Jetblue - Strategic Analysis

Topics: Low-cost carrier, Airline, Southwest Airlines Pages: 5 (1706 words) Published: December 3, 2011
Strategic Analysis
JetBlue Airways

Executive Summary
This report on JetBlue identifies how they have become an innovator in the airline industry by targeting customers who value a low-cost, customer conscious airline. They have formulated strategies that have enabled them to operate in a highly efficient and effective manner while realizing the importance of aligning their strategies with their environment. The report thoroughly discusses the strengths and weaknesses that the company possesses in their internal environment, followed by an in-depth analysis of the threats and opportunities of existing within their external environment. The strategy of the company is analyzed in comparison with both their internal and external environment in order to formulate possible strategic recommendations. Proper implementation strategies of the recommendations are also given to identify how the company can be better aligned with its environment and continue to grow as a highly successful company in the airline industry.

Strategic Analysis of JetBlue Airways

This report is an extensive analysis of JetBlue’s overall corporate strategies and how well they are aligned with their internal and external environments. It will focus on the company’s strengths, weaknesses, opportunities, and threats that exist as well as identify possible ways in which they can improve the overall efficiency and effectiveness of the organization. As a relatively new airline JetBlue has redefined the industry by utilizing a combination of low-cost and differentiation as their core strategy. Since the company’s inception in 1999 they have become an innovator of new ideas and have led other airlines to follow some of their own practices due to the overall success of the company. JetBlue has succeeded as an airline that targets travelers who want a low-fare, high-value, customer service oriented flight to and from specific locations in popular metropolitan areas. To comprehend the success of the company, there are key factors that must be analyzed thoroughly in order to understand what allows them to be a competitive, profitable, and successful organization. To begin to understand JetBlue’s success as a newcomer to the industry you have to analyze their internal and external environments in comparison to their overall strategy. Strengths

JetBlue’s strategy is focused on keeping costs low, while also utilizing new technology and guaranteeing customer satisfaction. The company’s strengths are what set them apart from other airlines. JetBlue’s long list of strengths begins with their pricing strategies. The customer value that is created by the company has proven to be a huge part of their success. In order to be a cost leader they started by purchasing only one model of aircraft which allows for easier and less expensive repairs and maintenance costs. Their low cost strategy also stems from the idea of eliminating any unnecessary operating costs, such as having paperless cockpits and not offering meals during flight. Differentiation has also allowed them to gain a notable advantage over the competition by realizing that customers are the most important part of the company. Customer satisfaction is a top priority within the company and all employees are instructed to make sure that all of their customers are happy at all times. The ways in which they have distinguished themselves include assigning seats with more legroom and satellite TV for all seats, offering complementary snacks and beverages, and also promoting online ticket sales and flight check-in. The organizational culture within the company is one that exhibits values, integrity, and empowerment which is a strength that most of the competition does not possess. Employees are hired based on their competencies and motivation to work in a customer-oriented environment. The company is also committed to their employees’ satisfaction and rewards are given to those who show...
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