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 - – supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, increasing energy prices, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization,
increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, 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.
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.
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.
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.
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.
Superior customer experience
– The customer experience strategy of Jet Airways in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Jet Airways has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Jet Airways has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Highly skilled collaborators
– Jet Airways has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Jet Airways (India) Limited - Brand Building and Valuation HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
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.
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.
Operational resilience
– The operational resilience strategy in the Jet Airways (India) Limited - Brand Building and Valuation Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
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 -
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.
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.
Capital Spending Reduction
– Even during the low interest decade, Jet Airways has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
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.
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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Jet Airways (India) Limited - Brand Building and Valuation HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Jet Airways has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Jet Airways has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High bargaining power of channel partners
– Because of the regulatory requirements, Asheq Razaur Rahman, D.G. Allampalli suggests that, Jet Airways is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Lack of clear differentiation of Jet Airways products
– To increase the profitability and margins on the products, Jet Airways needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Jet Airways is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Jet Airways (India) Limited - Brand Building and Valuation can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 -
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.
Buying journey improvements
– Jet Airways can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Jet Airways (India) Limited - Brand Building and Valuation suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Jet Airways can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Jet Airways in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Jet Airways can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
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.
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.
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.
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.
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.
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 -
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 .
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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Jet Airways in the Finance & Accounting sector and impact the bottomline of the organization.
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.
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.
Environmental challenges
– Jet Airways needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Jet Airways can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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.
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.
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.
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.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Jet Airways will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Jet Airways needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Jet Airways.
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.
