite JetLite operating low cost carriers withpremium features would increase operating costand slowdown the revenues The share prices of Jet Airways is constantlyfluctuating which is not attracting new investors


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Opportunity

Jet airways total debts in the year 2009 was Rs. 16,323.532009 Cr and has come down to Rs.13, 480.39 Cr in 2011.

The effective recovery plan has helped Jet Airways to gain

many investors Jet Airways has entered strategic partnership with UnitedColors of Benetton for its frequent flyer program, Jet Privilege Jet Airways has good presence over International Routes The number of Tourists visiting India is on the raise and its isexpected to go up to 1,747 Million in 2021

The passenger traffic in India has grown up to 15 in theFY2011 the domestic traffic is expected to rise to 56% in thenext FY2013


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Threats

Jet Airways faces threat from Low Cost carriers, which isattracting huge customers

Increasing fuel prices and operation costs impose newchallenges to this industry

Certain media reports accuse Jet Airways regardingservice tax issues and spoil the reputation with stakeholders

The global economic crisis has urged companies toreduce air travels to cut their costs

Jet Airways also faces threats from new Lcc like JagsonAirways Indian Aviation sector including Government-owned Air

India faces heavy loss for past two financial years, whileinternational players like Indigo Airlines make huge

profits


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Porter's 5 Forces

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Bargaining power of Buyer - High

Standard product and services

Several options available to customers

No switching cost customer need a reason to stay

Customer can research easily using the internet

Customer incentives such as JPMiles which allow customersto earn rewards, book flight in an easier/faster manner, andstay on top of the upcoming event/sales

Customer loyalty does not come cheaply the average Indian

flier expects more by paying less.

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Bargaining power of Supplier - High

Cost of fuel has risen in the years

Airplanes are mostly created by 2 manufacturers :

Boeing and Air-Bus

Aviation personnel are very few in number. The paydemanded are very high.

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Threat from substitutes - High

Numerous other low-cost airlines

Switching costs among other transportation option are high foreverything but short distance (Train, bus etc)

High exiting barriers regulated by ministry of civil aviation

Trains are the most preferred modes of transport when itcomes to domestic travel

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Threat from new entrants - Low

Very high cost or capital required for entry

Low profit margin

Difficult to differentiate product & services

Brand image and loyalty is important

New airlines must be seen as safe and reliable

Large airlines are very aggressive

Premature domestic market

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Competitive rivalry - High

Competitors like Kingfisher, Indian Airlines, Indigo

In times of low or moderate industry growth,

the competition gets fiercer as each one

tries to nab customers from the other in

order to keep their capacity utilizations

at acceptable levels

The industry is extremely sensitive

to economic cycles

Ambush marketing campaigns

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Porter Competitive Model

Intra-Industry RivalrySBU: American Airlines

Rivals: United, Delta, US Air,

Northwest, Southwest

Bargaining

Power of Buyers

Bargaining

Power

of Suppliers

Substitute

Products

and Services

Potential

New Entrants

Airline Industry Analysis - North American Market

Travel Agents

Business Travelers

Federal Government

Pleasure Travelers

Charter Service

U.S. Military

Cargo and Mail

Alternate Travel Services

Fast Trains

Boats

Private Transportation

Videoconferencing

Groupware

Aircraft Manufacturers

Aircraft Leasing Companies

Labor Unions

Food Service Companies

Fuel Companies

Airports

Local Transportation Service

FAA

Hotels

Foreign Carriers

Regional Carrier Start ups

Cargo Carrier Business Strategy Change

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SWOT Analysis

Strengths

Experience exceeding 14 years

International operations

Large fleet sizeAmong top 3 in India

Threats

Strong competitorsFuel price hike

Overseas market competition

Regulations

Weaknesses

Losing domestic market share

Old fleet with average age - 4.79 years

Need improvement in in-flight serviceWeak brand promotion

Opportunities

Untapped air cargo marketScope in global service and tourism

Increasing salaries of people


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Recommendations

Improvise on branding strategies lagging behind Indigo

Look into newer geographical regions

Improving technology to overcome unfavorable weatherconditions

Improve on Time delay in Flights

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Thank You

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Documents

Jet final.pptx