Jetblue Airways: Crafting and Executing Strategy

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JETBLUE AIRWAYS

Paper 1: Crafting & Executing Strategy

Strayer University
BUSS 599: Strategic Business

Table of Contents
Introduction…………………………………………………………………..….…….p. 3 Trends in the Airline Industry……..……………………………….………..…….......p. 4 Jet Blue’s Strategic Intent………..……………..…………………..……..……..........p. 4 Jet Blue’s Financial Objectives and Related Success………………..…..…….....…...p. 5 Strategic Elements…………………………………………..……….…..……........…p.5 Jet Blue’s Strategies for the Future………………………………………….………..p. 6 Summary….………………………………………………………….…………..…...p. 7 References.…………………………………………………………..……………….p. 8

JETBLUE AIRWAYS

INTRODUCTION
JetBlue Airways Corporation got its start on February 11, 2000, and has since grown exponentially from the mere beginnings of $160 million. The company prides itself on standing out from the crown, offering leather seating, personal Televisions, and the option to choose “point-to-point” flights, just to name a few (SlideSahre.net, 2010). They have established themselves in the air world as offering a differentiated product as well as low fares. Their approach to reaching destinations is different than many other airlines, such as using the point-to-point system. The first public offering of their stock was announced in April 2002. They currently service many major cities whose airfares tend to be fairly high, and they offer a lower-cost option for consumers to reach their destinations. They run about 180 flights a day. Jet Blue’s mission statement is “to be the leading low-fare, low-cost passenger airline offering high quality customer service to underserved markets and customer who are looking for the best value in their flight. We have the newest most advanced planes that are reliable, fuel efficient, utilizes paperless cockpit technology, live in-flight satellite TV and security cameras. Our philosophy is to give customers the best price value for their ticket, offering things our competitors don’t offer. At JetBlue we feel that hiring educated employees that are highly motivated and well trained will provide a better experience to the customers. We feel that our high-value, high quality service philosophy will lead the way to our becoming the number one in the industry” (JetBlue Case Study Analysis, 2010).

TRENDS IN THE AIRLINE INDUSTRY
The most current trend in the airline industry is the opportunity to cut cost and increase revenues, as with most other companies in today’s economy. In order to do this, the airline companies are using differentiated products and pricing in order to increase attention and exposure. Technology is also a major trend in the industry, as they use this as a medium in which to reach millions and millions of consumers. Code sharing is one really hot trend in the industry right now, due to the fact that no one airline offers flights to every destination. Code sharing is basically “an interline partnership where one carrier markets service and places its code on another carrier's flights. This offers carriers an opportunity to provide service to destinations not in their route structure. These schedules are considered online bookings for most situations. An exception could be the minimum connecting time, which is sometimes equal to the off-line connection time” (ABC News, June 21, 2005).

JETBLUE’S STRATEGIC INTENT
JetBlue’s strategic intent is to focus on offering high-quality, low fare and a fun atmosphere, while improving the profitability and reducing costs. They do not serve food on these flights, as many do, because they offer point-to-point flights and pride themselves on the quick turnaround. This strategic intent has raised some challenges because they are finding it hard to achieve some goals without compromising others; for example, offering higher quality all-the-while reducing costs.

JETBLUE’S FINANCIAL OBJECTIVES AND RELATED SUCCESS
The financial objective of JetBlue, as mentioned before, was to increase profits and...
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