Jet Blue

Topics: Customer service, Southwest Airlines, Low-cost carrier Pages: 10 (3460 words) Published: April 22, 2013
In order to prosper in business, the product or the service provided must be of value on its own and must posses the capacity to stand on its own. The modern market is characterized by extreme competition from numerous companies and organizations dealing with the same products and services. In order for the products of a particular company to standout, they must be of high quality. Value adding is a way of differentiating a company from the pack. This paper through qualitative evaluation of JetBlue Airways case study is going to look at some of the reasons as to why value adding is an important marketing strategy.

JetBlue airways, as stated by Bodouva & Bodouva (2004), began its operation in February 2000 with the inauguration of services between Ft. Lauderdale in Florida and J. F. Kennedy airport, New York. Since then, the company is estimated to have served more than twelve million passengers. Currently, JetBlue operates over 164 flights per day in addition to serving over twenty destinations in nine states as well as Puerto Rico (Bodouva & Bodouva, 2004). Even though JetBlue operates in a highly competitive environment, its continued profitability has earned it remarkable loyalty among customers as well as its employees. JetBlue Airways is one of the best financed start-up airlines in the United States aviation history. Its initial capitalization is estimated at over $130 million (Holloway, 2008). The initial marketing strategy of the company was to combine common sense and technology in addition to setting out an objective of introducing humanity into airline travels as well as making flying an enjoyable experience. So as to achieve this, JetBlue aimed at being the first airline that did not employ paper-based recording system. The company introduced computers and information technology in all sectors of its operations. In addition to efficiency, the company focused on service to their customers. The company’s main objective, as far as service is concerned, is to become customers’ advocates based on the perception that customers have the right to be provided with high quality services at affordable cost. JetBlue airways started from a humble beginning. The founder of JetBlue, David Neeleman, joined top management of southwest airways, and as a result of his aggressive, restless hands-on personality and always seeking for new innovative ways, he created tension and jealousy among other members of the Southwest Airways top management team. In 1994, Neeleman stopped working for the Southwest Airways. After leaving Southwest Airways, Neeleman launched WestJet, a carrier that became extremely successful. He developed a novel e-ticketing reservation technique referred to as Open Skies (Bodouva & Bodouva, 2004). Based on his experience in aviation, Neeleman decided to develop a new and larger airline. This idea was motivated by the fact that tastes of customers change and therefore it would be important to adapt persistently to these changes. Neeleman intended to develop the new airline based on Southwest’s marketing strategy of stimulating demand in underserved markets with low fares (Bodouva & Bodouva, 2004). This strategy was to be achieved through the use of highly competent employees and aircrafts. Another strategy of accomplishing this objective was through flying bigger planes for longer distances in addition to offering an enhanced overall passenger experience. Another strategy of achieving success at such an early stage was excelling in the aspects that really distinguish the brand from others at a significantly low cost. Comfort, courtesy and punctuality were the guiding principles of the Airways. These principles were extended to all levels of the company’s operation, externally and internally and have resulted in the creation of a distinct customer appeal. Value Adding

In the modern market, customers look at purchases from a cost-benefit analysis. They evaluate...
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