1. Chapter 4: Strategic Management

21. Industry and Competitive Environment Suppliers Customers New Entrants Industry competitors Rivalry among existing firms Substitutes

23. Industry and Competitive Environment of JetBlue JetBlue Customers Business travelers Leisure travelers Competitors Rivalry: Price New entrants: Few Substitutes: Video conferencing Suppliers Planes: Airbus Jet fuel: many suppliers such as Exxon Mobil Labor No union representation Ample supply of pilots and flight attendants Regulators FAA Airport authorities Strategic Partners No airline partners Initial partnership With satellite TV provider Adapted from Exhibit 5.5

30. Generic Strategies and Scope General player whose product or service features command industry average prices but whose costs are significantly below the industry average Example: Wal-Mart Niche player with average Prices and below-average costs That focuses on a segment of customers or a specific geography Example: Columbia Sports General player whose product or service features command premium prices and whose costs are at the industry average Example: Sony Niche player with average costs but commanding premium prices that focuses on the high end and customers in a general or specific geography Example: Morgan Motors Scope General Focused Differentiation Cost leadership Strategy

31. Strategy Implementation Strategy Structure Systems Shared Values Skills Staff Style