I have to agree with Lake Alice. NetJets day in the sun is ending.
Santulli's original fractional concept was brilliant and that accounted for the company's original growth spurt, but the sad fact is there were no barriers to entry. Anyone could (and did) get into this business and provide a very close substiture for the service NetJets offers. It is sad that the original idea was the only one Santulli had. The majority of the current growth is in Marquis, which Santulli didn't think of, but at least had the intelligence to recognize as a profit opportunity. Unfortunately, Santulli's one great idea was accompanied by a management style best suited for exploiting sneaker-manufacturing workers in a third world country, and this attitude will be the downfall of NetJets.
Just like most organizations that rely on one great idea eventually decline (think Atari, GM, IBM, the legacy airlines, etc.), so too will NetJets. It won't fail all at once. Afterall, people still buy GM cars But Schumpeter's "creative destruction" will be clearly demonstrated again, as another competitor amasses the critical size to compete with NetJets. Just as most businesses success are limited by the skills and assumptions of their management, Santulli reached his peak several years ago and has been riding his history rather than creating a competitive edge for the future. Very sad - but not uncommon.
Santulli's original fractional concept was brilliant and that accounted for the company's original growth spurt, but the sad fact is there were no barriers to entry. Anyone could (and did) get into this business and provide a very close substiture for the service NetJets offers. It is sad that the original idea was the only one Santulli had. The majority of the current growth is in Marquis, which Santulli didn't think of, but at least had the intelligence to recognize as a profit opportunity. Unfortunately, Santulli's one great idea was accompanied by a management style best suited for exploiting sneaker-manufacturing workers in a third world country, and this attitude will be the downfall of NetJets.
Just like most organizations that rely on one great idea eventually decline (think Atari, GM, IBM, the legacy airlines, etc.), so too will NetJets. It won't fail all at once. Afterall, people still buy GM cars But Schumpeter's "creative destruction" will be clearly demonstrated again, as another competitor amasses the critical size to compete with NetJets. Just as most businesses success are limited by the skills and assumptions of their management, Santulli reached his peak several years ago and has been riding his history rather than creating a competitive edge for the future. Very sad - but not uncommon.