Case Study - Jetblue Airlines

2964 Words12 Pages
February 20, 2013

JetBlue Airways Corporation Case Study Report
Situation Analysis
History
JetBlue Airways Corporation was created my David Neeleman. His vision was to create an inexpensive, easy way to travel by airplane. He was quoted saying he wants to “bring humanity back to air travel.” David Neeleman was already a seasoned entrepreneur. Two years after dropping out of the University of Utah he established his own business by renting out condominiums in Hawaii. Soon after he established his own travel agency and began chartering flights from Salt Lake City to the islands to bring in more prospective clients to rent his condo’s. In 1984 Neeleman joined forces with June Morris, who owned a large corporate travel agency in Utah,
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(John W. Kelly for KR Consulting, 2008) (JetBlue Airways Corporation, 2012)

Corporate Strategy There are two new strategies that have been developed for JetBlue Airways; a growth strategy and an efficiency strategy. Both strategies have been created out of internal and external analysis.
The growth strategy’s primary goal is to take advantage of recent mergers and failures within the airline industry. When companies merge it takes away some of the competition. Failures in other companies create opportunities for JetBlue to step in and create new business. (John W. Kelly for KR Consulting, 2008) (Corporation, 2013)
The efficiency strategy is developed based on the organizations position within the low-cost segment of the airline industry. To reach this goal an extensive internal analysis is performed with a careful look at the labor force as well as an analysis of the jet fuel prices/purchasing. (John W. Kelly for KR Consulting, 2008)

Strengths and Weaknesses of JetBlue Airways
Strengths
Strong brand recognition and their services are competitive. If you consider revenue passenger miles JetBlue is the sixth largest passenger carrier in the United States and is a widely recognized global brand. The company has received several awards such as “Top Low Cost Airline for Consumer Satisfaction” seven years in a row and also “Best Coach
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