So, in a few words, differentiation ranged from quality to comfort and to responsiveness to customer. Combined with the fact that all these services are offered at extremely competitive prices, the company has a strong position on the market.
2. It is quite obvious that the company managed to implement a unique strategy which allowed it to prosper on the market and to fight the large airline companies. The question we need to ask, however, is whether it actually has a competitive advantage. In my opinion, it does.
I am asserting this provided with the elements we have so far. In the beginning, the company was able to implement its differentiation- low cost strategy in order to attract its first customers and to build the brand's credibility. This was done using strong investments in the company's fleet and in innovations.
However, that period is gone now and the company has added to its…...
Review of strategies and a recommendation for the best strategy for the organization
Implementation plan
Functional tactics
Action items
Milestones and Deadline
Resource allocation
Key success factors
Budget and forecasted financials
Break-even chart
Risk management plan
Contingency plans for identified risks
JetBlue is one of the leading airline carriers in the United States. The airline company has long been at the forefront of ensuring that passengers are exposed to quality service and products. Since the advent of the company in 1998 there has been a marked increase in the growth of the airline. This growth has caused the company to carefully evaluate all aspects of the business and carefully develop strategies that aim at meeting the needs and the goals of the company. To this end an implementation plan was developed to assist the company has it continues to grow and expand.
The implementation plan is designed to ensure that Jet Blues mission of bringing humanity back to…...
ith slim margins, JetBlue and other airlines must discover and capture market share in the most profitable routes. Not only does this serve the route-building strategy of JetBlue, but it allows the company to be more profitable than its rivals. Thus, there needs to be good external information gathering capabilities in addition to internal information systems.
3. Unit-level activities are those that are conducted at the unit or work group level. JetBlue is essentially a one-service company, but it does have different units. The company has a finance department and the role of this arm is to contain costs, especially those pertaining to financing, leasing and fuel costs. An example of an activity for this unit would be negotiating the lease of new airplanes. Other unit activities that JetBlue has include operations, training, accounting and marketing.
A marketing campaign would be another unit-level activity that JetBlue has. The campaign would consist…...
JetBlue
1c) JetBlue struggled through the events in the case to manage its capacity to align with the demand. The airline service is perishable, such that when flights are unable to fly, that reduces the total capacity in the system. The nature of flight also makes it difficult to make up that capacity loss later -- if there are 30 seats left on a flight to Little Rock, that does not help make up for a capacity shortage of 15 customers on a flight to Orlando. This is where the service failure escalated for JetBlue. With a lack of excess capacity in aircraft, pilots and crew, JetBlue found itself having to pre-cancel flights to give it the opportunity to restore capacity and demand equilibrium.
JetBlue also struggled with the integrated communication mix. The company in particular had problems managing the public relations side of the business. While it has a consistent advertising…...
" Certainly, this is the essence of the question, as it is the heart of the company's corporate culture. What exactly is the HP Way? How do employees communicate with each other? If this is to be analyzed, there needs to be a clear description of the issues involved in this culture (HPPA, 2011).
Another issue is the discussion of "weaknesses" revealed by Carly Fiorina's involvement. Again, while the author quite clearly describes her shortcomings in terms of her actions and integration with the corporate culture, there is no focus on which elements of HP's culture itself were weak or inadequate to deal with this challenge. Why was the culture not strong enough to survive Ms. Fiorina's lack of good management skills? Instead, the description here focuses rather upon the fact that Fiorina ultimately did not adhere to the corporate culture of the company, as indicated by Dobuzinskis (2010).
A company's mission statement should reflect its "unique purpose and reason for being" (Zain Books, 2014) Now, realistically, companies exist to earn their shareholders a return, and the mission of the company is therefore to increase shareholder wealth (Friedman, 1970). But this is not something that can be sold to the other stakeholders of a business, especially not the employees. They need to feel that they are contributing to something greater than themselves, as part of their motivation. JetBlue is an airline, and the work it does is to fly people around the country. The best understanding of the company's mission is:
JetBlue has a mission to transform air travel for Americans, bringing dignity back to American skies.
Consider the nine characteristics of a good mission statement. The above statement is broad is scope, encompassing the sum total of the company's business. It does not generate a range of feasible…...
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References
Chatman, J. & Jehn, K. (1994). Assessing the relationship between industry characteristics and organizational culture: How different can you be? Academy of Management Journal. Vol. 37 (3) 522-553.
many of its rivals. Its high debt load contributes to its cost disadvantage. he corporate culture does not give it a competitive advantage. JetBlue's culture is easily replicated by any other airline and provides no particular benefit that the customer appreciates. hey lag Southwest in this regard. he human resource practices work to make the firm functional, but again JetBlue does not do anything unique that adds sustainable value to the firm.
JetBlue's six strategies for 2008 were to "reevaluate the ways the company was using its assets; reduce capacity and cut costs; raise fares and grow in select markets; offer improved service to corporate travelers; form strategic partnerships; and increase ancillary revenues.
he company was able to make ground in strategic partnerships via its equity sale to Lufthansa, which required them to bring a Lufthansa executive on their board. his also represented a move towards redeploying key assets, including the…...
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The company was able to make ground in strategic partnerships via its equity sale to Lufthansa, which required them to bring a Lufthansa executive on their board. This also represented a move towards redeploying key assets, including the JFK hub. The firm also was able to utilize its LiveTV asset better as well. The company reduced its routes and began to focus on Orlando and other vacation cities. Fares increased as well, although in the early part of the year the cost of jet fuel rose significantly as well. Other new service fees were introduced.
JetBlue has successfully implemented most of its six strategies. Whether these strategies will have a positive impact on the firm or not remains to be seen. The changes bring JetBlue's operations more in line with those of a legacy carrier, especially with regards to increasing both fares and ancillary costs to the customer. Beyond the massive increase in fuel prices, the company was unable to contain other costs in early 2008. Marketing, maintenance and "other" operating expenses all skyrocketed. This reduced their operating margin. Operating expenses overall increased 28% while revenues only increased 25%. The company's move towards a higher cost structure was met with lower load factors. The airline industry is subject to high price elasticity of demand, which makes it difficult for airlines to increase their prices, even when they themselves are subject to higher fuel costs.
Over the long-term, it seems that JetBlue will have difficulty sustaining their success. The company does not appear to have the pricing power that its management believed it to have. This means that margins will continue to be squeezed. The airline's poor performance in 2008 was also a direct result of their lack of fuel hedging for that year. The financial figures for late 2008, however, will show a declining fuel price environment and therefore may be healthier. However, JetBlue's overall strategy is that of a differentiated provider and they are finding it difficult to maintain either that or a low cost strategy. They appear to have committed the mistake -- especially with their 2008 strategic changes -- of being neither differentiated nor low cost. Their partnership with Lufthansa marks a move towards the former but not a particularly definitive move. JetBlue's strategies failed in part because the firm is unwilling to choose a definitive strategic direction.
JetBlue Airlines Case Analysis
JetBlue Case Analysis
Discuss the trends in the U.S. airline industry and how these trends might impact a company's strategy.
The time period the case study covers and the ensuing years have proven to be among the most turbulent ever for the airline industry on a global scale. Beginning with the reduced availability of capital and the lack of liquidity for expansion and the slowing rate of economic growth for business and leisure travel the latest global recession has been particularly difficult for the airline industry and its participants to navigate. The following are the key financial factors that the case study indicates as being the most responsible for the turbulence in this industry over the long-term. Continually escalating fuel and operating costs which fluctuate significantly over time force fuel hedging or the practice of purchasing large quantities of fuel on speculation of price increases or decreases (orbes, Lederman,…...
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Fuel hedging is also being used by JetBlue to support its primary strategic intent or vision of being a highly differentiated, high-end airline at a Southwest Airlines price point. All the elements related to underscoring an exceptional experience from the leather passenger seats to the in-flight television service are deliberately designed to support the strategic intent of being a premier airline and a competitive price. JetBlue is attempting to create an defend a very unique place in the industry by concentrating on delivering exceptional customer experience sat a very competitive price, while also earning the loyalty of business and leisure travelers.
Discuss Jet Blue's financial objectives and whether or not the company has been successful in achieving these objectives.
JetBlue has exceptionally high financial and operational objectives, as is evident in the case study that is the basis of this analysis. Please see the Appendix for Table 3: JetBlue Ratio Analysis, for a five-year analysis of their performance across five different series of ratios. As of the fiscal year ending December 2010 the company had seen improvements in activity and profit-related financial ratios. The unfortunate events of the 2007 Valentines' Day (Waite, 2007) proved to be so difficult to manage at the organizational level given the pressure from citizens, the media and the customers and their attorneys, the CEO had to step. Further, it was becoming apparent that the cost reduction strategies designed around fuel hedging initiatives, combined with lean production and process workflows, was not going to be enough to offset the rapidly rising fuel prices JetBlue was contending with at the time. Due to these factors the company's
etBlue: Fighting for a Bigger Slice of the Pie in the Sky
In the highly competitive commercial air travel business, earning a profit and earning the loyalty of customers generally go hand in glove. And as to profit, airlines that offer the most destinations and the most customer perks, snacks, and promotions are not necessarily the most profitable. etBlue has a mountain to climb to be able to compete head-to-head with the dominant companies -- American Airlines, Delta, and Southwest -- but the #5-ranked airline is gearing up to expand its services, its destinations, and it is launching strategies that could place it higher in the airline pecking order. This paper reviews etBlue's merger options and potential partners, its entrance into the retail apparel market, its expansion opportunities, its quest to find and train highly skilled marketing talent, and its crusade to transcend the ordinary commercial flight into a uniquely interesting…...
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JetBlue's operations revolve around 15,000 employees and an average of 800 flights daily. The company currently services 82 cities, 25 states, and 15 countries, including Latin America and the Caribbean. JetBlue's fleet contains Airbus A321, Airbus A320 and EMBRAER 190. These chosen aircraft provide more seats and larger cabins than competing airlines. JetBlue is the only airline in the United States to offer the "The Customer Bill of Rights." This document provides for customer's compensation in particular situations that involve the irregularities of air travel. The company is diligently working towards finding new ways to maintain a low cost structure, expansion and providing the customers with exceptional amenities and service (SEC Form 10-K, 2013).
Jetblue Weakness
The airline industry is one that has rapidly evolved both with regards to technology and product offerings. This paper argues that technological advancements, deregulation and competitive pricing and marketing strategies are what have driven change in regards to JetBlue. The paper goes on to explain how each of these factors affects and drives change in the other three. Deregulation occurred to increase competition; competition in turn affects innovation in marketing and pricing as well as technology. This process however has no specific order with regards to where the change starts as innovation and competition can effect the market at large. One primary weakness of Jetblue is the advent of the Internet. The brick and mortar travel agencies became basically obsolete as more and more passengers began choosing the cheaper online alternative. This new technology cut out the middleman, and also allowed airline industries to diminish their own costs by…...
Foremost, they must be offered numerous training programs, which are both for the benefit of the employee (increases his confidence) as well as for the organization, which, through investing in its human resource, will be able to offer services at superior quality standards.
However an affective culture is not desirable within a professional business environment, the employees should be encouraged to address any complaints or dissatisfactions. In addition, the company should offer specialized assistance and counselling to those who need it. The counselling sessions could be addressed to employees facing personal difficulties or those which have been traumatized by an unfortunate airplane event.
All the human resource strategies are aimed at increasing employees' satisfaction on the job, unifying their individual goals with the organizational goals, motivating them to increase their performances and support JetBlue in reaching its overall objectives.
In regard to their customers, the airline company must improve the communications and…...
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References
Case Study: JetBlue Headquarters, Forest Hills, New York
Monin, N., 2004, Management Theory: A Critical Reading, Taylor and Francis Inc.
JetBlue's strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion?
The strategy for JetBlue's success in the marketplace is described in the company's 10-K/A filling. Their goal is to 3 establish JetBlue as a leading low-fare, low-cost passenger airline by offering customer's high-quality customer service and a differentiated product.' (JetBlue,2005) By doing this, they are trying to 3 stimulate market demand while maintaining a continuous focus on cost-containment and operation efficiencies.' (JetBlue, 2005) Based on the filing, JetBlue relies on product leadership customer value proposition. The four key elements to their strategy are:
Stimulate demand with low fares
Emphasize low operation costs
Offer point to point flights to underserved and/or overpriced large markets
Differentiate our product and service (JetBlue, 2005)
Due to the strategies, JetBlue has been able to grow largely as a company and become…...
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References
CliffsNotes.com. Activity-Based Costing Activities. Retrieved on January 11, 2013 from Noreen, E.W., Brewer, P.B., Garrison R.H. (2011).
Managerial accounting for managers (2nded.). New York, NY: McGraw Hill. ISBN: 978-0-07-352713-0.
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…...
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References
Bomkamp, Samantha. (2011). JetBlue brings back 'All You Can Jet' passes. AP. Retrieved
JetBlue Airways strategies
Economical, social moral impact strategies jetblue airways.
JetBlue Airways is an airline company that has its' headquarters located in the city of New York from where it operates an approximately six hundred and fifty daily flights going in and out of sixty one different United States' cities. According to a recent survey conducted by J.D. Power and Associates, the airline has been able to maintain its' reputation for six years consecutively as one of the low-cost carriers which offers highest customer satisfaction in terms of its' service, another survey also ranked JetBlue Airways as the most Eco-friendly Airline both in 2008 and 2009 (igas, 2001, 12-23).
This essay intends to spell out the economical, social and moral impact of strategies for JetBlue Airways.
Economical impact
JetBlue Airways is most revered for the impact it brought to the economy with its' reduced airfares and great customer services. Before the airline commenced its'…...
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References
Davies, R., (2004), A history of the world's airlines, Oxford U.P, 56
Hudson, K., and Julian P., (1979) Diamonds in the Sky: A Social History of Air Travel. London: Bodley Head, p 23-34
Vision, Mission, Competition
The new mission statement for JetBlue is "To become a top 4 airline in the United States, differentiated by exceptional customer service."
The new vision statement will be "JetBlue will lead the renaissance in American air travel, restoring the industry to the days when people looked forward to flying."
The mission statement is specific with respect to market share, and geographic scope, and it also provides a pathway for how JetBlue hopes to get there. Service is one area where an airline can be truly differentiated, and while JetBlue is also a low cost airline, it knows that delivering great customer service improves brand loyalty, and often does not cost that much extra.
The vision statement is bold -- and visionary -- and can be inspirational in nature. By tapping into the forgotten romance of air travel, both customers and employees can be inspired by this vision. The vision also ties…...
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References
Hazel, B., Stalnaker, T., Taylor, A. & Usman, K. (2014). Airline economic analysis. Oliver Wyman. In possession of the author.
JetBlue 2013 Annual Report. In possession of the author.
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