Threats from Existing Competitors – Extremely HighHistorically, the airline industry is one of the most competitive fields today. The large number of players in the sector combined with falling profit margins is intensifying competition. High barriers to exit and mergers between competitors make it extremely difficult for the sector to grow. Buyer Threats – High The presence of substitutes and low brand loyalty creates substantial buying power in the market. Air travel consumers today know the market better than ever. The explosion of the online ticketing site continues to grow and grow. Consumers can compare prices from almost any airline on any route. Perfect knowledge of customers today gives them significant purchasing power since all airlines are forced to compete on prices. JetBlue will continue to face many important pricing decisions as the company grows. Threats from Suppliers – High The small number of aircraft manufacturers in the airline industry creates low purchasing power for all airlines, including JetBlue. Jetblue's bargaining power is limited as most key production factors, including fuel and aircraft, are sold by uncompetitive suppliers. JetBlue has developed working relationships with manufacturers Airbus and Embraer to maintain the cost savings the airline requires. Threats from Substitutes – Moderate (Continuing) Even in today's dynamic business environment, there are few substitutes for air travel, particularly in the United States. If traveling shorter distances, consumers may decide to drive rather than fly. However, this is not feasible for long distance and overseas travel. The majority of JetBlue's flight operations are based middle of paper ......ment of the traveling population heading to tropical destinations along the U.S. West Coast, where JetBlue controls little market share. In addition to expanding its own routes, JetBlue can form strategic alliances to provide seamless service to destinations not directly served by the airline, including international destinations. JetBlue continues to lead the industry in technological innovation. They have managed to reduce their costs in the long term by investing in new innovations that will improve the efficiency of their aircraft and provide more services to customers in the air and on the ground. To thrive in the competitive global marketplace, airlines must maximize production and efficiency while remaining customer-focused. JetBlue's competitive strategy focuses on a high level of innovation, customer satisfaction and aircraft productivity