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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
Fi ure 4-2
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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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