JetBlue Airways Corporation, JetBlue for short, is one of the biggest air travel company in the United States. JetBlue is the 6 largest airline in America. The company is headquartered in the Long Island City neighborhood of the New York City, with its main base at John F. Kennedy International Airport. It also maintains corporate offices in Cottonwood Heights, Utah, and Orlando, Florida. During it operation, JetBlue has faced up with many tragedies and problems. Typically is the problematic flight happened in Valentine day February 14, 2007. Most people thought that misfortune even puts an end for the airline. Nonetheless, JetBlue not only survives, but it growing, earns a profit and become the favorite airline of many people. So we wonder …show more content…
“. To answer this query, the first step we have to define what is needs ,wants and demands of the customer.’’ Human need is states of felt deprivation ‘’. For instance, we need the basic thing to support life like food, clothing, shelter, and safety, more complex is social needs for belonging and affection and the last is individual needs for knowledge and self-expression. And when we attach need to culture and individual personality, we have wants. For example, Vietnamese needs food but wants noodle, rice, glutinous-rice wine. Whereas Japanese people needs food but want sushi, ramen, and sake wine. Then if people have buying power, wants turn into demands. Given their wants an ability to gain it, people demand product or service that satisfy them the most. For a better understanding of the deferents between these three concepts is remembering in your mind that everyone needs something, but they can desire, unlike things to fulfill the same needs. In conclusion, wants are just feelings, you must have necessary resources to turn those wants into demands. Now back to the main point, what is the needs,wants and demands of JetBlue clients. As we can easily recognize that the fundamental need …show more content…
2. Moving on to the second question ‘’ Describe in detail all the facets of JetBlue's product. What is being exchanged in a JetBlue transaction? ‘’. People donate their time, money, effort to book a flight successfully, they also exchange the opportunity to use service of some other airline to experience all the facets JetBlue’s market offering. And JetBlue has done a great job to not let their precious customer down. In some aspect, JetBlue’s service is considered ingenious cause they have made effort to distinguish their service in a better way to their competition. They give people a unique and pleasant service in exchange for their cash. Now let point out in detail all the facets of JetBlue's product that make they become a better option for the traveler. First is the features and services on the flights. JetBlue gives the customer three more inches of legroom than the average airline seat. If that even cannot meet the need of some people they can pay a litter extra about ten dollars for having more space and a flatter recline position. Moreover, there are comfortable seats with leather lining, give the customer the feeling that they are experiencing a luxury service.Furthermore, in addition to snacks and free soft drinks, flyer is able to enjoy some special food product offered by JetBlue as Terra Blues chips, immaculate Baking’s Chocobillys cookies, and Dukin’s Donuts coffee. We can sense the deliciousness from the name. More important, the customer does not feel
JetBlue Airways, the latest entrant in the airlines industry has gone through the initial stages (entrepreneurial and collectivity) of the organizational life cycle rapidly under the successful leadership of David Neelman. JetBlue Airways is currently in the formalization stage of the life cycle where in it needs to create procedures and control systems to effectively manage its growth. Also as it proceeds to grow further to reach the elaboration stage, JetBlue needs to continue to align itself with the environment in order to maintain its sustained growth.
Suppliers generally have a moderate to high bargaining power within the industry due to the limited number of suppliers which forces aviation companies to choose from the number available and accordingly to accept their prices. In fact, fuel is the second highest cost for aviation companies. There are highly depended on supplier’s prices and the availability which indicates on a relatively high bargaining power of suppliers. In addition, there are high switching costs which are strongly in favor of the suppliers and means that the company experiences an increase in operating costs when switching to another supplier as flying another type of aircraft leads to additional costs (maintenance, training etc.).Aircrafts are vulnerable to delays due to the location of gate locations which leads to a decrease in utilization and therefore to an increase in costs.
JetBlue is a pro at utilizing its resources and structure. As such, JetBlue has proven to be efficient in its internal environment. Out of the physical and human aspects of the internal environment JetBlue focuses on human as the key factor. JetBlue views its employees and their skills as the key to a successful structure by emphasizing elements of loyalty, satisfaction, service quality, productivity, capability, and output quality. JetBlue reflects a culture of employees that understand how to retain customers and can perform under various situations with an equally varied consumer base. In addition to human capital, JetBlue uses physical assets to set them apart from the rest. The airline fleet of JetBlue is very precisely selected. From its new Airbus A321 to its Airbus 320, JetBlue prides itself on comfort and luxury. Other perks offered by JetBlue include lower priced airfare compared to that of its competitors and in-flight entertainment options that succeed its competition. Internal weaknesses include a
JetBlue is an American airline company whose headquarter is located in the New York City. They are a low-cost airline who is rapidly growing in the Unites States. According to Wikipedia, “David Neeleman founded the company in February 1999, under the name "NewAir.” Many of their approach come from Southwest Airlines include low prices airfares. However, they differ in the amenities offered to the customers.
JetBlue Airways has been affected by key external factors. The political factor that has affected JetBlue is the resentment towards union formation. Currently, JetBlue is a non-union company. This helps it keep its fixed costs low. Further, there are positive
The objective of this research paper is to describe how the 21St Century utilized concepts , such as corporate social responsibility in relation with triple bottom line, to shift the airline industry into becoming a forward-thinking industry embedding sustainability into their core of business operations to create shared value for business and society. I will define corporate social responsibility and areas of social responsibility in the airline industry at the beginning of the paper and proceed with how it ties into the bottom line concept. Next, I will give brief examples of airlines such as JetBlue Airways, and British Airways how they apply these concepts into their mission. In conclusion, I will express my own thoughts about how different generations based their purchases and career decisions on these concepts.
JetBlue has always identified itself as a customer service company first, focused on providing customers a unique experience on every flight and with every interaction with JetBlue. (Annual report, 2005)
1. There are a few trends in the US airline industry. One is consolidation, wherein existing players merge in an attempt to lower their costs and generate operating synergies. The most recent major merger was the United Continental merger, which is still an ongoing affair, but has created the largest airline in the United States by market share (Martin, 2012). Another trend is towards low-cost carriers. In the US, Southwest has been a long-running success and JetBlue a strong new competitor, but in other countries this business model has proven exceptionally successful. The third major trend is the upward trend in jet fuel prices, and the increasing importance that this puts on hedging fuel prices and capacity management (Hinton, 2011).
JetBlue has been one of the most successful airlines since it first entered the industry in December of 1999. Founder, David Neeleman, set out to succeed by offering low-cost air travel in hopes of perpetuating his services to as many people as he could across the US. He was very adamant about having a very customer oriented business that catered to the needs of all. In doing so he wanted to emphatically promote his obligation to safety, caring, integrity, passion, while allowing the customers to have fun while traveling. There motto helps portray Neeleman’s belief stating “You Above All”. His primary goals had been to follow Southwest’s objectives of offering low rates to customers, focusing on customer’s needs and comforts while distinguishing itself with their amenities. Neeleman’s other goal was to establish his low-cost leadership strategy by concentrating his airline in a large popular metropolitan area that already is already correlated with high airfare (Peterson, 2004). He then began operating based out of the New York metropolitan area at John F. Kennedy International airport with his secondary locations in Washington D.C., Boston and Los Angeles.
The financing decision which is aimed at securing the purchase of the new 100-seat Embraer E190 aircraft would allow JetBlue to enter smaller markets while maintaining low operating costs, and increase flight frequency on existing routes. The low fares offered by JetBlue would allow it to attract new passengers who might otherwise not fly. Earnings from this market segment is expected to contribute to the profitability and positive financial performance of the company
1. JetBlue's strategy for success in the marketplace is based on the cost leadership strategy, as outlined by Michael Porter (QuickMBA, 2010). This strategy relies on delivering products or services at a lower price than competitors, and using that cost leadership as the basis by which to attract customers. JetBlue essentially built their business model after Southwest Airlines, and the company's founders had experience with Southwest that helped them learn about the business. The JetBlue approach to cost leadership is focused on the mass market.
Jet-blue Airways is American low cost airline head quartered near New-York city. It’s foundedin August 1998 by David Neeleman with Joel Peterson as a chairman and David Barger as apresident and CEO. By late 2006,like some other airlines, JetBlue faced some softening demand and high cost due to the increase in fuel prices. Barger realizes that JetBlue needs to take further steps to slow its rate of growth. Barger was not sure about the reductions across E190 and A320. The E190 showedpromising growth opportunities and challenges for JetBlue. At the same time, the A320 wasconsidered as proven plane that had succeededover past 6 years. Most of the airline industries were using hub-and-spoke system and point-to-point services. Due to this service, South West Airlines showed consistent profits. After September 11th, the airline industry experienced trouble due to attack. Looking at the history of Jet-blue, it started with just 10airplanes in 2000 and by 2011 the company planned to have 290 planes in service. To support customers, Jet Blueprovided
Jet Blue set up its main head quarters in New York's JFK which is one of the biggest airports in the world. This was a strategic plan due to the lack of domestic flights going in and out of JFK, that minimized there competition which allowed them to continue on a path which led them to there success. Through targeting specific markets and concentrating their efforts on those markets they gained a loyal
•Neeleman offered passengers a unique flying experience by providing new aircrafts, simple and low fares, leather seats, free Live TV at every seat, pre-assigned seating, reliable performance, and high-quality customer service. JetBlue focused on point-to-point service to large metropolitan areas with high average fares or highly traveled markets that were underserved. JetBlue’s operating strategy had produced the lowest cost per available seat mile of any of the major U.S. airlines in 2001—6.98 cents vs. 10.08 cents.
2. Describe in detail all the facets of JetBlue’s product. What is being exchanged in a JetBlue transaction?