Jet Airways (India) Limited - Brand Building and Valuation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Jet Airways (India) Limited - Brand Building and Valuation
The case documents how Naresh Goyal, chairman of Jet Airways (India) Limited founded the airline and related business group, and built the 'Jet Airways' brand from the early 1990s to 2004. Deploying new aircraft, maintaining young fleet, and focusing on passengers' convenience and service quality, he positioned the airline to the needs of Indian business travellers, garnered more than 40 percent market share and attained brand leadership by 2004. With prudent pricing, cost and yield management, Jet Airways enjoyed healthy profit margins of 20 to 30 percent since early 2000. On the back of strong profitability, market position, brand equity, and booming Indian capital markets and economy, the airline priced its 2005 public issue aggressively but investors' feedback on a red herring prospectus called for brand ownership, which it licensed from Jet Enterprises Limited, a group company promoted and owned by Naresh. The carrier appointed Mumbai-based auditors to value the brand and Jet Enterprises began registering the trademark globally. While Carl Saldhana, Chief Financial Officer, hoped that the auditors would arrive at a formula to value the brand and complete its transfer in six months' time, the trademark registration in some countries hit a snag.
Swot Analysis of "Jet Airways (India) Limited - Brand Building and Valuation" written by Asheq Razaur Rahman, D.G. Allampalli includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Jet Airways facing as an external strategic factors. Some of the topics covered in Jet Airways (India) Limited - Brand Building and Valuation case study are - Strategic Management Strategies, Branding, Emerging markets, Financial analysis, Financial management, Financial markets, Intellectual property, IPO, Regulation and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Jet Airways (India) Limited - Brand Building and Valuation casestudy better are - – challanges to central banks by blockchain based private currencies, there is backlash against globalization, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, geopolitical disruptions,
competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Jet Airways (India) Limited - Brand Building and Valuation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Jet Airways (India) Limited - Brand Building and Valuation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jet Airways, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jet Airways operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Jet Airways (India) Limited - Brand Building and Valuation can be done for the following purposes –
1. Strategic planning using facts provided in Jet Airways (India) Limited - Brand Building and Valuation case study
2. Improving business portfolio management of Jet Airways
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Jet Airways
Strengths Jet Airways (India) Limited - Brand Building and Valuation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jet Airways in Jet Airways (India) Limited - Brand Building and Valuation Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Jet Airways are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Organizational Resilience of Jet Airways
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Jet Airways does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Finance & Accounting industry
– Jet Airways (India) Limited - Brand Building and Valuation firm has clearly differentiated products in the market place. This has enabled Jet Airways to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Jet Airways to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Jet Airways has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Jet Airways (India) Limited - Brand Building and Valuation - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Jet Airways in the sector have low bargaining power. Jet Airways (India) Limited - Brand Building and Valuation has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jet Airways to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Jet Airways is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Jet Airways is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Jet Airways (India) Limited - Brand Building and Valuation Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Jet Airways is one of the leading recruiters in the industry. Managers in the Jet Airways (India) Limited - Brand Building and Valuation are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Jet Airways is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Jet Airways is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Asheq Razaur Rahman, D.G. Allampalli can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Training and development
– Jet Airways has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Jet Airways (India) Limited - Brand Building and Valuation Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Ability to lead change in Finance & Accounting field
– Jet Airways is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Jet Airways in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Jet Airways is one of the most innovative firm in sector. Manager in Jet Airways (India) Limited - Brand Building and Valuation Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Jet Airways (India) Limited - Brand Building and Valuation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jet Airways (India) Limited - Brand Building and Valuation are -
Products dominated business model
– Even though Jet Airways has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Jet Airways (India) Limited - Brand Building and Valuation should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Jet Airways has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Need for greater diversity
– Jet Airways has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Workers concerns about automation
– As automation is fast increasing in the segment, Jet Airways needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow decision making process
– As mentioned earlier in the report, Jet Airways has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Jet Airways even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Low market penetration in new markets
– Outside its home market of Jet Airways, firm in the HBR case study Jet Airways (India) Limited - Brand Building and Valuation needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Jet Airways (India) Limited - Brand Building and Valuation HBR case study mentions - Jet Airways takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Aligning sales with marketing
– It come across in the case study Jet Airways (India) Limited - Brand Building and Valuation that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Jet Airways (India) Limited - Brand Building and Valuation can leverage the sales team experience to cultivate customer relationships as Jet Airways is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Jet Airways (India) Limited - Brand Building and Valuation has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Jet Airways 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study Jet Airways (India) Limited - Brand Building and Valuation, it seems that company is thinking about the frontier risks that can impact Finance & Accounting strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Jet Airways supply chain. Even after few cautionary changes mentioned in the HBR case study - Jet Airways (India) Limited - Brand Building and Valuation, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Jet Airways vulnerable to further global disruptions in South East Asia.
Opportunities Jet Airways (India) Limited - Brand Building and Valuation | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Jet Airways (India) Limited - Brand Building and Valuation are -
Using analytics as competitive advantage
– Jet Airways has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Jet Airways (India) Limited - Brand Building and Valuation - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Jet Airways to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Jet Airways to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Jet Airways in the consumer business. Now Jet Airways can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Jet Airways can use these opportunities to build new business models that can help the communities that Jet Airways operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Developing new processes and practices
– Jet Airways can develop new processes and procedures in Finance & Accounting industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Leveraging digital technologies
– Jet Airways can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Better consumer reach
– The expansion of the 5G network will help Jet Airways to increase its market reach. Jet Airways will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Building a culture of innovation
– managers at Jet Airways can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Finance & Accounting segment.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Jet Airways can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jet Airways can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Jet Airways (India) Limited - Brand Building and Valuation, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Jet Airways has opened avenues for new revenue streams for the organization in the industry. This can help Jet Airways to build a more holistic ecosystem as suggested in the Jet Airways (India) Limited - Brand Building and Valuation case study. Jet Airways can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Jet Airways has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Jet Airways can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Jet Airways can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Threats Jet Airways (India) Limited - Brand Building and Valuation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Jet Airways (India) Limited - Brand Building and Valuation are -
Shortening product life cycle
– it is one of the major threat that Jet Airways is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Jet Airways high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Consumer confidence and its impact on Jet Airways demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Regulatory challenges
– Jet Airways needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Finance & Accounting industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Jet Airways with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Jet Airways has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Jet Airways needs to keep up with the evolution of technology in the Finance & Accounting sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Jet Airways in the Finance & Accounting industry. The Finance & Accounting industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Jet Airways business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Jet Airways can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jet Airways can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Jet Airways (India) Limited - Brand Building and Valuation .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Jet Airways (India) Limited - Brand Building and Valuation, Jet Airways may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Weighted SWOT Analysis of Jet Airways (India) Limited - Brand Building and Valuation Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Jet Airways (India) Limited - Brand Building and Valuation needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Jet Airways (India) Limited - Brand Building and Valuation is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Jet Airways (India) Limited - Brand Building and Valuation is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Jet Airways (India) Limited - Brand Building and Valuation is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Jet Airways needs to make to build a sustainable competitive advantage.