Case-3: JetBlue Airways: A cadre of New Managers Takes Control.

Topics: JetBlue Airways, Southwest Airlines, Lufthansa Pages: 11 (2096 words) Published: August 13, 2014
Case-3: JetBlue Airways: A cadre of New Managers Takes Control. Introduction:
JetBlue Airways Corporation, often stylized as jetBlue, is an American low-cost airline. The company is headquartered in the Long Island City neighborhood of the New York City borough of Queens. Its main base is John F. Kennedy International Airport, also in Queens, and maintains a corporate office in Cottonwood Heights, Utah. The airline mainly serves destinations in the United States, along with flights to the Caribbean, The Bahamas, Bermuda, Barbados, Colombia, Costa Rica, the Dominican Republic, Jamaica, Mexico, Peru, and Puerto Rico. As of October 2013, JetBlue serves 84 destinations in 24 states and 12 countries in the Caribbean, South America, and Latin America.

Figure: JetBlue Airways

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Creating relations between case study-3 and Crafting and Executing Strategies model:
The Crafting and Executing Strategies model is given below:

External
Analysis
Strategic
Fit

1.Vision
Competitive

1.Strengths

2.Mission
Advantage

2.Opportunities

3.Objectives
Internal
Analysis

Patterns of
Action
1.Competitive
2.Supplementary
3.Tailoring

3. Threats

4.Globalization

4.Weakness

5.Diversification

Figure: Block Diagram of Crafting and Executing Strategies Model.

Competitive Advantage:


Being Relevant: JetBlue airlines focus on being relevant to passengers in ways that mattered most. This is what brought the success to those carriers and made them the preeminent names in aviation as the industry was growing. There was a great deal of attention paid to schedule timings – arrivals and departures times most valued by fliers. JetBlue pays a great deal of attention on schedule timings – arrivals and departures times most valued by fliers.



What customer’s value: The Nonstop flight is an endangered species. It’s an example of how the airlines operate their businesses based on their internal systems, and not based on what customer’s value. For example Travel cost at jetBlue airlines is low.

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Execution
of
Strategies



Customer needs: JetBlue makes great efforts to meet the customer needs in many ways. JetBlue welcomed the business travelers by adding extra leg room options without charging an arm and a leg and global computer reservations systems for complex ticketing. It also added expedited security screening to match the carriers who previously catered to the business crowd. They have a newer fleet than most carriers, and a much more amenable culture for service personnel than many airlines. Their free onboard DirectTV at every seat is a major hit, few competitors have matched. Dave Barger, JetBlue’s chief executive says that 30% of their traffic is now business travelers, aka the higher yield passenger.



JetBlue’s turnover time is low (ranged from 20 to 30 minutes).



JetBlue airlines use information system to keep costs down.

Figure: Internal view of JetBlue Airbus

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Mission, Vision and objectives:
JetBlue’s Mission Statement
JetBlue currently files its mission statement under an annual report heading of “Our Value Proposition.” This mission statement appears as more of a slogan and is quickly dispensed in one sentence: “Our mission is to bring humanity back to air travel” (“JetBlue Annual Report, 2010). However, as the expanded mission description and incorporated vision attest, successive statements further expand on the corporate goals. This four statements read as follows: 





High Quality Service and Product
Low Operating Costs
Brand Strength
Strength of Our People

JetBlue’s 2005 annual report features a quotation from then-CEO David Neeleman that serves as a summation of company vision: “As JetBlue continues to grow, we know our commitment to friendly, helpful service, combined with amenities customers want, will continue to keep JetBlue #1 in the eyes of our customers” (“JetBlue Annual Report,” 2005).

JetBlue’s...
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