Jetblue Airways
STRATEGIC MANAGEMENT & POLICY
COMM 4005 / SP1
MODULE 3
JETBLUE AIRWAYS:
A CADRE OF NEW MANAGERS TAKES CONTROL
JETBLUE AIRWAYS
Question 1
David Neelman’s original strategic vision was to ‘bring humanity back to air travel’ through combing low fares of a discount airline carrier with the comforts of a small cozy den in people’s homes.
David’s strategic vision is a good one, but the strategic objectives, strategy development, and implementation and execution should be modified to address both the internal environment and external environment, such as; current technological, economic and industry conditions. The new executive leadership should be looking at ways to adjust and improve upon the strategy-executing process in order to improve JetBlue’s bottom line. This could be accomplished using the most powerful and widely used tool for systematically diagnosing the principal competitive pressures in a market and assessing the strength and importance of each of the 5 –forces model of competition (Porter’s competitive forces).
Question 2
The key elements of JetBlue’s strategy in 2008 are as follows;
* Re-evaluate the ways the company was using its assets * Reduce capacity and cut costs * Raise fares and grow in select markets * Offer improved services for corporations and business travellers * Form strategic partnerships * Increase ancillary revenues JetBlue has chosen to attract customers in sufficient volume to earn profits through the following; * Offering customers low prices on air fares * Introduction of refundable fares and offered discounts to corporate travellers * Partnership with Oasis Day Spa to offer various spa services to travellers * Partnership with Google Maps so that flights could be tracked live on the airline’s website * Partnership with other airlines to make it easier for travellers to connect to more places * Provide travellers with access to a recreational area for
COMM 4005 / SP1
MODULE 3
JETBLUE AIRWAYS:
A CADRE OF NEW MANAGERS TAKES CONTROL
JETBLUE AIRWAYS
Question 1
David Neelman’s original strategic vision was to ‘bring humanity back to air travel’ through combing low fares of a discount airline carrier with the comforts of a small cozy den in people’s homes.
David’s strategic vision is a good one, but the strategic objectives, strategy development, and implementation and execution should be modified to address both the internal environment and external environment, such as; current technological, economic and industry conditions. The new executive leadership should be looking at ways to adjust and improve upon the strategy-executing process in order to improve JetBlue’s bottom line. This could be accomplished using the most powerful and widely used tool for systematically diagnosing the principal competitive pressures in a market and assessing the strength and importance of each of the 5 –forces model of competition (Porter’s competitive forces).
Question 2
The key elements of JetBlue’s strategy in 2008 are as follows;
* Re-evaluate the ways the company was using its assets * Reduce capacity and cut costs * Raise fares and grow in select markets * Offer improved services for corporations and business travellers * Form strategic partnerships * Increase ancillary revenues JetBlue has chosen to attract customers in sufficient volume to earn profits through the following; * Offering customers low prices on air fares * Introduction of refundable fares and offered discounts to corporate travellers * Partnership with Oasis Day Spa to offer various spa services to travellers * Partnership with Google Maps so that flights could be tracked live on the airline’s website * Partnership with other airlines to make it easier for travellers to connect to more places * Provide travellers with access to a recreational area for