2.4 The impact of IT on its strategic evolution Jet Airways started taking over other competitor airlines by 2005. They had limited use of IT systems for their ticketing, financial system, payroll, operational handling etc. till then. However, from 2005, the influence of IT in the success of Jet Airways started picking pace. IN 2005, Jet implemented a RAPID airline revenue accounting system. This was a strategic move as no other airline in the subcontinent had implemented this system. The provider of the solution was Mercator, one of the IT divisions of Emirates Group. The reservations, ticketing were manually done and the integration was time consuming and often faced with technical glitches. Jet moved ahead of its competitors with the introduction of technology package from Sabre Airline solutions. Jet was the first airline in India to leverage the industry’s new generation solution for passenger management and reservations. This was a major boost to Jet’s position in the market as the IT system enabled Jet to take complete advantage of the changing airline scenario in India and globally. Jet also adopted Sabre’s flight operating system for daily flight planning and movement control, SabreSonic Check-In, SabreSonic Web etc. The e ticketing was a successful concept as the awareness about internet and its applications was increasing in the country and this time saving and efficient method made integration of the processes easy. Given the size of the organization and the amount of information that had to be integrated across segments, Jet undertook a TiS eFlow Unified content platform for its coupon Processing Centre. This provides for an automated data capture solution that improves enterprise business process by integrating data... ... middle of paper ... ...e selection and management of information systems can definitely help in attaining these goals and assist to incorporate the innovative solutions as well. Choosing the suitable information helps managers observe their situation clearly. For example, when airlines observed MIS that included loss in the revenue due to not selling empty seats or rooms, they came up with ways to get some value from latecomers at deep discounts. By incorporating better and better technology systems in terms of customer friendly UI, faster search engine, price comparison features, advanced features on the website, we can reach out to demands of more customers and also strengthen vital features like security, avoiding delays, reducing the cost of travel. The scope of improvement is virtually endless and the companies will have to keep on evolving in order to survive in the future as well.
WestJet is the second-largest carrier in Canada, which mainly focuses on economic airlines. In decades past, WestJet expanded its destination network form all western Canadian cities to international scope. During this development period, IT played a important role. For example, electronic ticket is used in the airline reservation system. However, some IT-related issues also hinders the company’s development.
It educated all employees on the business goals of the company and created a system called “Knowing the Score” to provide transparent information that would drive performance. The company sought out other ways that IS could support its strategy, and recognized, for example, that technology actually enabled its ability to provide customers with a personal touch (Ross & Beath, 2007). The company also tried to ensure that all IS changes were in support of its mission. In fact, the company acknowledged an opportunity to improve its process by evaluating post-implementation impact on operating costs and customer service (Ross & Beath, 2007). Nevertheless, linking IS and the company’s business strategy became more challenging as the company looked at growth opportunities. For example, there were concerns that expanding internationally required operational changes that challenged its principles. Management kept sight of the business strategy at Southwest Airlines and tried to position the company to drive both cost and customer service benefits from IT (Ross & Beth,
While the company business strategy may be working presently, over time, minute comparable financials, ease of product imitation, and multiple core competencies will send jetBlue aircrafts and business crashing. Currently, jetBlue defines themselves as cost leader competitors but also differentiates their service with a unique business model. Attempting too many competencies is both difficult and rarely successful. The solution to cease this integrated struggle involves perfecting one core competency and increasing support among investors to amplify market share and provide a dominant competitive edge.
3. Fortunately, there are several opportunities in the airline industry of which companies will be able to take advantage. First, the airline industry is reviving and passenger levels are now returning to pre-9/11 status. Companies can offer high degrees of service and reduce costs through the use of the Internet, such as online ticket sales, flight seating charts, and plane infor...
Use of technology and automated processes to reduce reservation, ticketing and customer services costs. Paperless cockpits, use of e-manuals, electronic ticketing, owning its own in-flight entertainment provider, automated baggage handling are some of the examples where Jet Blue’s use of technology has lowered operating costs.
In a dysfunctional time for the airline industry, most airlines, especially major carriers, are adapting the concept of "doing less with more." One low-cost carrier, JetBlue, is changing the domestic aviation landscape in this regard and is defying the odds. Here is a company that has examined each marketing mix elements carefully, has adapted them to its customer’s needs, and is succeeding because of this approach.
As an airline corporation serving most of the United States and several international locations, JetBlue burst into the scene and grabbed significant market share. However, with growing reputation came stiff competition from major airlines as the rival brands felt a significant threat. It forced JetBlue to re-think a lot of its business model, from fuel-economy of its carriers to marketing strategy. Nonetheless, a decade-and-a-half since its debut, it holds strong in the highly competitive and fragmented air travel industry, particularly impressive with its customer satisfaction rating.
In our world today every country has their own set of avowed and ascribed identities for it's population. An avowed identity is one a person gives to themselves, a woman might say she’s a sister or a wife. The opposite of that is an ascribed identity, or how society sees someone. For example, a rich person could be perceived as a snob. To ascribe someone with an identity is to judge them based on societal norms. The entertainment industry in America is no different then it's parent culture. Both men and women in this industry have identities placed on them, and they change based on their career. Women are given more negative ascriptions than men in the media. That is how Americans identify people they read about, with the identities the media gives them. Women are more negatively perceived that men in the music and fashion industry because of their ascribed identities in the media, and gender roles in our nation.
IT governance in the airline industry is specifically tied to sales and value chain management. By the late 1990s, international travel software traditionally used by travel agencies, such as SABRE, was opened up via application programming interface (API) to web developers (Nicolaou & Schick, 2011). As a result, consumers saw the advent of internet-based travel agencies, and many airlines and other travel companies began to sell directly to passengers (Buhalisa & Licata, 2002).
Jet Airways indicates a negative growth in the BCG Matrix. Amongst its competition, Jet Airways owns a lesser market share. It is therefore recommended that Jet follows the strategy proposed for each category.
Jet airways made a strategic mistake by buying Sahara airlines. In October, 2008, Jet Airways sacks 1900 employees across all departments and categories as a measure to switch to leaner business
Jet Airways is a Mumbai based airline which was incorporated as a limited liability company in April’92. In May’94, all the shares were transferred to Tailwinds International co-held by Naresh Goyal (60%), Gulf Air (20%), and Kuwait Airways (20%). In Oct’97, as result of change in civil aviation policy, forbidding foreign investment in passenger airlines, Goyal took control of the entire company.
The first initiative that they were able to gain in competitive advantage was the reduction of costs. They have been able to use an online system where consumers can reserve tickets avoiding which avoids using travel agents. Having this systems reduces costs for the company as well because they do not have to hire nearly as many as employees. Along with buying tickets, JetBlue has been able to use other systems to reduce costs which helps them with the maintenance of their planes and organizing information that involves every aspect of their business ranging from their planes to their employees and consumers. The second initiative that JetBlue uses is the creating of new services. By creating their new online services and systems they are able to gain competitive advantage because it allows easier and less expensive accessibility to their services. Not only have they created new services but they are able to differentiate these services from their competitors because of the easiness and quality of the services that they do provide. They not only focus on making their services the best but also the highest level of customer service that they can offer which other airlines struggle to do. Other competitors have realized that JetBlue is beating them in many aspects in the business that they have needed to adjust what they are doing to catch up. Even with the jumps in technology use with the other companies, JetBlue has still been able to enhance their services to continue to gain competitive
An alternate strategy for JetBlue to return to profitability is to expand the market it services. A large part of JetBlue’s business is transporting cust...
David Neelman realized his vision of creating an airlines company that is focused on customer service by starting JetBlue. During the startup phase or entrepreneurial stage, typically most of the companies go through the activities of marketing the service and /or product. But Neelman, perceptive of the industry needs, went about raising enough capital before starting JetBlue, as airlines industry is a capital intensive industry. His entrepreneurial style and previous experience enabled him to identify the core value of the service “To improve the passenger experience at a low cost” that he wanted JetBlue to provide. Neelman wanted to utilize technology to bring better customer experience at a low cost. Some of the technological activities that JetBlue planned include state-of-the-art revenue management system, paperless tickets etc. His in-depth experience enabled him to identify the external factors that would affect the business such as simple check-in and boarding process, hassle free ticketing procedures etc. This emphasized his knowledge of adapting to the ever changing customer needs. Neelman instilled the culture of...