BUSA 4126

Opportunities

1. Jet Blue can expand into new and existing markets. With the adoption of new technology and the governments free trade agreement there is plenty room for growth in the market. Under the free trade policy different good and services can be sold internationally with little to no government tariffs. Therefore, Jet Blue services will be used to transport these items.

2.Increasing the number of flights. By expanding Jet Blue can increase the amount of travel nationally and internationally, because more planes will be available. This will minimize the competition from competitors like Delta and Southwest because Jet Blue will be more available.

3. Free cash flow will provide the company opportunities to invest in nearby products. With all this income coming in Jet Blue will be able to invest in newer and more competitive technology and products. Along with purchasing things the company will need to improve flights and speed, they will also a lot more disposable income to invest in simple things such as entertainment for customers to enjoy while flying. Also, improving the comfort their travelers.

Threats

1. Due to Covid-19 people now are less likely to travel and if another shutdown were to take place the company would take huge loss. This pandemic is still very unpredictable so depending on the numbers of people getting sick from it the government may decide to do another shutdown until numbers are lowered. Which means all travels locally and internationally will be suspended until further notice, this will result in unemployment and bankruptcy.

2. Strong competition amongst competitors like Southwest and Delta. In the case Jet Blue decides to expand, their competitors may decide to do the same. They can also lower their prices to create a competitive advantage over Jet Blue. For instance, giving their customers cheaper flights to maximize their clientele because people are likely go where the best price is at.

3. There may not be a regular supply of innovative products. Over some time, Jet Blue has developed numerous products in which they are responses to the development of other competitors. Being that the supply of new products being developed is not regular this can lead to high and low shifts in sales number over a period.