Jet Blue Case Study
Jet Blue Airways: Case Study
1. Draw up a SWOT analysis and describe JetBlue’s Strategy.
Strengths
* Low cost airline fares and operations * Experienced management * Creating demand in under-served markets * Customer service oriented (i.e. leather seats with more legroom, in-flight entertainment, better refreshments than competition) * Political backing and support * Competitive pay and benefits increasing employee retention
Weaknesses
* Sustaining low cost fares and operations with a down economy * Unpredictability of the market * Political backing and support * Does not run service to all major airports
Opportunities
* Increased destinations (inside and outside the U.S.) * Growth and increased profitability * Make competition irrelevant * International growth
Threats
* Airport security causing travelers to use other means * Unpredictable fuel prices * Terrorism * Competitors using JetBlue strategies to provide similar service * New competition * Recession / Depression * Unsustainable growth rate * Weather / Natural disasters
2. What are the dangers of rapid growth? Or not growing fast enough?
Rapid Growth
* Overburdening employees which creates excessive turnover * Not enough overhead to meet consumer demand * Product quality and service decreases * Competitors learning from your business mistakes * Emergency need to leverage growth causing higher interest rates on loans * Organizational infrastructure not able to sustain growth * Higher risk
Not Growing Fast Enough
* Missed opportunities * Competitor takeover or buyout * New entrants into market making your business irrelevant * Employee turnover * Consumers taking business elsewhere to meet their needs * Loss of business or financial ruin
3. What are the key success factors for JetBlue?
The most important key success factor for
1. Draw up a SWOT analysis and describe JetBlue’s Strategy.
Strengths
* Low cost airline fares and operations * Experienced management * Creating demand in under-served markets * Customer service oriented (i.e. leather seats with more legroom, in-flight entertainment, better refreshments than competition) * Political backing and support * Competitive pay and benefits increasing employee retention
Weaknesses
* Sustaining low cost fares and operations with a down economy * Unpredictability of the market * Political backing and support * Does not run service to all major airports
Opportunities
* Increased destinations (inside and outside the U.S.) * Growth and increased profitability * Make competition irrelevant * International growth
Threats
* Airport security causing travelers to use other means * Unpredictable fuel prices * Terrorism * Competitors using JetBlue strategies to provide similar service * New competition * Recession / Depression * Unsustainable growth rate * Weather / Natural disasters
2. What are the dangers of rapid growth? Or not growing fast enough?
Rapid Growth
* Overburdening employees which creates excessive turnover * Not enough overhead to meet consumer demand * Product quality and service decreases * Competitors learning from your business mistakes * Emergency need to leverage growth causing higher interest rates on loans * Organizational infrastructure not able to sustain growth * Higher risk
Not Growing Fast Enough
* Missed opportunities * Competitor takeover or buyout * New entrants into market making your business irrelevant * Employee turnover * Consumers taking business elsewhere to meet their needs * Loss of business or financial ruin
3. What are the key success factors for JetBlue?
The most important key success factor for