The Strategic Planning For Jet Airways

The Strategic cooking For grand AirwaysThe purpose of this constitution is to evaluate a made and well-organized strategical planning for airline industry providing course Airways strategic plan. spout Airways is the Indias market leader in airline industries, however has faced increasing competition over the last decade resulting attrition in their market shargon.The report begins by analysing the current internal and external environment of small fry Airways. Through strategic evaluation its recommended that honey oil airways focus on their fundamental service delivery to restore their competitive benefit within the industry. This will require putting into practice a combination of twain strategies a pack processes schema and a dodge focused on technological advancement.The people processes strategy was derived from a rate of industry sources outlining jet Airways decline in customer satisfaction. The technological advancement strategy coincides with the renewal of small fry Airways aircraft communicate and will further improve the overall customer experience.INDEXObjectivesThe main objective of this paper is to develop the internal and external environmental analysis and strategic planning with risk management and transaction ethics.Specific objectives be pastime,Evaluate the current strategic go down of Jet Airways.Examine the strategic Planning Models for Jet Airways.Examine Jet Airways internal and external environment.(1.0) Overview of Jet AirwaysJet Airways is an airline stupidd in Mumbai, India. It is Indias third largestairline after Air India and Kingfisher Airlines. It operates over 400 dailyflights to 64 destinations worldwide. Its capital base is MumbaisChhatrapati Shivaji International Airport with secondary hubs at Bangalore,Brussels, Chennai, Delhi, Hyderabad, Kolkata and Pune as focus cities.In July 2008, Which? magazine ranked Jet Airways as the worlds best long-haul airline after Singapore Airlines. In a poll conducted bySmartTravelAsia.com in September 2008, it was voted as the worldsseventh best airline overall. It has also won an award for the spirit of itscatering. In February 2009, Jet Airways had 846,000 passengers,making it the second largest airline in India behind Kingfisher Airlines.Jet Airways also operates two low-cost airlines, namely Jet Lite (formerly Air Sahara) and Jet Airways Connect.(1.1.1) corporate StructureMr. Naresh Goyal ChairmanMr. Ali Ghandour theater directorMr. Nikos Kardassis Chief Executive OfficerMr. Saroj K. Datta Executive DirectorMr. Abdulrahman Albusaidy Group Executive OfficerMr. Sudheer Raghavan Chief mercantile OfficerCapt. Hameed Ali Chief Operating OfficerMrs. Anita Goyal Executive ill-doing President Network Planning revenue enhancement ManagementMr. Raja Segran Sr. frailness PresidentMr. P. K. Sinha Regional wrong-doing PresidentMr. Gaurang Shetty Sr. Vice President Customer operate AlliancesCapt. Hassan Al-Mousawi Sr. Vice Presid ent-Operations On Time PerformanceMr. Abdulkhaliq Saeed Sr. Vice President Engineering MaintenanceMr. Mahalingam Shivkumar Sr. Vice President, FinanceMr. Rajesh Sharma Vice President Internal scrutinizeMr. K. G. Vishwanath Vice President Commercial Strategy and Investor RelationsDato K. Jeyakanthan Sr. Vice President Engineering assistancesMr. Jay Shelat Vice President CargoMr. Raj Sivakumar Vice President Network Planning, Revenue Management DistributionDr. Samar B. Srivastava Vice President Human ResourcesMr. Ashok Barimar General Counsel Vice President goodMs. Ragini Chopra Vice President Corporate Communication and Public RelationsMs. Monica Chopra Company Secretary Sr. General Manager Legal(2.0) environmental digestFor success within the airline industry, an awareness of the external environment is essential. This section aims to highlight the position of the industry, in particular looking at competitors and assessing Jet airways capability to mee t current and future challenges.(2.1) PESTEL Analysis Of Jet AirwaysPolitical IssueLicense issue for international operation.Infrastructural constraint.ATF price policy.Open sky policy.FDI Limits zipper of light% Greenfield airport74% existing airports.100% through special permission.49% for airlines.Economic EffectsThe income level is rising.Contribution to the Indian economy.There is a rise in the cost of fuel.Investment in the vault of heaven of aviation.The growth of the middle income group family affects the aviation sector.Reduced fare but yet not enough. amicable EffectsDeveloping of the cities to better service and airports.Employment opportwholeies. sanctuary regulations.The status symbol attached to a plane travel.Technological Effects youthfulization of aircrafts.The growth of e-commerce and e-ticketing.Satellite based navigation system.Modernisation and privatisation of the airports.Modern technology like CAT3 and ILS.Environmental SectorThere is an increase in the gl obal warming.The sudden qualify and the unexpected behaviour of the climate and to depend on the atmosphere. absolutelyage of the infrastructural capacity.There is a tourism saturation.Legal Factors.FDI limits.Bilateral treaties.Airlines acquisitions and the leasing cost.(2.2) SWOT Analysis Of Jet AirwaysFigure 2.2 shows SWOT AnalysisSMarket driver. sense exceeding 14 year.Only private airline with international operation .They start out a grueling brand value and their reputation is very high in the mind of the customers.The service quality is good.Largest fleet size.There is a continuous innovation in their business.WLoosing domestic market share . emeritus fleet with average age around 4.79 years.Scope for improvement in in-flight service.High ticket pricing. veneering a tough competition from the competitors.OUntapped air cargo market .Scope in international service and tourism.The non penetrated domestic market.TStrong competitors.Fuel price hike.Overseas market competition. al-Qaida issues.Tourism saturation.Economic slowdown.Promotion and sponsorship declining.(3.0) Strategic Planning Model(3.1) Porters Five Forces Model Of Jet Airways(1) The brat of the entry of new competitorsThe scourge of the new entrants is very high for Jet Airways, because right now on that point are so many new airline company that has come with new strategies and services. The more lucrative the industry is the more attractive it will be to new competitors. And as we know that Jet Airways is a very well known airline company of India since many years and it has a brand pattern and has a good reputation on the customers mind but then also Jet Airways has to feast the best service quality to the customers to remain the market leader in the business.(2) The intensity of the competitive challengerThe intensity of the competitive rivalry is high for Jet Airways. Jet Airways has many competitive rivals like Kingfisher Airlines, British Airways, Air India, Virgin Atlantic, etc. Jet Airways has both long haul flights and short haul flights. They are losing the domestic share market so in this competitive industry they have to bring any(prenominal) innovation in their business. Their strategy is very powerful because they are concentrating more in the service quality. Their aircrafts are modernised and they have the modernised technology like CAT3 and ILS.(3) The threat of substitute products or servicesThe threat of substitute for Jet Airways is low. There are few substitutes for Jet AirwaysFor short haul flights they have Jet Connect and Jet Lite.For long haul flights they have No notable substitute.(4) The negotiate power of customers (buyers)The negotiate power of buyer is medium. Jet Airways has the choice to switch the suppliers and according to that the customers of Jet Airways also has the option to switch.(5) The bargaining power of suppliersThe bargaining power of supplier is high. The supplier can switch to any other option at any time.(4. 0) Managing RiskEvery business faces risks that could present threats to its success.Risk is defined as the chance of an event and its consequences. Risk management is the practice of using processes, methods and tools for managing these risks.Risk management focuses on identifying what could go wrong, evaluating which risks should be dealt with and implementing strategies to deal with those risks. Businesses that have identified the risks will be better prepared and have a more cost-effective way of dealing with them.The types of risk your business facesstrategic, for example a competitor coming on to the market.compliance, for example responding to the introduction of new health and safety legislation.financial, for example non-payment by a customer or increased interest charges on a business loan.operational, for example the breakdown or theft of cay equipment.(4.1) Managing Risk Of Jet AirwaysJet Airways falls in the strategic risk and the operational risk.Strategic and worki ng(a) RiskOverview of cyber-security and best practices in fraud prevention.Understanding key fundamentals of PCI Data Security Standards and what airlines destiny to do to align with the necessary requirements.Risk management in Jet Airways Fraud prevention strategies and processes.Strategies in IVR risk control.The way forward in risk management.(5.0) Strategy and Ethics of JET AIRWAYSStrategy of Jet AirwaysThe main strategy of Jet Airways is to maintain service quality. Jet Airways (India) Ltd. has earned the distinction of receiving the IATA useable Safety Audit (IOSA) Registration. The airline has successfully completed the Operational Safety Audit and has entered into the IOSA Registry.One of the strategies that Jet Airways is followingJet Airways strategy removing a row to gain passenger spaceMumbai After having removed a row of seats from some of its planes to increase overall leg room for passengers, Jet Airways (India) Ltd is using an innovative, cubic billboard campaig n to sell the concept.Developed by Mudra Groups outdoor unit Primesite, the Mumbai billboards have images of two chairs sit down close to each other, and then one drifting on railings to reveal the message Weve removed a row to give you more space.The row of seats has been done away with in Jets 737-800s series planes. removal of rows to constrain space for cramped passengers isnt a new idea as many airlines, especially in the US, have used similar tactics and messages to differentiate their planes from rivals. Several other companies, such as railcar makers (with sections of cars) and even coffee companies (Bru used chairs and tables) have used three-dimensional billboards to stand out.Says Gaurang Shetty, vice- president, marketing, Jet Airways We wanted to create an impact and effectively communicate that we have removed a row of seats from our domestic flights, thereby giving more space on our domestic flights. The outdoor innovation has only been done in Mumbai considering the restrictions on the same in other metros. We would be communicating through hoardings in Delhi, Chennai, Kolkata and Bangalore.Sanjeev Hajela, president, Primesite, says the campaign has a budget of Rs55-60 lakh. Jet is a large user of outdoor media and is believed to spend as much as Rs10-Rs12 crore a year, some 20% of the airlines marketing spend. Jet Airways was one of the early entrants in the aviation business, as also the first private airline to fly to overseas destinations and had a relatively simple inventive message Jet Flies to 44 Domestic and 8 International Destinations.Notes Jagdeep Kapoor, managing director of Samsika Marketing Consultants Pvt. Ltd Earlier, the position of the Jet brand was such that it reflected aspirational value. It was an aspired brand while all the rest were tired and perspired brands. Today its different. They have found a competitor in their own league in form of Kingfisher. There is a switch taking place, with some customers shifting loy alties to Kingfisher.He classifies Jets growth in terms of three Ss Sustenance, Service and the take in to (Speed Up). In spite of not being the first entrant in the aviation space, the Jet brand grew steadily, sustained and survived. Later on, Jet grew to be the best premium brand in the unhurt country by highlighting the service aspect. In service, they were unparalleled and premium. Today, its different and Jet needs to speed up. They need to aggressively build themselves as a brand, and advertise themselves like a consumer brand if they need to beat Kingfisher.2) Ethics of Jet AirwaysThe Code of Business Conduct and Ethics (Code) has been adopted by Jet Airways (India) Limited to comply with applicable law and the rules and regulations of the Stock Exchanges on which the securities of the Company are listed.(6.0) Strategic and Operational ConflictStrategic PlanningLong term.Affect widely.Generic.Org. People and other org. People.Operational PlanningShort term.Narrow/limited sc ope.Detailed.Within orgs. People.Strategic v Operational ConflictJet Airways has some strategic v operational conflict and they areJet Airways (India) Ltd.s three- day conflict with its pilots is costing the nations second- largest airline passengers and whitethorn hamper plans to raise $400 million to buy new planes.The last thing investors want to put one across when the airlines trying to raise funds is a crisis like this, Kapil Kaul, chief executive officer of the Indian unit of Centre for Asia Pacific Aviation, an industry adviser said yesterday. This is a wildfire and they need to put out as soon as possible.Alternate ArrangementsJet Airways is endeavouring to make alternate arrangements on other airlines wherever possible and our airport teams will assist its guests to the fullest extent, Jet Air said.(7.0) RecommendationsAs a result, we can say that Jet Airways is following different types of environmental analysis and strategic planning models to run their organization an d their main strategy is to give service quality to the customer.So from this, we have conclude that Jet Airways is focusing on the services which they are giving to the customers to gain their loyalty and trust and to become the worlds no.1 airline industry.Due to lack of primary research we cant access more information about the company.ReferencesOnline linkshttp//www.jetairways.com/EN/GB/AboutUs/QualityCertification.aspx, contains the strategy of Jet Airways.http//www.jetairways.com/EN/KE/AboutUs/CodeOfConduct.aspx, contains The Code of Conduct.http//www.scribd.com/doc/8718529/Jet-Airways, it contains SWOT analysis and PEST analysis of Jet Airways.http//www.livemint.com/2007/11/25233107/Jet-Airways-strategy-removing.html