JetBlue Airlines Case Analysis JetBlue airlines is known as America’s favorite low-cost airline provider. JetBlue focused on providing customers with low cost flights, great customer service, and an overall great experience. This company believed in new innovative ideas including at home reservation agents, paperless cockpits, and providing customers with complimentary snacks and drinks. These competitive advantages set JetBlue airlines apart from other major and low-cost airlines. This company focused on the mission statement, to bring humanity back to air travel (Dess, Lumpkin, Eisner, McNamara). JetBlue airlines started operations in August 2000 with JFK airport as the main base location. This company was on average providing 750 daily …show more content…
JetBlue should have cancelled all flights and taken the necessary action to provide their customers with what they needed till the weather cleared and flights were active again. Instead JetBlue made a horrible decision to keep flights active till the last minute and the company was not prepared for the repercussions. JetBlue airlines has four major business problems they need to focus on to stay successful and grow the business. Employees need to be cross-trained, baggage claim center, disaster plans, and limit the involvement of other businesses. Now that we have discussed JetBlue airlines background we are going to look into their competitive environment.
Competitive Environment JetBlue airlines does hold a competitive advantage in the airline industry. They provide customers with low-cost flights, great customer service, and a memorable experience. In our current economy traveling is growing, between personal and business flights, the need for the airlines is always going to be present. JetBlue’s tends to its shareholders which include but are not limited to the customers, employees, investors, and suppliers. By providing the shareholders with a great experience at JetBlue airlines, success will be easier to obtain. According to Wolff, Jones, Lee (2006), “While many organizations are using innovation to drive organic growth, a number of leading companies have been using value-driven innovation as a key source of sustainable advantage” (pg. 5). By
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.
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
Question #1: Why do you think JetBlue became active on more social media platforms following the February 2007 incident?
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 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.
JetBlue Airways Corporation was formed in August 1998 as a low-fare, low-cost but high service passenger airline serving select United States market. JetBlue's operations strategy was designed to achieve a low cost, whilst offering customers a pleasing and differentiated flying experience. JetBlue has had a successful business model and strong financial results during that period, and performed well in comparison to other airline companies in the US during the period between 2000 and 2003. It had been the only other airline apart from Southwest airlines, to have been profitable during the aftermath of the September 11, 2001
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
JetBlue is known as the airline that promises, and also delivers. JetBlue delivers Air flight of the future, with new jets and the lowest fares available. JetBlue has proved to the world that one can have it all. JetBlue’s Airways started in 2000 with the mission as stated by the founder Neeleman: “to bring humanity back to air travel by offering passengers low fares, friendly service, and high-quality product” (Ford, 2004, p.139). JetBlue has five core values that they operate by on a daily basis, which includes, safety, caring, integrity, passion and fun. JetBlue continues to adapt to the changing environment, and its community by evaluating the risks and
There are two major strategic issues facing JetBlue. The first is that the company is growing very rapidly. This brings with it a number of critical challenges, such as recruitment and selection, maintaining the corporate culture, and maintaining high service levels. Secondary goals associated with this are maintaining safety standards, finding profitable routes to occupy and avoiding a unionization drive. Growing a company this rapidly is possible given the strong initial financing that the company has, but challenging in that the faster the airline grows, the more difficult it will be to find the right people and the right routes. The company can grow rapidly while plucking the low-hanging fruit but these tasks become more difficult over time.
Moreover, according to John Owen, JetBlue had prepared the initial registration statement with security and exchange commission (SEC) for the IPO on September 11, 2001. However, based on the September 11 attacks, they delayed IPO before it came into force. In fact, not only the terrorist attacks on September 11, 2001, but several events happened negatively affected the global economy during the period of going public for JetBlue. For example, the contagion of bird flu was quite severe during taking flights, which definitely influenced the demand of flights. The increasing oil price also raised the basic cost in any transportation industry. Another negative condition could be the economic downturn, including crash of the dot-com bubble and financial crisis in Asia. From this point
JetBlue had made significant progress in establishing a strong brand by seeking to be identified as a safe, reliable, low-fare airline that was highly focused on customer service and by providing an enjoyable flying
JetBlue was established in 1999, and was the third airline start-up for founder and CEO David Neeleman. Neeleman managed to gather $130 million, the most ever raised for a start-up airline, from investors that included Chase Capital and financier George Soros. With the large start-up capital he purchased new Airbus A320 jets equipped with satellite TV, a first in the industry. In 2004 the company ordered an additional 30 new A320 aircrafts from Airbus. The airlines first flight was from New York to Fort Lauderdale in 2000. During the year, the airline added nine more destinations in California, Florida, New York, Utah, and
Because what JetBlue did was stop thinking about looking right customers for their business, this way they devoted himself to transform the company to focus on its customers, so used all the basics of marketing which seeks that customers have an important value in the company so that they can better understand consumers and achieve satisfy in the best way, this is the ideology that drives this company, the most important thing for them is that the customer are happy with JetBlue and does not change the company for any reason, and then for the next plans they came back.