Escolar Documentos
Profissional Documentos
Cultura Documentos
11/27/2014
ACKNOWLEDGMENT
I would like extend my thanks to Mr. S. Das, our module leader for guiding us and bestowing Knowledge upon us.
His motivational skills have and support contributed largely to my case analysis. While working on the case I have
enriched my knowledge base and adapted the learnings to my thought process.
I am truly grateful to my colleagues for their help, support, and providing me with valuable insights wherever I
required them which helped me throughout the course of writing the report.
CONTENTS
Acknowledgment ...........................................................................................................................................................1
Case Brief ....................................................................................................................................................................3
Introduction ...............................................................................................................................................................3
Assumptions ..............................................................................................................................................................3
Issues .............................................................................................................................................................................4
Analysis of data ..............................................................................................................................................................5
Swot ...........................................................................................................................................................................6
Porters 5 forces analysis ...........................................................................................................................................7
Options & alternatives ...................................................................................................................................................8
Porters generic strategies .........................................................................................................................................8
Ansoff matrix .............................................................................................................................................................9
Conclusion & recommendation ...................................................................................................................................10
Appendix ......................................................................................................................................................................11
Table 1.1 (adapted from the case) ...........................................................................................................................11
Table 1.2 (adapted from the case) ...........................................................................................................................11
Exhibit 2.1 ................................................................................................................................................................12
Exhibit 3.1 ................................................................................................................................................................14
References ...................................................................................................................................................................18
CASE BRIEF
INTRODUCTION
Founder: Naresh Goyal
Before the inception of Jet airways he worked around in the same industry viz. cashier at continental travels, sales
agent at Lebanese international airlines, PR manager at Iraqi airways etc. Doing so he developed know how and
contacts in aviation industry.
The company initially started as a representation providers in sales and marketing for airlines like air France,
Austrian airlines and Cathay pacific.
The major development of liberalization in 1991 was point in time which lead to Naresh Goyal starting up his own
airlines by leasing 4 Boeing 737 backed up by Gulf air and Kuwait airways.
Commenced commercial operations on 5th may 1993. In first year of operation, no. of passengers served were
730,000/-. In 2005, the company, had 55 aircrafts, served over 10 million people and generated revenues of USD
1.4 billion.
It uses five hubsMumbai, Delhi, Chennai, Kolkata, and Bangalore. It has scheduled services in 42 destinations and
over 1,924 flights a week.
Their strategy was clear: serving the business traveler in India. Their services are directed towards the
convenience of the business traveler like tele-check-in, priority service, same day return flights, e-ticketing etc.
High daily aircraft utilization is maintained at Jet airways. It enhances the efficiency of its operations and generates
more revenue and is achieved in part by reducing turnaround time at airports in order to fly more hours on an
average in a day. Another source of revenue is carriage of cargo, consisting courier, postal mail, and commercial
cargo.
Its market share peaked at 46% but has fallen to 35% since the launch of aggressive new low-cost carriers such as
Air Deccan, Spice Jet, Indigo, Go Air, etc.
However, the acquisition of Air Sahara by Jet Airways on 13 April 2007 is indeed a positive development for Jet
Airways. The takeover has propelled Jet Airways as the largest private airline in the country having a fleet size in
excess of 80 aircraft and around 42% of the market share.
ASSUMPTIONS
The discussions and analysis that will follow are subject to scope of the given case study and not the information
available outside it.
Only analytical tools and theories to support the study and analysis are beyond the scope of the given case.
ISSUES
Market share of jet airways is falling due to intense current competitive scenario. Should focus on business
customers be continued?
Is the service tracker instrument devised by jet airways better than SERVQUAL?
Can the current yield management systems be further improvised by prompt communication with potential
customers to ensure full occupancy?
ANALYSIS OF DATA
The primarily conspicuous problem that has to be addressed is that the domestic market growth rate is approx.
25% in comparison to the growth in yield and revenue of Jet airways (refer table 1.2). This implies that there is
considerable rise in new entrants and growth of competitors which can be a major obstacle in future sustainable
development of jet airways.
2003
2004
4600
4500
4400
4300
4200
4100
4000
3900
3800
3700
2002
2003
2004
The above mentioned charts signify that Jet airways is doing well in respect of growth in revenues and increasing
customer base but it is observable that the number of domestic stations served has decreased by 3 stations and
there is an addition of 1 international station. Hence it becomes necessary that their strategy should be in line with
growing market environment.
SWOT
Internal:
Strength
Weakness
External:
Opportunity
Threats
Cheaper airlines
Security requirements;
Air traffic and airport congestion;
Adverse weather conditions, especially in North India during winter months;
Defects or mechanical problems with the aircraft of the airline;
Unavailability of cockpit and in-flight crew;
Strikes or work stoppages; and
Acts of third parties upon which the airlines rely for requirements, such as, fueling and
maintenance
DEGREE OF RIVALRY(HIGH)
Internet booking
comparison makes more
informed customers
Predatory pricing
Brand identity
No switching costs
Substitutes available
THREAT OF
SUBSTITUTES (HIGH)
-Low cost airlines present in the market
-Trains are a major threat
-Price-performance
trade-off of substitutes
LOW
SUPPLIER POWER
HIGH
DEGREE OF RIVALRY
HIGH
BUYER POWER
HIGH
THREAT OF SUBSTITUTES
HIGH
Now we can observe here that the market has low restrictions to entry and there are high restrictions to exit.
Hence it is imperative for jet airways to strategically position themselves to increase the barriers to new entrants
so as to gain excess market share. There is a dire need for jet airways to draft a strategy to maintain market
leadership and they can exercise their current supremacy and holding to take proactive measures.
Competitive advantage
2.
3.
They can go for cost leadership, but for jet airways this is a highly unlikely option as they are positioned as
a brand for the business traveler. If they take up cost saving no frill methods of operations, they might
lose their niche that they have developed.
Differentiation is the one of the preferable option for Jet airways as they are currently operating under
the same and if they effectively perform on the same basis, the just might gain intrinsic niche in their
target market.
Focus is also a narrower approach which yet another option at the present market growth rate. Right now
the company needs to have a broader approach to gain in accordance with the increase in the market.
Jet airways are currently following a mix of differentiation and focus techniques as they have multiple awards for
quality and they focus on business class. Their competitors are low cost airlines. They have the option to either
continue with the same strategy or strive to achieve cost leadership too and attain market dominance.
ANSOFF MATRIX
Jet airways can use Ansoff matrix to determine the most appropriate alternative for them:
They have the option of market penetration i.e. they can attempt to gain more market share in the current
scenario by either product differentiation or providing the same quality at a lower price to fend off competition.
They can also go for prospecting new target market. Currently they focus on the business class and the frills and
add on services for them. They should contemplate about tapping undiscovered potential market as India has a
huge population and most of it is untapped market as they are focusing solely on the business class
They can try to come up with a new product all together, but switching cost in the aviation industry is too high
hence this option is prima facie unfeasible.
Diversification is also an option open to them but it is not advised at the moment as current scenario demands
them to focus on retaining their market share and if they invest into another industry, they might not be able to
invest the required capital in their current business and lose to competitors.
APPENDIX
TABLE 1.1 (ADAPTED FROM THE CASE)
Various parameters and data relating to the utilization of aircraft efficiency at jet airways:
Parameters
2002
2003
2004
5.82
6.41
6.91
7,780
8,496
9,162
4,777
5,291
5,852
61.4%
62.3%
63.9%
38
41
41
34.9
38.9
40.8
44
40
41+1
9.66
9.41
9.46
792
805
816
Parameters
2002
2003
2004
5.82
6.41
6.91
7,780
8,496
9,162
4,777
5,291
5,852
61.4%
62.3%
63.9%
4,057
4,173
4,655
2.8%
11.5%
Yield
4.36%
4.52%
5.01%
3.7%
10.8%
EXHIBIT 2.1
We look up to you, to help us serve you better
JET airways
THE JOY OF FLYING
Dear Passenger,
Thank you for choosing to fly with us. On behalf of the entire Jet Airways family, I am delighted to welcome you on board our flight.
For us taking care of you is not just good business but indeed an enduring commitment. We always seek the views of customers such as yourself to help us
serve you even better.
I will therefore be very grateful to you if you spare some of your precious time to fill-in this Service Tracker. As the Tracker is a service quality survey it is
not designed to enable you to provide specific feedback. You may, however, for any specific feedback, request our cabin Crew for a Comment Form.
Once again, we are delighted to have you on board and wish you a very pleasant flight.
Warm Regards,
Wolfgang Prock Schauer
Chief Executive Officer
Flight No. 9WFrom.To.
Date..Seat No.
Class of Travel o Club Premiere o Economy
1.
2.
3.
4.
5.
6.
o
d.
Overall Rating for Airport Services
o
In-flight Services
a.
Service by Cabin Crew
i. Friendly welcome at the time of boarding
o
ii. Assistance on board
o
iii. Courteous and professional service
o
iv. Responsiveness to your needs
o
v. Grooming
o
vi. Interaction
o
vii. Overall rating for cabin crew
o
b.
In-flight reading material
i. JetWings
o
ii. Selection of newpaper(s)
o
c.
JetKids giveaway
i. Quality
o
ii. Content
o
d.
Announcements
Cockpit Crew
i. Clarity
o
ii. Diction and Fluency
o
Cabin Crew
i.
Clarity
ii.
Diction and Fluency
e.
Others
i. Cleanliness of the cabin
o
ii. Cleanliness of the washroom
o
iii. Temperature in the cabin
o
Before take-off
o Just right o Too cold o Too hot
After take-off
O Just Right o too cold o Too hot
o
o
8.
9.
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
Food
Type of meal enjoyed in this flight
o Vegetarian o Non-vegetarian o Others
b.
Meal appropriateness (for time of flight)
o
o
o
o
c.
Meal presentation (visual appeal)
o
o
o
o
d.
Meal quality(taste)
o
o
o
o
e.
Meal quantity
o Just right o Too little o Too much
f.
Overall rating for food
o
o
o
o
Please rate your total experience with Jet Airways on this trip
o
o
o
o
Based on your experience on todays flight
i. Would you travel with Jet Airways for your next trip?
o Definitely o Probably o Definitely not
ii. Would you recommend Jet Airways to your friends?
iii.
o Definitely o Probably o definitely not
Your experience on arrival, of your previous flight on Jet Airways
Date ..
Flight No. 9W..From..To..
a.
Waiting time for Tarmac Coach (if applicable)
o None o 2-5 mins o 6-10 mins o >10 mins
b.
Baggage arrival
o 2-5 mins o 6-10 mins o 11-15 mins o >15 mins
c.
Presence of staff at conveyer belt
o Yes o No
d.
Handling of baggage related issues (if any)
Staff efficiency
o
o
o
o
Courtesy and helpfulness
o
o
o
o
Responsiveness to your query
o
o
o
o
e.
Overall rating for baggage handling
o
o
o
o
Staff Recognition
Kindly help us recognize those members of our staff who have impressed you with their outstanding service.
i.
o
o
o
o
a.
7.
o
o
Name
o
o
o
o
o
ii.
iii.
iv.
Department ..
Name .
Department ...
Name .
Department
Name ..
Department
We thank you for the time that you have invested in answering our Service tracker. Your valuable opinion and constant support is our inspiration
EXHIBIT 3.1
Sample Servqual questionnaire
The Survey
The questionnaire below is in two sections. The first section asks you to rank all banks according to your
expectations i.e. what you expect all banks to provide. The second section asks you to rank the bank you chose
for the survey according to your experiences and perceptions.
Expectations
This section of the survey deals with your opinions of banks. Please show the extent to which you think banks
should posses the following features. What we are interested in here is a number that best shows you
expectations about institutions offering banking services.
Strongly
Disagree
Strongly
Agree
Statement
1.
2.
3.
4.
Materials associated with the service (pamphlets or statements) will be visually appealing at an
excellent bank.
Score
Statement
5.
6.
When a customer has a problem, excellent banks will show a sincere interest in solving it.
7.
Excellent banks will perform the service right the first time.
8.
Excellent banks will provide the service at the time they promise to do so.
9.
10.
Employees of excellent banks will tell customers exactly when services will be performed.
11.
12.
13.
Employees of excellent banks will never be too busy to respond to customers' requests.
14.
15.
16.
17.
Employees of excellent banks will have the knowledge to answer customers' questions.
18.
19.
Excellent banks will have operating hours convenient to all their customers.
20.
Excellent banks will have employees who give customers personal service.
21.
22.
The employees of excellent banks will understand the specific needs of their customers.
Score
Perceptions
The following statements relate to your feelings about the particular bank you have chosen. Please show the
extent to which you believe this bank has the feature described in the statement. Here, we are interested in a
number from 1 to 7 that shows your perceptions about the bank.
Strongly
Disagree
Strongly
Agree
Statement
1.
2.
3.
4.
Materials associated with the service (such as pamphlets or statements) are visually appealing at
the bank.
5.
6.
When you have a problem, the bank shows a sincere interest in solving it.
7.
8.
9.
10.
Employees in the bank tell you exactly when the services will be performed.
11.
12.
13.
Employees in the bank are never too busy to respond to your request.
14.
15.
Score
Statement
16.
17.
18.
19.
20.
21.
22.
Score
REFERENCES
Naresh goyal and jet airways case
Francis Buttle, 1996, "SERVQUAL: review, critique, research agenda," European Journal of Marketing, Vol.30, Issue
1, pp. 831
Humphrey, Albert (December 2005). "SWOT Analysis for Management Consulting". SRI Alumni Newsletter (SRI
International).
Porter, Michael E. (1980). Competitive Strategy. Free Press. ISBN 0-684-84148-7
The Five Competitive Forces That Shape Strategy - Article - Harvard Business School. 2014. The Five Competitive
Forces That Shape Strategy - Article - Harvard Business School. [ONLINE] Available at:
http://www.hbs.edu/faculty/Pages/item.aspx?num=34522. [Accessed 26 November 2014].
The Ansoff Matrix. 2014. THE ANSOFF MATRIX. [ONLINE] Available
at:http://www.spencertom.com/2013/10/09/ansoff-matrix/#.U60YwZSSz3Q. [Accessed 26 November 2014].