JetBlue Airways Corporation – You above all
JetBlue Airways Corporation is a premier non-union airline headquartered in Long Island City of New York, and operating out of John. F. Kennedy airport as its primary base. Several of their initial employees, including founder David Neeleman, were former employees of Southwest Airlines. They brought the low-cost flying experience from their former workplace, but married it to better array of amenities. That helped JetBlue carve a unique identity which competed with major carriers for customer service and rivaled low-cost carriers on price points.
The company background info as of April 2014 is as follows:
Name: JetBlue Airways Corporation (NASDAQ:JBLU)
Industry: Air travela
CEO: David Barger
Headquarters: Long Island City, NY
Employees: 15000+
Revenue: USD $5 billion approx.
Operating income: USD $428 million approx.
Net income: USD $168 million approx.
As an airline corporation serving most of the United States and several international locations, JetBlue burst into the scene and grabbed significant market share. However, with growing reputation came stiff competition from major airlines as the rival brands felt a significant threat. It forced JetBlue to re-think a lot of its business model, from fuel-economy of its carriers to marketing strategy. Nonetheless, a decade-and-a-half since its debut, it holds strong in the highly competitive and fragmented air travel industry, particularly impressive with its customer satisfaction rating.
We seek a broader perspective of JetBlue as we delve deeper into the company profile using Porter’s Five Forces analysis.
Threat of Competition: HIGH
- Highly competitive airline industry. As a low-cost, non-union airline it faces competition from a...
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... The share means Lufthansa family has a significant amount of say in legal decisions, share-holding and business directives.
- Controversies surrounding sudden resignation of company CFO few years back, as well as indifferent customer service during weather-induced disruptions have presented legal challenges for JetBlue in the past.
- California Council of the Blind lawsuit for not making their kiosks and online systems accessible to visually impaired (2010)
Environmental:
- Weather disruptions (especially during winter in northeastern region) are the biggest environmental factor affecting the services. The harsh winters in last few years have challenged their original policy of never canceling a flight
- Eco-friendly technologies are giving back to the environment generously on behalf of JetBlue. From cleaner fuel, to recycled accessories this is a positive factor
It has stayed relevant to the market through its propelled philosophy of relationships to generate profits in the business. Since its establishment in Monroe, Louisiana the once tiny airline has stretched to greater heights serving in 6 continents. It has also established a distinguishable name among its competitors with a reputation of leading customer services. However, even as an established venture, the company needs to maximize its profits in order to stay in business and expand in to new territories beyond its conquered boundaries. A strategic analysis was carried out by our team to establish the company’s current situation. A SWOT analysis was performed to come up with three referenced, strategic alternatives. This alternatives are meant to act as a strategic guidance to the company in order to enhance growth. The strategic recommendation provided will improve and enable the business to cope with the competitors while the implementation of the strategy section will outline the way to go about achieving these alternatives in the business setting. Lastly, we put up a discussion on the evaluation procedures and necessary controls for the
Bombardier – Bombardier is one of the biggest manufacturers of transport in the world. They have got factories throughout the world such as Canada, Northern Ireland and America. Bombardier have been through a long journey s a company to the place they are today. It all started in Canada when a young Joseph – Armond Bombardier manufactured a snowmobile to help people travel in the snow. When he passed away in the 60’s the company was taken over and focused on transport such as planes and in 1986 they took over Canadair and made it profitable once again. They then went on to take over the Shorts Brothers dying manufacturing company in Belfast, Northern Ireland. They also took over other companies that were struggling and turned them around.
Due to the increased use of the internet, it is becoming more and more easier to book online. This allows customers to book flights easier and increase Jet2’s revenue. Revenue is increased through not having to deliver or post tickets out to its customers, in comparison with other non-internet based airlines. It is believed that over 97% of Jet2’s customers book online, which further highlights Jet2’s emphasis on online bookings.
...s created and focused on a JetBlue model that combines the best within the industry. In an industry that is highly competitive in every process and system, HR is one of the few ways to differentiate a player. Key issues include non-union environment and customized employment packages. They differ greatly from the current firms that are overly regulated and overtly mismanaged. Many companies are plagued with huge pensions, and the inability to motivate their staff. Tensions among employees do not bode well for long-term viability for many of these firms. JetBlue's sources of competitive advantage are it's the alignment of its people, systems and culture. Although JetBlue's strategy is one of a low-cost structure, JetBlue's strength is the dedicated and passionate workforce working with the values set forth by the company: safety, caring, integrity, fun and passion.
JetBlue's mission is "to bring humanity back to air travel". Its low-cost strategy is second-to-none, not even to Southwest. Utilizing Southwest as a model and benchmark early in Neeleman's career in the industry, he's managed to copy the Southwest model and expand upon it with his ability to find more innovative ways to cut costs along the organization's value-chain, while utilizing technology to increase productivity and further add to operational efficiencies. JetBlue's value chain demonstrates its ability to successfully compete in several key areas relative to the bases of competition within the industry and creates processes that focus on reducing costs, for the specific purpose of continuously creating value for its customers, i.e. fare pricing, customer service, routes served, flight schedules, types of aircraft, safety record and reputation, in-flight entertainment systems and frequent flyer programs.
In a dysfunctional time for the airline industry, most airlines, especially major carriers, are adapting the concept of "doing less with more." One low-cost carrier, JetBlue, is changing the domestic aviation landscape in this regard and is defying the odds. Here is a company that has examined each marketing mix elements carefully, has adapted them to its customer’s needs, and is succeeding because of this approach.
Which of the three generic strategies (Cost leadership, Differentiation, and Focus) is JetBlue following? Discuss how information systems is used in JetBlue to support its strategy.
Most of the time, passengers have to struggle to get clear directives from the airline whenever there is a delay or when a scheduled plane developed a mechanical problem. Flight passengers only learn about flight delays and unreported mechanical problems when a gate which they were to use is shut leaving them with no option other than to seek help from other open gates. A survey conducted by ACSI reports that a majority of customers who have once or twice been caught up in the airline mess swear not to use the carrier the next time (ACSI, 2017). Currently, the carrier has the worst customer satisfaction rating, something which might lead to a significant decline in
The case of JetBlue illustrates JetBlue’s plan to succeed, and be among the few airlines that have had longevity. Dave Neeleman was the founder of Morris Air, which was later purchased by Southwest Airlines in the mid 1990s. Neeleman models the operation of JetBlue after Southwest Airlines, in doing so JetBlue only operates one type of airline, the Airbus A 320, as a result they will only need to train and FAA certifies their crew of pilots, flight attendants and mechanics on only that kind of plane. JetBlue also operates from smaller airports instead of the busy international airports, in an effort to save on landing fees there’s also a lot less traffic, so airlines are easier to turn. JetBlue is also able to save on flight cost due to the fact that they operate newer airlines that require less maintenance, and a nonunionized workforce, making their wages a lot lower than those of established airlines.
Examine the causes of the problem: The problem is that JetBlue focused on expansion during its’ initial success. Profits realized at this time were used to acquire a larger fleet, expand routes, enlarge staff and increase terminal space. Seemingly, the primary focus was rapid growth, with an assumption that it would be rewarded with future profits. When profits began to decline, JetBlue chose to focus on competition making changes that would allow them to compete more directly with larger airlines. JetBlue became vulnerable to its competition when management made the choice to shift focus from customer service to expansion.
The following was completed to assess the strategic direction of Spirit Airlines, Inc. and recommend alternative strategies based on their internal and external environments. This analysis begins with a survey of the firm’s history and competitive landscape. Next, we complete a comprehensive internal analysis identifying Spirit’s key resources and capabilities and assessing their competitive market position. Lastly, we isolated the firm’s key focal points for success and assessed four potential strategies, beginning with the firm’s current strategy.
...ry long and successful history in the airlines industry, which makes it one of the leading airlines in the world. Also, it provides the most comfortable flights and services to its costumers and employees, which makes it unique.
The target market of JetBlue airlines is customers who along with low cost seek services. The services provided by JetBlue included in-flight entertainment, TV on every seat, satellite radio, extra leg room, free unlimited snacks, and leather seats. The target market of JetBlue is also the leisure traveler, the low cost ticket seeking traveler, and the cost conscious business traveler. JetBlue has actually, posed a threat to the other low cost airlines like the Southwest Airlines.
The Air Canada case contains a problem in the structure of the company regarding how they are sourcing in their supply chain, managing the risk, and growing the company while maintaining their core competencies. Based off the overall information of the reading, Air Canada seems to be making the correct steps in the success of their business. If you look at page 20 of the reading, Air Canada holds a good majority in the domestic, international, and even transborder market shares. The biggest issue with Air Canada is their need to always innovate to be the best airline that they can be and connect Canada to the world. Some of the major factors that play a part in Air Canada’s problem is that they are always in competition with any company that
To apply and the all ‘ rules of game‘of an business we taking an aviation company known as “Jet Airways” before we get into, here are some intro points about this company.