Jetblue's Strategy for Success in the Marketplace

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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. There is no direct translation to the value proposition for cost leadership, but the closest thing would be operational excellence. The reason that operational excellence is the path to cost leadership is simple in order to offer flights at lower prices than the competitors, JetBlue needs to have a lower cost structure. The company supports this with a number of different tactics. JetBlue avoids unionization of its workforce. This keeps down labor costs, which are one of the most significant costs for any airline. The second element is that JetBlue attempts to utilize secondary airports, as landing rights at these airports are significantly cheaper than landing rights at major airports. The company was even able to utilize this strategy to gain access to Kennedy Airport in New York, since there were slots open for domestic routes into that predominantly international airport. With efficient operations, the company can have lower

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