Topics: JetBlue Airways, Southwest Airlines, Lufthansa Pages: 3 (797 words) Published: June 13, 2011
1) What is JetBlue strategy for success in the marketplace? Doe the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion? # 1 Based on the company's 10-K/A filing with the SEC, JetBlue's strategy for success is product leadership with customer value proposition. As a matter of fact, this is JetBlue's core strategy, "provides high-quality customer service at low fares primarily on point-to-point routes" (JetBlue, 2005). This is also proven by the company's focus on offering alternative choices to customers by serving "underserved and large metropolitan areas that have had high average fares" (JetBlue, 2005). As a result of these strategies, the company has one of the highest load factors (percentage of aircraft seating capacity actually utilized in a given period) in the United States.

2) What business risks does JetBlue face that may threaten its ability to satisfy stockholder expectations? What are some examples of control activities that the company could use to reduce these risks? # 2 One of the most critical business risks that JetBlue faces that may threaten its ability to satisfy stockholder expectations if higher jet fuel prices which contributes to a majority of its operating expenses. The company can control or mitigate the impact of this risk by hedging or entering into contracts locking in on a specific future price for jet fuel. Another risk is foreign exchange risk. A portion of the company's revenues are denominated in currencies other than the US dollar. This risk can be minimized by entering into foreign currency hedging contracts.

3) How can the concept of unit level activities be applied to an airline? More specifically, what are 2 examples of unit level activities for JetBlue? What steps has JetBlue take to manage these unit level activities more efficiently. # 3 Certainly, the concept unit level activities can be applied to an...
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