Research Paper for Jetblue

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.

With all their involvement in social media this has definitely paid off. They have attracted, “over 1.6 million followers, with more than 12,000 tweets.” Through the effective use of video, blogs, and social networking many customers have become familiar with JetBlue and the company website.

The airline currently known as JetBlue airlines was created in 1999 by Utah entrepreneur David Needleman with the goal of bringing humanity back to the airline industry. Needleman started an innovative airline called Morris Air, and was the first airline to successfully utilize a ticketless reservation system, and the basic structure was to provide consumers with excellent service but low fares. This airline reported making over 20 million in profits in 2003, but decided to sell this new airline to Southwest airlines, and signed a five year no competition agreement (JetBlue airlines, 2008). The design of the new JetBlue airline would use aircraft with one cabin class, and incorporate an in flight entertainment system with over 24 satellite television channels and web services, as well as movies in the headrest of every seat. The choice was also made not to serve meals, but offer gourmet chips and refreshments. The cabin also offers larger leather seats with increased legroom, larger overhead bins, and JetBlue was one of the first airlines to convert to a cashless system for drinks and food. The company began flying in 2000, with only two leased Airbus A320’s, and its first route was from New York’s John F. Kennedy airport to Ft. Lauderdale, Florida. The airline was given 75 takeoff slots in JFK airport, and has been working there way up to one of the most successful airlines. The airlines goals were to beat their competitors by 65%, and increase the positive

The JetBlue flight took off from Fort Lauderdale at 9.45am local time following an inauguration ceremony. The plane was given a water salute as it taxied onto the runway, a ceremony used for notable flight events.

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

Jet Blue is a shinning star in the gloomy airline industry. Jet Blue has been showing great earnings and growth since its incorporation in 2000. Jet Blue uses innovative strategies to further their success in a market, which has been showing nothing but losses across the board.

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

The second major strategic issue facing JetBlue is that it needs to attract customers. Initial customer response has been strong, a function of low fares, strong customer service and new airplanes. The company's first year growth objectives have it trying to go from none-existence to filling fifty-three flights per day. This will require an extensive marketing effort for each new market in which it operates, especially as the company is not affiliated with any airline groupings that might drive business from other carriers.

For JetBlue there is a need to ensure that the brand is seen as different. The firm has developed differentiation in the way that the service is offered. From the beginning the firm has used the entertainment options as a way of setting themselves apart (JetBlue, 2012). The service level is reflected in the way the brand has been marketed to support differentiation and show the airline in a different light, For example, in one advertisement which starts of as a typical airline the audiece hears

Founded by the discount airline veteran David Neeleman in 2000, JetBlue Airways has quickly become one of the largest discount airlines in the United States. Starting primarily by serving the East Coast, the airline has since expanded throughout the country and entered the international market. The reasons for its early success are numerous: JetBlue entered the market with one of the largest levels of liquidity of any start-up airline; it met the needs of customers’ whose primary concerns are price and route; and it successfully defined its brand and differentiated itself

The purpose of this paper is to evaluate the business strategy of JetBlue Airways. JetBlue was founded by David Neeleman in 2000 and quickly became one of the largest discount airlines in the United States. It was started in the east coast primarily and expanded throughout the country and entered the international market soon after that. JetBlue received the “#1 Airline Brand” rating10 even while keeping its advertising costs significantly lower than Southwest Airlines. Jet Blue’s talent in formulating and executing effective strategies has enabled the company to rapidly grow in the domestic and international market base.

With the JetBlue Airways experience, passengers enjoyed free amenities such as watching live satellite TV, listening to XM satellite radio, brand name snacks, coffee and drink. Passengers can also experience paperless ticketing, assigned seating with more legroom. These experiences have helped to streamline JetBlue’s business strategy as being the best customer service in the airline industry.