Jetblue Case Analysis

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JetBlue Airways airline was established by David Neeleman as a low-fare airline with high-quality customer service. His goal was to create an airline that was innovative for the current market. Their main focus was to provide service to areas that were underserved as well as to large cities with overpriced fares. He aimed to establish a strong brand that differentiated itself from its competitors by being a safe, reliable and low cost-airline. Neeleman managed to achieve this partially by hiring friendly, helpful, team-oriented, and customer-focused people. JetBlue is capable of offering low-cost flights due to their low operating costs. In order to achieve the cost advantage, they initially operated a single-type aircraft, the Airbus…show more content…
Subsequently, a newly created airline would definitely face trouble having to compete in this mature industry specifically with other low-cost airlines that have learned to implement high-quality service while providing the lowest prices possible. It appears that one of the available opportunities for a newly created airline would be to take on a differentiation strategy and provide its customers with unique features that larger competitors simply do not have. The bargain power of buyers is fairly high, especially within the low-cost airline industry. Customers continuously seek to purchase tickets at the lowest price possible while suppliers tend to look for ways to differentiate their service among other competitors. Moreover, the widespread use of the Internet enables customers to find the most affordable fare quickly and conveniently. Definitely, the buyers are price sensitive as far as the airline industry goes, and they are often willing to substitute services provided by one airline to purchase a ticket for less from another airline. The bargain power of suppliers is high mainly because the airline’s success depends greatly on their suppliers. The switching costs are tremendously high for airlines which makes the suppliers position even stronger. Additionally, there is not much competition in the airplane manufacturing industry on account of Boing and Airbus as being the main manufacturers that dominate the industry. The threat of

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