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Competitive Analysis
Porter’s Verdict
The Porter framework shows that the airline industry is exceedingly unattractive.
Nevertheless, JetBlue has quickly attained profitability while maintaining its unusual low cost,
low-fare, and high-quality service strategy.
Rivalry is High
Consolidation notwithstanding, rivalry is high as numerous competitors remain in the
airline business. Major airlines such as Delta, United and American offer a substantially similar
flying experience to the customer, even though they try to differentiate by focusing on features
such as frequent flyer programs and legroom. Given their hub-and-spoke systems, these airlines
tend to fly to the same cities and tend to appeal to business travelers who have the least price
sensitivity. This commodity-like quality intensifies rivalry by engendering price-based
competition. Additionally, the industry is extremely sensitive to economic cycles. When the
economy contracts business travel declines, which is......

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Approximate Word Count: 394
Approximate Pages: 2 (250 words per double-spaced page)

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