Free Market Entry and Channel Strategies Essay Sample

Companies are more likely to be successful when operating within a market niche. However, some business may expand their sales awareness and business stability through venturing into new business. JetBlue should therefore develop a market strategy which will carry out analysis of competitors and possible potential customers.  This can be done by looking at their services and analyzing whether it has competitors, or whether the resources will be available to provide these services, among other factors.

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As part of the airline company succeeding, that is, JetBlue should use some of these strategies to venture into these new countries. When joining any new market, which the company is not conversant with, the management needs to gather relevant information from existing companies. This is referred to as the joint venture. JetBlue should join hands with the company in the Mexico and in United Kingdom which is known to provide air line services (Brading Strategy, 2010). This helps, especially when the company is not entitled to provision of so much capital. This capital may be needed to purchase equipment which is essential in the provision of the services.

Market Entry Strategies

In February 2007, it was reported that the JetBlue was meant to enter into alliance with Irish flagship. This would have facilitated the transfer of both airlines customers in an easier and efficient way.  This would also enable customers to connect between two airlines using one ticket, which is the link from Aer Lingus to JetBlue in New York City. Ticket booking for these connections is provided by both airlines. This can be applied as a strategy in inventing in a new country such as Mexico and UK.

Pricing for the provision of their services is a factor to be considered. JetBlue should provide services that are pocket friendly to the customers. Although this should be the case it should not provide services which will make it run at a loss. From 2002-2009 JetBlue was recorded as the company which was making profit irrespective of negative factors facing the air travel. This should be applied in the new countries in order to create new loyal customers in these new places. These are the strategies which should be used in the entry into new countries as their new markets.

Marketing Rationale Explained

Developing a brand strategy for your products is one of the most tempting steps carried out in marketing. This costs businesses a lot when trying to come up with. However it is one of the most important steps in the creation of the company identity. This is because the brand will be continuously repeated during communication in many ways throughout the life of the business. Developing the brand strategy for a company like the JetBlue involves several factors.

The brand must be well defined. This is the act of building a foundation for all other components to build on. This serves as the measuring stick for evaluation of all marketing materials and strategies. JetBlue should define its brand by first, building a foundation on what services they want to provide in their new markets which include the Mexico and parts of the United Kingdom (MMc Learning, 2009). This will base up all their strategies which should follow in the life span of the company provision of their services.

There should also be determination of the brand’s objectives. The objective of any airline company is to provide means of transport over the airways. This could be aimed at improving on trading activities, to encourage more tourists among other aims of putting such companies into their respective places in the market. JetBlue should put the objectives of developing the airline company in these countries. This will make the company work towards achieving their aim of venturing into UK and Mexico (Salah, 1994).

The JetBlue Company should focus on who they are aiming at in the market. This is focusing on the target audience and the power which is processed by their services the audience. By setting their target, this will put them in a good position to strengthen the effectiveness of their products to the customers. This will in turn bring in the satisfaction of the consumers on the services they provide. This also enables the company to create loyal customers. JetBlue has over the years been able to make profits irrespective of the growing negative attitude towards the airline companies. This is because it has created loyal customers around USA. JetBlue should employ this principle in their targeted areas like, Mexico and UK.

Risk Analysis
JetBlue should carry out a research in potential barriers towards achieving success in their new identified areas. This is what will enable the company’s product achieve the intended purpose in its market. The research will enable the company do the analysis of the main barriers and which it will come into contact with when they provide their services. This will simply make the company aware of these challenges, and the measures it will take in dealing with these possible challenges.

JetBlue should also carry out the analysis on the image the company has in these countries. The image which a company has determines whether their products or services will be accepted by the people who are targeted as the customers. This will at least give the company a clue on how their services are going to be accepted in these areas.

For any new product or service to reach the market and get accepted, it has to be modified in a way that it suits the customers’ needs. The relevant authority or the management should choose the best mix which will modify the product in such a way that it will deliver in the market. McCartney presented them as the 4Ps of marketing. These are the factors to consider in order for the JetBlue Company to succeed in their new targeted countries that is, Mexico and UK.

The first P to be considered is the product or the services. JetBlue should consider the quality of the products they want to take in the new countries, the benefits which comes along with the services they want to provide in air travels, and features of the services they are to provide. Many targeted consumers make their choices from these attributes related to products or services.

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The price at which the services are going to be accessed is the other marketing model. It should be set reasonably such that, both parties are not straining in either production or accessing the product (Brading Strategy, 2010). JetBlue has also been able to provide credit facilities to different parties. This should also be applied by the company in the new markets Mexico ad UK.

Promotion is the other marketing mix which is also referred to as the communication mix. This includes factors such as the advertising, publicity, selling with the word of mouth among others. JetBlue should promote its business in the new countries by advertising in the media or any other places. This will make their products familiar to everyone, not to be a new term to citizens. The place where customers are going to get access of these services in these new countries should be communicated. These are steps which JetBlue should follow to make their services in the new markets-Mexico and UK- to be successful.

The Channel Strategy Outline

Market Competitors

There aremany airlines in the British airline industry, but British Airways is the best in the country. Unlike consumers in Mexico, the consumers in the United Kingdom do not mind paying the price for the best quality. The British people want class and experience. The market is in a growing stage and the cost structure in this industry is high because the users of the service are ready to pay the price for the experience. As there is only one British airline, the competition in this industry is low, which is favorable.


Except for the British Airways, the other airlines are small and do not capture the market with a strong percentage. The suppliers cannot threaten for forward integration because there are a number of airlines in the industry, which they cannot compete. The products are not very unique, and the market is important for the suppliers. The bargaining power of suppliers is low, this is favorable.


The potential for great exposure and repeat sales is ideal for the United Kingdom. There are buyers in the United Kingdom who would be eager to invest in the future of JetBlue. The United Kingdom has a prosperous culture. Its citizens are prosperous and enjoy spending money on high-quality products. The suppliers of this service are in big numbers in the market. The bargaining power of buyers is low in the British Airline industry (Luigi, 2011).


Several British airlines are prevalent in the United Kingdom, and the cost of switching substitutes is not significant. The consumers in this region demand experience and quality. They will switch if they think that the other airline is providing good quality even though the price is high compare to other airline. The performance of the substitutes plays a major role in determining whether the buyers will go towardthe substitutes or not.

New Entrants

The British airline industry has achieved the economies of scale. The services offered in this industry do not differentiate much, but the customers here are brand loyal. They will choose the airline that will provide quality irrespective of the price. The capital requirements in this industry are strong and the switching cost of suppliers is not significant. Access to distribution channels is a bit difficult in this industry; therefore, the threat of new entrants is not high (Porter, 2008).


The industry assessment has shown that the Mexican airline industry is not very attractive, but with the penetration pricing strategy, it will be able to establish well in the market. The British airline industry is attractive and will allow JetBlue to enter the market and establish its position in the two countries. The industry assessment of the United Kingdom airline industry shows that the industry is attractive, but the company needs to make sure that the quality of its services is not compromised because the United Kingdom citizens are ready to pay the price, but they want experience with class. The company needs to modify its service for the two countries because the demographics of the people differ in the two countries. The pricing strategy has suggestedwhile keeping in mind the customer ability to pay and the market trends.  With these strategies, JetBlue can successfully operate in these two countries.


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