External and Internal Environmental Analysis Essay

External and internal environmental analysis is a detailed comp unrivalednt for an constitution seeking to achieve its goals. The fol measly information at bottom this paper presents a complete external environmental and an internal agonistic environmental s freighter for JetBlue air hoses. The information provided identifies and analyses the most important external environmental factor in the remote, industry, and external operating(a) environments. When addressing external environment it speaks to a set of forces and conditions outside the organization that screw influence its proceeding. The most harsh forces complicate political, economic, social, technological, environmental, and legal (or PESTEL).The paper will further identify and collapse the list internal strengths and weaknesses of JetBlue Airways. When addressing the internal environment it speaks to the key factors and forces deep down the organization affecting its operation. The internal strength and weak nesses will apprehend an assessment of the JetBlue Airways resources, their competitive position and possibilities within. Lastly the following will analyze the structure of JetBlue and how this affects organizational performance.External Environmental FactorsFor JetBlue external environmental factors cover political, economic, social, technological, environmental, and legal. The most important external environmental factors in the remote, industry, and external operating environment of JetBlue jackpot be expanded done opportunities and threats. Opportunities encompass expansion, much(prenominal)(prenominal) as increasing routes and destinations within the U.S. Global expansion f every last(predicate)s within expansion as well, while JetBlue has many successful partnerships with international airlines in that location is further potential abroad. Threats include fuel costs, advanced technology, and government relations. burn costs and advanced technology are almost synonymous .The increasing equipment casualty of fuel in turnincreases operational costs. Advanced technology is a key factor in this space as well prone new planes for example, have the technology to utilize less fuel in flight. Governmental regulations and legalities are another key threat for JetBlue. Airline regulations bath increase expenses and potentially create inefficiency in operations in vow to meet regulation requirements. Additionally, restrictions related to international trade, tax policy, and competition can thwart expansion efforts.Internal Strengths and WeaknessesJetBlue is a pro at utilizing its resources and structure. As such, JetBlue has proven to be efficient in its internal environment. Out of the natural and mankind aspects of the internal environment JetBlue focuses on human as the key factor. JetBlue views its employees and their skills as the key to a successful structure by stress elements of loyalty, satisfaction, service quality, productivity, capability, and output quality. JetBlue reflects a culture of employees that understand how to retain customers and can perform under confused situations with an evenly varied consumer base. In attachment to human capital, JetBlue uses physical assets to set them apart from the rest.The airline fleet of JetBlue is very(prenominal) precisely selected. From its new Airbus A321 to its Airbus 320, JetBlue prides itself on comfort and luxury. Other perks offered by JetBlue include lower priced airfare compared to that of its competitors and in-flight entertainment options that succeed its competition. Internal weaknesses include a small base of destinations compared to its competitors, which could be viewed as a product of their smaller planes and possibly weaker speck recognition given its newness in the airline market. The weakness can be strengthened with expanding their location/market base.Competitive Position major players in the U.S. airline industry include Delta Air Lines, United Con tinental, American Airlines, Southwest Airlines, and JetBlue Airways. In 2013 many consolidations trim down the number of top players, such as U.S. Airways with American West, Northwest with Delta, United with Continental, AirTrans with Southwest, and American with U.S. Airways. Those carries, including JetBlue and Alaska, account for more(prenominal) than 90% of the U.S. market share (Cederholm, 2013). With the number of competitors in times of low ormoderate industry growth, the competition increases as each one tries to woo the consumer base. JetBlue is still the new kid so it is hard to interpret if its resources are inimitable. JetBlues low cost operations are interconnected to other activities in the organization like human resource vigilance and technology development. If JetBlue were to reinforce competencies, with its efficient low-cost operations, it can find a sustainable competitive service making it a non-imitable organization.JetBlues competitive advantage is buil t off of differentiation and cost leadership. Differentiation comes with a strong brand image. JetBlue provides this image through its customer service and various in-flight features such as increased legroom and entertainment options per seat. JetBlue achieves cost leadership through efficient operations. JetBlues new planes minimize fuel costs and increases revenue enhancement per flight. Not offering in flight meals allows for quick turnarounds and overall reduced costs. The differentiation strategy and its features do risk ease of imitation or differentiate ones brand past the point of consumer support.If JetBlue continues to employ a conspiracy of these strategies it will have an increased approach in outperforming its rivals. Superior performance will come through combined low-cost services with a differentiated offering as JetBlue does. As JetBlue moves onward, the extent to which it can plead the integration of low-cost and differentiation will determine whether its compe titive advantage is sustainable.StructureThe structure of JetBlue is likely very simple compared to its counterparts. The highest of quality in customer service, one style of plane, a focus on environment, all this reflects its culture. With the human aspect being their highest priority they put a pass out of thought into how they hire, train, set expectations, and monitor their employee base. JetBlue trains employees, provides compensation (likely more giving than the competitors), and equally provides empowerment among its employee base. JetBlue Airways seeks to hire and train great people (human focus), develop purpose, vision, and values. JetBlue operates on a strong organizational culture, where one listens to its customers and employees, cultivates leadership, and provided incentive.SummaryThe airline industry is exposed to upturns and downturns with economy trends. With that a growing economy creates a greater demand for air travel, whereas a decrease in the economy heart r educed demand and intensified competition. JetBlue has managed to maintain a quality brand as a newer airline, in the face of some significant challenges, such as the tragedy of 9/11. JetBlue Airways new planes, competitively low fares, non-unionized labor, indeed far an effective business model, and strong emphasis on the human element, it remains to provide a foothold in them market as a solid competitor regardless of its external threats and internal weaknesses.ReferencesCederholm, T. (2013, family 3). Overview External factors that influence the airline industry. Retrieved May 31, 2015, from http//marketrealist.com/2014/09/must-know-external-factors-influencing-airline-industry/ JetBlue Airline Tickets, Flights, and Airfare. (n.d.). Retrieved May 25, 2015, from http//www.jetblue.com