Jetblue's Attempts Manage Strategic Change. 2) I'm

¶ … JetBlue's attempts manage strategic change. 2) I'm APPLICATION theory company. Therefore, advised start answer definitions/theories/concepts/models apply company concerned. This work referenced a. JetBlue's attempts to manage strategic change JetBlue's business model was innovative from its inception. It was a budget airline which streamlined virtually all conventional amenities from flights. The airline chose to focus on the U.S., rather than challenge the major existing premium international airlines' routes.

"The airline mainly serves destinations in the United States, along with flights to the Caribbean, the Bahamas, Bermuda, and Mexico" (Jet Blue Airlines, 2011, Aviation Explorer). JetBlue, partially because of its willingness to break the mold but also because of demographic changes in the U.S., became extremely successful as a result of its business model. Its low-cost, high-volume, specialized, yet broad-ranging target demographic matched the profile of an increasingly cost-conscious recessionary America. The Internet also allowed budget-conscious travelers to have more autonomy in choosing the cheapest flights available.

"JetBlue was one of only a few U.S. airlines that made a profit during the sharp downturn in airline travel following the September 11, 2001 attacks…Financial results were strong for the airline throughout the 2002 -- 2004 years, and many analysts and journalists lauded the airline for its success" in terms of JetBlue's stock market price as well as the company's performance in the air (Jet Blue Airlines, 2011, Aviation Explorer). JetBlue's major competitor was Southwest Airlines, which also had a similar business strategy.

However, JetBlue offered in-flight entertainment and entertainment amenities that Southwest lacked. It was the first carrier to offer satellite TV to all passengers. JetBlue did not sell snacks, but it did advertise the availability of flight attendants for advice only 'a call away.' (Again, this kept costs low but passenger good will at a high level). However, naysayers to the airline's business model predicted that unlike Southwest (particularly during its early stages of development), JetBlue offered too many amenities and pursued too aggressive a growth strategy to be sustainable.

As fuel costs began to rise, JetBlue posted its first loss in 2005 (Jet Blue Airlines, 2011, Aviation Explorer). JetBlue decided to embark upon a unique strategy to cut costs and return to profitability. It decided to a remove a row of seats from its major carriers, lightening the aircrafts and thus reducing fuel costs. It also reduced flight crew size.

These strategic innovations worked, propelling JetBlue to profitability in 2007, one of the few airlines to show a profit during that difficult time period in recent economic history (Jet Blue Airlines, 2011, Aviation Explorer). Rather than passing the costs onto the customer, raising its fares and potentially damaging its brand, JetBlue resolved to think 'outside the box' of the traditional airline profit model. JetBlue has also worked to brand itself as a 'cool' airline, in a manner well-suited to its youthful clientele.

"In July 2007, the airline partnered with 20th Century Fox's film The Simpsons Movie to become the 'Official Airline of Springfield'…In August 2007, the airline announced the addition of exclusive content from The New York Times in the form of an in-flight video magazine, conducted by Times' journalists and content from NYTimes.com" (Jet Blue Airlines, 2011, Aviation Explorer). It expanded its flights to popular low-cost vacation destinations in the Caribbean, which are popular with JetBlue's core clientele of low-cost travelers.

The changes JetBlue adapted in terms of rising fuel costs indicated that it was able to diagnose the core problems of the airline, and respond to those changes in an effective and innovative manner. It has shown great flexibility as an airline in its responses to changing external political.