Jet Blue Airlines Harvard Case Solution & Analysis

Abstract

The case illustrates the growing demand for the JetBlue airways in US. Over the period of time, the airways haveevolved and turned into the best airways in the US. It offers the frequent air flights within New York and cheaper rates along with some regions in Asian continent, Bahama, and Petu.Since from the start, the company aimed to offer ease and convenience to the passengers and revive the air flight industry, it continuously improvised its structure and managerial practices along with the vision andmission to tap into the customer demand effectively in themarket.In 2013, the company however, faced the lowreturns and revenues, due to which it revised its operational competencies, and in 2014, due to political and economicstability, JetBlueagain reached at the revenues’peak in the air industry. Its major competitors are Airbus, Southwest airlines and the Alaska Air Group.Since the demand forJetBlueincreased, the companyincreased its capacity by 7.5% and reached theefficientutilization of capacity throughout the year to 86%. Thisdepictsthe efficient handling of the operations to reach maximumutilization of resources and hence the profitability.
Jet Blue Airlines Harvard Case Solution & Analysis

However, though the company is progressing at a faster rate, it is exposed to high competition which may lead to tighterprofits in future. In such situation the company has to strengthen its business strategy by channeling the strengths into the market and dealing with the threats to tap the opportunities and overshadow the weaknesses.This will allow the company to develop sustainable market position and string market share.

Keywords:  Strategic planning, Competitive advantage, Positioning, EFE, IFE, SWOT analysis

 

 

Introduction

 

JetBlue airways started its operationsin 1998 Augustwith its headquarters in Forest hills,New York.The company focused to offer the air flight services to the local citizens of the New York at first and then the US.Itsfocusremained to be the domesticairline. Over the period of time, underthe leadershipof Neeleman-The CEO, JetBlue pursued the low cost strategy along with differentiation strategy to tap and dig into the market of New York.

From its intimation, the companyremainfocused to fill in the market gap, which it identified to be decreasingdue to high fare of flights to New York, so in response to the market gap, Neelemamn developed the low fare strategy along with the additional customer service to delight the customers. Inaddition, under thedifferentiation strategy, JetBlue devised the exquisite flightservices, including leather seats, 36 live channels, Drinks, and movie selection from Fox in-flight at every seat and good leg space. All these factors alltogetherhave developed the differentiation strategy for the JetBlue airways.

In 1990s, seeing the market growth, many companies tried to initiate the low cost strategy of business so to grabthe market demand, however, all of it failed due to inadequate resources and financialassistance to support the strategy.In contrast to this, JetBlue establishedthe pool of cash flow from different sources and shareholders that well supported the cost leadership strategy.

In order to attract the customer flux and develop strong market value proposition, the company offered beyond the line in flight services including Page 3 broadcast and personalized movie selection all in the low fare trip.Also, it hired the 300+ call center agents to resolve customer querieshence developing a strong customer 's satis faction plat form with in the business strategy........................

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