Jet Blue Case
JetBlue
Contents
Memorandum 3
Summary of Strategy Assessment and Identification of Strategic Issues 3
Key Strategic Issue, Options and Recommendations for Action 3
Best Option Recommendation 4
I. Case Update (Exhibit 1) 5
Bibliography 7
II. JetBlue’s Strategy in Detail (Exhibit 2) 8
Mission/Purpose/Vision 8
Goals/Objectives 9
Major Policies 9
III. JetBlue’s SWOT Analysis (Exhibit 3) 11
IV. Analysis of JetBlue’s Financial Performance (Exhibit 4) 12
2010 vs. 2009 Sources and Uses Analysis 12
2008-2010 Horizontal and Vertical Analyses of Income Statement 13
2008-2010 Ratio Analyses 14
VI. Assessment of JetBlue’s Strategy (Exhibit 6) 17
Built-in Contradictions 17
Most Relevant Strengths, Weakness, Opportunities & Threats 18
Key Industry Success Factors 19
Competitive Edge 20
Financial Performance 20
Where are we now? 22
VIII. JetBlue Recent Awards (Exhibit 8) 25
Memorandum
To: David Barger (CEO), JetBlue
From: EBA Strategy Consulting Inc.
Summary of Strategy Assessment and Identification of Strategic Issues
After carefully analyzing JetBlue’s strategy we have found several built-in contradictions, which are outlined in Exhibit 6. While the current strategy of differentiation and maintaining low operational costs has been a contributing factor to overall profitability, it does not address the competitive advantage sustainability. Easy product and service imitation, along with highly competitive industry environment, will force JetBlue to continuously look for ways to reduce operational costs and increase revenue, while maintaining the competitive advantage that JetBlue has capitalized on during the last decade.
In Exhibit 3 you will find a SWOT analysis, which summarizes strengths, weaknesses, opportunities and threats that JetBlue will have to address. JetBlue’s key strength and its competitive edge, currently lies in product and customer service
Contents
Memorandum 3
Summary of Strategy Assessment and Identification of Strategic Issues 3
Key Strategic Issue, Options and Recommendations for Action 3
Best Option Recommendation 4
I. Case Update (Exhibit 1) 5
Bibliography 7
II. JetBlue’s Strategy in Detail (Exhibit 2) 8
Mission/Purpose/Vision 8
Goals/Objectives 9
Major Policies 9
III. JetBlue’s SWOT Analysis (Exhibit 3) 11
IV. Analysis of JetBlue’s Financial Performance (Exhibit 4) 12
2010 vs. 2009 Sources and Uses Analysis 12
2008-2010 Horizontal and Vertical Analyses of Income Statement 13
2008-2010 Ratio Analyses 14
VI. Assessment of JetBlue’s Strategy (Exhibit 6) 17
Built-in Contradictions 17
Most Relevant Strengths, Weakness, Opportunities & Threats 18
Key Industry Success Factors 19
Competitive Edge 20
Financial Performance 20
Where are we now? 22
VIII. JetBlue Recent Awards (Exhibit 8) 25
Memorandum
To: David Barger (CEO), JetBlue
From: EBA Strategy Consulting Inc.
Summary of Strategy Assessment and Identification of Strategic Issues
After carefully analyzing JetBlue’s strategy we have found several built-in contradictions, which are outlined in Exhibit 6. While the current strategy of differentiation and maintaining low operational costs has been a contributing factor to overall profitability, it does not address the competitive advantage sustainability. Easy product and service imitation, along with highly competitive industry environment, will force JetBlue to continuously look for ways to reduce operational costs and increase revenue, while maintaining the competitive advantage that JetBlue has capitalized on during the last decade.
In Exhibit 3 you will find a SWOT analysis, which summarizes strengths, weaknesses, opportunities and threats that JetBlue will have to address. JetBlue’s key strength and its competitive edge, currently lies in product and customer service
Bibliography: Samadi, Nima. (September 2010). IBISWorld Industry Report 48111b - Domestic Airlines in the US. Comprehensive report outlining the airline industry along with market research.