Jet Blue Strategic Management

Only available on StudyMode
  • Download(s) : 285
  • Published : May 1, 2013
Open Document
Text Preview
Table of Contents

Context…………………………………………………………………………………………………………………………………………………………………3

Synopsis……………………………………………………………………………………………………………………………………………………………….3

Time Line……………………………………………………………………………………………………………………………………………………………..4

Key Players…………………………………………………………………………………………………………………………………………………………..5

Main Issues………………………………………………………………………………………………………………………………………………………….6

SWOT Analysis……………………………………………………………………………………………………………………………………………………..7

Porter Five Forces…………………………………………………………………………………………………………………………………………………9

Recommendations.…………………………………………………………………………………………………………………………………………….10

Critical Assessments of Recommendations………………………………………………………………………………………………………..10

Decision……………………………………………………………………………………………………………………………………………………………..11

Implementation…………………………………………………………………………………………………………………………………………………11

Implementation Table………………………………………………………………………………………………………………………………………..13

Summery……………………………………………………………………………………………………………………………………………………………14

Appendix……………………………………………………………………………………………………………………………………………………………15

SWOT Analysis……………………………………………………………………………………………………………………………………………………15

PLEs Analysis………………………………………………………………………………………………………………………………………………………16

Recommendation & Decision…….……………………………………………………………………………………………………………………….19

Implementation………………………………………………………….………………………………………………………………………………………19

Implementation Table………………………………………………………………………………………………………………………………………..20

Context

JetBlue a customer service oriented Airline Company that operates in the US. JetBlue established newly 13 years ago as a small airline company with a developing growth rate to be one of the major airline companies in the US.

Synopses

David Neeleman, a Salt Lake City entrepreneur, founded JetBlue in Feb. 1999. Several JetBlue executives as well as Neeleman were former Southwest Airlines employees, which is currently one of JetBlue’s competitors. In JetBlue’s first year it operated 64 flights and flew around 12 destinations in four states.

JetBlue is a low-cost airline in the United States that uniquely follows both the low-cost and the differentiation strategy. It was one of the airline companies that gained profits in the 9/11 crisis, while the entire airline industry was suffering losses. The basic strategy of JetBlue was low-cost attained through less workforce that is more productive, efficient use of technology, and new airplane models that required less costly maintenance and burned less fuel. Although JetBlue is successful in its service it seems to only have one way of revenue which might affect its competitive advantage over other airlines that have multiple ways of revenue.

The key to JetBlue’s strategic downsizing of costs was achieved through increasing the productivity through technological advancements such as automating their production processes and the implementation of a standard model airplane, with lower maintenance and training costs simultaneously.

Despite these steps taken towards reduced costs, JetBlue had previously been considering introducing new plane models, which could be used to fly into mid-sized cities during off-peak times using the already existing routes. This could have been a challenge for their low-cost strategy as was their success in grabbing the attention of their competitors and thus, the launching of new discount carriers. These posed questions as to whether or not JetBlue would come face-off with other major airline carriers as well as the other discount carriers in a race for expansion into different parts of the world.

Timeline

|Year |Description/ Important Event | |1983 | -Neeleman forced to close down Pineapple Express because it went bankrupt | |1984...
tracking img