JetBlue Using Porters Five Forces Case Study Example | Topics and Well Written Essays - 2000 words - 1

JetBlue Using Porters Five Forces - Case Study voiceAs the paper highlights, unlike other industries, the airline industry is characterized by high start-up and high speed costs, which acts as a barrier to entry. So much is the costs that airlines that make it in the industry each must save been started a bit earlier in order to make it up the contention ladder in a gradual manner. In addition, so much is the cost that small airlines must be affiliated with large airlines in order to make it in the industry. In order to avow that the threat of new entrants is minimal, a look at JetBlue shows that success within the industry was not obtained overnight. Instead, the comp any(prenominal) has gradually moved towards success. The case study also shows that some attempts by some airlines to make it in the same market with Jetblue were not simple. For example, US Airways was one of the five US Airlines that filed bankruptcy in 2006 owe to the drop in revenues and increased costs. Th e company does not have many suppliers. Only two of them be identifiable. Essentially, this means that the suppliers bargaining power is high as the company does not have many suppliers to opt from. Apart from airline suppliers, other suppliers include burn down suppliers and the current price of fuel in the industry is high. This again makes the bargaining power of suppliers to be high. Since the airline has prescheduled flights, fuel supply is preferably important as it cannot afford to miss any airline. This still confirms that the suppliers bargaining power is high and any of their actions can lead to serious consequences on the industrys part such as low gear efficiency, which is highly related to fuel supply and cost. Customers within the airline have several airline options to choose from.