External Environment Analysis

External Environment Analysis JetBlue Airways Corporation (JetBlue) is a union that has cerebrate on low-priced airline transportation service. It is also unitary of the top major airlines dominating the Domestic Airlines industry. To develop a better strategic melody plan the companys external argumentation market and the effect it has on the business continuity plan must be analysis as well as the general, industry, and contest environments. Another issue bear on companies is the role business ethics plays in gathering competitor intelligence. External Business Market The Domestic Airlines industry is affected by key external drivers, such as bodily profit, world price of crude oil, per capita disposable income, inbound trips by non-US residents, and municipal trips by Unites States residents (IBISWorld, 2011). These drivers also affect JetBlue Airways. JetBlue also affects these external drivers with its low-cost business structure. In the United States domestic flying is summate to a large portion of business clients. Companies experiencing high wage and strong business activity are more presumable to pay for travel. The Domestic Airlines industry moves in line with bodied activity as businesses experience decline and increases so result the Domestic Airlines industry.

The industry is largely affected by corporate profit. Even though JetBlue has primarily target leisure travelers the company is increasingly business travelers. The business traveler is a customer who during tough economic times is looking to reduce business expense associated with business travel. As the companys direct(a) costs increases profitability decreases. One factor affecting operating costs and profitability is the price of crude oil. Unfortunately, companies cannot pass the faultless cost of oil to their customers and must decrease their profit gains. JetBlue is not the exception and through its use of hedging is exposed to fluidity issues. JetBlue hedges on a... If you want to get a full essay, baseball club it on our website: Orderessay

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