JetBlue

1242 Words3 Pages

You know the feeling you get when you look at the person dressed in the same designer outfit next to you, knowing you paid half as much for it? Choose jetBlue and that exceptional feeling will come right back to you. Operating as a safe, reliable, value-added airline focused on customer service and high quality travel, jetBlue’s prized mission is to compete as a low cost carrier while integrating great customer service. Do not be fooled by their low prices and operational efficiency, though. From leather seating to their customer bill of rights, from courteous flight crews to entertainment consoles, jetBlue offers inexpensive, stylish service unlike other contenders. Cost Leadership Competing through cost leadership, jetBlue spreads fixed costs over a large number of flights and seat miles, operates their company’s fleet roughly twelve hours a day (the longest in the industry), applies state-of-the-art scheduling services to minimize aircraft ground time, and hedges fuel orders in an optimal fashion to incur less operating costs as a whole. Economies of scale exist through these proficiencies, reducing costs and driving profit margins, while the operation of only two jet models (A320 and E190) expands cost-based advantages from aircraft production and service from the well-developed learning curve. Combining this "efficient asset utilization strategy" (Datamonitor, 2011) with jetBlue’s core customer service competencies makes jetBlue a tough, sustainable competitor in the domestic airline industry (shown in Appendix A). In a recent letter to shareholders, President David Barger announced, “We will continue to build a low cost culture by maximizing asset utilization and running efficient operations” (Letter to ... ... middle of paper ... ...ability to jetBlue is answered by the technological advancements of the time. These advancements have challenged jetBlue's leading edge and could potentially impair sustainability over time and terminate this structural advantage. Company Outlook While the company business strategy may be working presently, over time, minute comparable financials, ease of product imitation, and multiple core competencies will send jetBlue aircrafts and business crashing. Currently, jetBlue defines themselves as cost leader competitors but also differentiates their service with a unique business model. Attempting too many competencies is both difficult and rarely successful. The solution to cease this integrated struggle involves perfecting one core competency and increasing support among investors to amplify market share and provide a dominant competitive edge.

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