STRATEGIC ANALYSIS

Analysis of Vision and Mission Statement

Corporate Vision: To be amongst the most innovative and admired brands, renowned for service
excellence.

ANALYSIS:
Jet airways vision is to be among the top 5 preferred airlines by providing a new and innovative
way of travel. Jet airway wants its vision to be the basis for all its future communication and it
wants to be committed to all its guests internal and external. Its vision is also to position itself in
the minds of all.

Corporate Mission:
Jet Airways will be renowned for reaching out to all our guests with a heart-warming spirit
that is our unique Indian hospitality.
We will delight our guests with genuine care and personalised quality service, along with
consistent, reliable and efficient operations.
We will innovate and deliver service excellence, setting standards for competition to
emulate.
Jet Airways will be the most sought after place to work.
Jet Airways will achieve these objectives whilst simultaneously ensuring sustainable
profitability for all stakeholders

ANALYSIS:
The mission of jet airways is to be the most preferred airlines in India and gradually expand
internationally. Its mission is to provide the best hospitality to all its passengers , handle them with
utmost care , provide them the best quality service and security .Jet airways mission is to establish
itself as the best workplace and at the same time motivate and retain its current employees by
providing them with an environment of excellence and growth.

ORGANIZATION STRUCTURE OF THE COMPANY

BOARD MEMBERS
DESIGNATION NAME
Chairman Mr. Naresh Goyal
Director Ms. Rajshree Pathy
Whole Time Director Mr. Gaurang Shetty
Director Mr. Vikram Mehta
Director Mr. Harsh Mohan
Director Mr. James Rigney
Director Mr. Dinesh Kumar Mittal
Director Mrs. Anita Goyal
Director Mr. Srinivasan Vishvanathan
Director Mr. Ranjan Mathai
 SENIOR MANAGEMENT
Group Executive Officer Capt. Hameed Ali
Whole Time Director Mr. Gaurang Shetty
Chief Executive Officer Mr. Vinay Dube
Chief Financial Officer Mr. Amit Agarwal
Chief Commercial Officer Mr. Jayaraj Shanmugam
Chief People Officer Mr. Rahul Taneja
Chief Information Officer Mr. Shrimanikandan Ananthvaidyanathan
General Counsel & Sr. Vice President Legal Mr. Ashok Barimar
Sr. Vice President Engineering & Maintenance Capt. Hassan Sayed Kamal Al Mousawi
Sr. Vice President - Strategy & Planning Capt. Nikhil Ved
Sr. Vice President- Flight Operations Capt. Sudhir Gaur
Sr. Vice President - Guest Experience Ms. Sonu Kripalani
Vice President Inflight Services Ms. Warakorn Komutanont
Sr. Vice President Cargo Mr. Pradeep Kumar
Sr. Vice President Marketing & Sales Mr. Colin Neubronner
Vice President - Corporate Affairs & Public Relations Ms. Ragini Chopra

STRATEGIC BUSINESS UNITS:

Product And Services

Business class service -on almost all its flights operated by 737 aircraft.
Premiere cabin - With wider seats and greater seat pitch
Exclusive ground check-in facilities
Check In Facility- First domestic airline to offer Tele Checking and City Check-in.
Three-tiered programme (Blue, Silver and Gold) to recognize the differences in customer
segments.
Wide alliances with international airlines for earning and redemption of miles, including
British Airways and KLM-Northwest, besides premium hotel chains, car rental services and
financial services.
The Citibank-Jet Airways co-branded card is a unique product that encourages subscribers
to earn miles while dining or shopping.
Jet Mobile service provides mobile phone users with up-dates on flight schedules and flight
timings.
Charters are a new and growing contributor to the airlines business. Several high profile
companies (MasterCard, Louis Vuitton, etc.) and individuals (Bill Clinton and his entourage)
have chartered Jet Airways flights for their domestic travels and conferences.
Jet Airways Cargo, having carried over 77,000 tons of cargo between April 2002 and March
2003, is a growing business for the airline.
On Ground Services At Jet Airways, service on the ground is as important as service in the
air. Whether it is the process of booking ticket or checking in for flight, Jet Airways ensures
that every need on the ground is met.
 Airport Lounges Jet Privilege Silver, Gold or Platinum card member or a Club Premiere
passenger, can relax and enjoy complimentary snacks and beverages in jet Airways plush
airport lounges.
Special Services Jet Airways
-Infant and Child Care Special attention is always given to younger patrons of Jet Airways.
-Wheel Chair Assistance
-Medical Emergencies Travelling with Pets Carriage of pets are permitted only on Jet
Airways Boeing 737 aircraft

GEOGRAPHY
Flies to over 20 international destination
Domestically

Core Values
Indian hospitality Warmth
Comes naturally ! - its borne of Indian origins and it translates into Jet Airways intuitive world-
class service and our commitment to comfort .Jet Airways delight its guests with heart-warming
and personalised quality service.
Going beyond
Jet Airways have the challenger spirit. It charts its own path and believe in its ability to go
beyond. It embraces barriers as opportunities and aspire to go beyond what others feel cannot
be done.
Passion for excellence
Jet Airways believes in its ability to achieve and the will to win. They have the courage and
determination to find their own solutions, defy industry conventions and set benchmarks with
their consistent high quality service, reliable and efficient operations.
Innovation
Its ideas are not bound by conventional wisdom. They are brought to life through innovations
and actions that are relevant for todays new-age consumers. Jet Airways have a different
perspective and it believes there is limitless opportunity to innovate and make air travel
refreshing and seamless.
Family spirit
The spirit of family is at the core of its organizational culture. It extends this spirit to our guests,
partners, stakeholders and the society at large.

EXTERNAL ENVIRONMENT ANALYSIS

GENERAL ENVIRONMENT ANALYSIS - PESTLE ANALYSIS

POLITICAL FACTORS
1.Tax policy
IMPACT :New Tax regulation
 It has influenced Jet airways in terms of rules to be followed in the business.
Jet Airways have sent out communications to inform passengers that GSTIN details need to be
submitted in order to avail the benefits.
The GST Identification Number is issued to entities that are registered under the new tax
regime.It is now mandatory for guests travelling for business to add their company's GST
details at the time of booking.
To ensure a seamless experience, passengers are requested to register on the portal and claim
up to 12 per cent back on flights.
The GST rate on the first class and higher class tickets is 12 per cent while the rate is 5 per cent
on economy class tickets. The GST would also replace service tax, krishi kalyan cess and
swachh bharat cess.
After submission of the details, the airlines would generate GST invoice for the particular
travel and that invoice can be used to claim the benefits.

2.Political instability
IMPACT: It can change the agreement and even cancel the routes that the airline has with others
countries.

Jet Airways is trying to obtain clearance from the General Civil Aviation Authority (GCAA, UAE)
to overfly the UAE airspace.
The full service airline will operate on the alternative northern routes via Iran, avoiding the
UAE airspace and will therefore incur an additional flying time of approximately ten to fifty
minutes.
The airline plans to augment its crew numbers to accommodate for the additional flying time
Currently, Jet Airways operates five daily flights and one flight from Delhi (three times a week)
between India and Doha

3. Deregulation on the supply side

Due to more competition among airlines and regulation on the demand side meaning passengers
and fliers are in a position to press for more amenities and low prices. This is another political factor
effecting Jet Airways.

ECONOMIC FACTORS

1. Exchange Rate:

For Jet Airways , the main foreign currency exposure is often to the US dollar because key cost items,
notably fuel, maintenance, and overhaul costs (40% of total operating costs), along with aircraft
purchase and lease payments, are typically priced in US dollar term.

2. Higher Disposable Income:

In 2014, the real disposable personal income increased by 3.5% in the first quarter. It increased by
3.8% in the second quarter. The changes in real disposable income have strong relationship with
the level of consumer spending on goods and services. Higher income consumers will likely spend
more on leisure travel. Business and industry growth will have a positive impact on the demand for
business travel.
 3.Increase in Fuel Cost and Depreciation of Rupee:

Any increase in fuel price and fall in the value of rupee pushes the prices up which effects the
performance of Jet Airways. Infusion of equity and cheaper debt would help the group deleverage.

SOCIAL FACTOR

Lifestyle
The lifestyle of the customer determines the mode of transport to be adopted by him/her. It can
affect the strategy adopted by Jet Airways . With growing standard of living and lifestyle the demand
for its services can have a positive effect.

Media views
Media view has a high impact on customers because they can influence the customers decision.

Demographic ( population)
Higher number of population can mean more customers for the company. With a growing
population in India there would be growth in terms of number of passengers.

TECHNOLOGICAL FACTORS
EXPANSION POTENTIAL
High technological development by Jet Airways has very very useful in terms of business expansion
and exploring new routes . Jet airways has come up with Online check in options, Baggage options .

Research and Development

R&D has a high impact on this industry. Better R&D can lead to less wastage and focus more on
development and better marketing strategies.

Online system
This factor leads to reduce paperwork and queue and has helped the passengers of Jet Airways book
their ticket online and also through mobile application. This has helped Jet airways increase its
revenue and profit.

LEGAL FACTORS
Liberalization of Domestic Airlines
The aviation sector was deregulated by the Government that, however, only took hesitant
steps at this stage. To begin with private airlines were only given permission to operate
charter and non-scheduled services under what was called the Air Taxi Scheme.This paved
way for Jet Airways. The second wave of changes in the aviation sector at the turn of the
century was vastly different. India had opened up to economic liberalisation, there were
more Indians travelling abroad, there was comparatively better connectivity and the
number of flights too had gone up.
ENVIRONMENTAL FACTOR

The major concern is the fuel in order to reduce pollution . Also jet airways does not
provide food during flights but they give an option to buy food in the airoplane during the
flights . The company uses recyclable forks , plastic glasses .

INDUSTRY ENVIROMENT ANALYSIS

PORTERS FIVE FORCES MODEL


COMPETITIVE RIVALRY -HIGH
1.Standard Product and Services
2.Several Options Available to customers
3.No switching cost
4.Customers can research easily using internet
5.Customer incentives stay on top
6.Customer loyalty does not come easy
cheaply- the average Indian expect more by
paying less
THREAT FROM SUBSTITUTES -HIGH
1.Numerous other low cost airlines
2.Switching cost are high but for train and
buses its low
3.high exiting barriers-regulated by ministry of
civil aviation
COMPETITIVE RIVALRY
1.Competitors like Vistara, Indigo Airlines, Air India , Go Air, Emirates .
2.Very sensitive to economic cycles.
3.Ambush Marketing Campaigns.
BARGAINING POWER OF SUPPLIERS-
HIGH
1.Rise in fuel cost
2.Airlines are manufactured mainly by
Boeing and Airbus
3.Avaition personnel demand high pay
THREAT FROM NEW ENTRANTS -LOW
1.Very high cost and capital required for
new entry
2.low profit margin
3.Difficult to differentiate products and
services
4.Brand image and loyalty takes time
5.New airlines must be seen as safe and
reliable
6.large airlines are very aggressive
COMPETITOR ENVIRONEMENT ANALYSIS

VISTARA JET AIRWAYS Go AIR

CRITICAL SUCCESS FACTORS Weigh Ratin Scor Ratin Scor Ratin Scor
t g e g e g e
1.Strong Management 0.06 4 0.24 4 0.24 3 0.18
2.Capable and Qualified Workforce 0.08 4 0.32 4 0.32 3 0.24
3.Service Promotion and In-flight 0.08 3 0.24 4 0.32 2 0.16
services
4.Non-Stop Flying 0.03 3 0.09 4 0.12 3 0.09
5.Financial Management 0.15 4 0.6 4 0.6 3 0.45
6.Efficient Management of cost 0.07 2 0.14 3 0.21 3 0.21
7.Route System 0.12 2 0.24 4 0.48 3 0.36
8.Strategic Alliances 0.05 4 0.2 3 0.15 1 0.05
9.Price Competitiveness 0.13 4 0.52 3 0.39 2 0.26
10.International Markets Served 0.09 1 0.09 4 0.36 1 0.09
11.Extra room between seats 0.06 2 0.12 2 0.12 2 0.12
12.Customer Loyalty 0.08 3 0.24 3 0.24 2 0.16
TOTAL 3.04 3.55 2.37

PROFILING OF COMPETITORS

NAME FOUNDE DESTINATI FLEET COMPANY PROFIT AIRCRAF

D ON SIZE SLOGAN T
GO AIR 2005 23 24 Fly Smart 104 AIRBUS
Million
Vistara 2013 19 16 Fly the new feeling AIRBUS
INDIGO 2005 46 140 2.6 Billion AIRBUS
Spicejet 2004 55 53 4.07 BOEING
Billion
INDIAN 1953 63 72 Have you tried the AIRBUS
AIRLINES new air india ?
INTERNAL ANALYSIS

SWOT ANALYSIS

Strengths

1. Vertically integrated operations give a competitive edge over competitors

2. Robust fleet base and strong network portfolio improves operational margins
3. Information technology and e-Commerce initiatives enhances the operational performance
4. Strong presence and good name in the aviation market
5. Taking the plane on lease rather than purchasing
6. Innovation in services
7. Trusted airlines by the corporate
8. One of the biggest domestic airlines with more than 13000 employees
9. Connects to 20 international destination and over 60+ Indian cities

Weaknesses

1. Negative margins affect the future growth plans

2. Geographic concentration exposes to risk of downturns in macroeconomic conditions
3. Presence of other airlines on international routes making it difficult to have significant
market share
4. Need improvement in in-flight services
5. Better brand promotion
6. Old fleet average around 4.78 years

Opportunities

1. Growing global tourism industry

2. Strategic alliances and partnership
3. Strong outlook of the Indian airlines industry augers the topline growth
4. Untapped air cargo market
5. Brand new fleet to improve customer confidence
6. Offer the most inclusive and scrupulous training to staff
7. More international destinations to leverage the brand

Threats

1. Intense competition in the aviation industry

2. Regulations increase compliance cost
3. Volatile fuel prices pressurizes the margin and profitability
4. Strong Competitors in international market
5. Increase in fare rates due to increase in fuel prices
 EFE MATRIX

WEIGHTED
OPPORTUNITIES WEIGHTS RATING SCORE
Growing global tourism industry 0.18 3 0.54
Strategic alliances and partnership 0.2 4 0.8
Untapped air cargo market 0.12 3 0.36
Brand new fleet to improve customer confidence 0.2 3 0.6
Offer the most inclusive and scrupulous training to staff 0.15 4 0.6
More international destinations to leverage the brand 0.15 4 0.6
TOTAL 1 3.5
WEIGHTED
THREATS WEIGHTS RATING SCORE
Intense competition in the aviation industry 0.5 3 1.5
Regulations increase compliance cost 0.2 2 0.4
Volatile fuel prices pressurizes the margin and profitability 0.09 3 0.27
Strong Competitors in international market 0.1 3 0.3
Increase in fare rates due to increase in fuel prices 0.11 2 0.22
TOTAL 1 2.69

IFE MATRIX

WEIGHTED
STRENGTHS WEIGHT RATING SCORE

Vertically integrated operations give a competitive edge over

competitors 0.16 3 0.48
Robust fleet base and strong network portfolio improves
operational margins 0.07 3 0.21
Information technology and e-Commerce initiatives
enhances the operational performance 0.08 2 0.16
Strong presence and good name in the aviation market 0.15 4 0.6
Taking the plane on lease rather than purchasing 0.12 3 0.36
Innovation in services 0.08 2 0.16
Trusted airlines by the corporate 0.15 3 0.45
One of the biggest domestic airlines with more than 13000
employees 0.12 3 0.36
Connects to 20 international destination and over 60+ Indian
cities 0.07 2 0.14
TOTAL 1 2.92

WEIGHTED
WEAKNESSES WEIGHT RATING SCORE
Negative margins affect the future growth plans 0.18 2 0.36
 Geographic concentration exposes to risk of downturns in
macroeconomic conditions 0.12 3 0.36

Presence of other airlines on international routes making it

difficult to have significant market share
0.15 3 0.45
Need improvement in in-flight services 0.15 3 0.45
Better brand promotion 0.2 2 0.4
Old fleet average around 4.78 years 0.2 2 0.4
TOTAL 1 2.42

VRIO ANALYSIS

VALUAB RAR IMITAB ORGANIZ

FACTORS LE E LE ED WHATS THE RESULT
Trusted airlines by the Temporary competitive
corporate Yes No No Yes advantage

Brand promotion no No no No Competitive disadvantage

Temporary competitive
In-flight services Yes no no yes advantage

Strategic alliances Yes no yes yes Competitive Parity

Trained staff Yes Yes Yes Yes Competitive advantage