JetBlue Airways Corporation Harvard Case Solution & Analysis


No industry is free from threats so as the airline industry. The industry has always been surrounded by endless threats. Maintaining and enriching the organizational culture is a complicated challenge. It becomes difficult for the company to change the working style of the employees and to motivate them to continue their jobs with less salary. It is very important for the company to maintain its culture because this is the way through which, the company can provide best services to their employees in order to gain competitive advantage.

Recent patterns have proposed that the air transport business is a tricky one to succeed in, and stay fruitful as time goes. There are numerous risks that each airline must be mindful of to abstain from going bankrupt. Initially, there are numerous outside dangers that JetBlue Airways needs to fret about. The forces in the economy compel the nation to have a huge impact whether individuals are flying or not. At the point when the economy is down, individuals tend not to fly as much and organizations need to arrange flights likewise. The danger of a terrorist ambush is additionally an enormous sympathy toward carriers on the grounds that individuals won't fly on the off chance that they're terrified. The cost of oil is an alternate risk for JetBlue Airways. Different dangers incorporate different aerial lines, particularly other rebates airlines. One of the greatest dangers is the JetBlue Company itself. The organization anticipates growing at a quick rate. In the event that the organization extends very quickly, it can encounter misfortunes and the organization's qualities may also be lost.

Research: the low cost business model:

The business model of the company is based on two major strategies that are differentiation and low cost.

Differentiation Strategy:

The company can differentiate its services from its competitors by giving them more facilities such as extra wide leather seats where passengers can sit comfortably. In addition to that, the company has been providing live satellite TV which broadcasts 24-channels on every seat. Further, the company is also engaged in providing superior services to the customers with the help of customer loyalty program.

Low Cost Strategy:

The foremost feature of the low-cost business strategy is charging low-fare from the customers. In addition to that, the company is using new aircrafts that are fuel efficient and consume less fuel than the old ones. With the help of cost efficient fuel system, JetBlue Airways keeps their planes in the air for 12.9 hours earning revenue. The company uses only point to point routes and do not serve meals during the flight to the passengers. More than half of the reservations are made through online procedure.

Analysis of JetBlue Airways current situation:

Current Strategy:

As of now, the company is currently offering high customer service and low fare prices to the customers. The major pluses of the company that gives them a competitive edge are the planes that JetBlue Airways has, which offer best quality service to the customers and smooth flow in the business operations.

The company believes in continuous improvement therefore they continuously try to invent new technologies and inventions. JetBlue Airways is known to be the first airline that has set the cameras in the cockpit so that pilot can see the activities inside the plane. The basic aim for making these innovations are to make the customers content, happy and satisfied with the performance of the company. This will help the company to ensure itself that customers will come back for travelling through JetBlue Airways.

Moreover, the company is also trying to keep its operating cost at a minimum level. Ways through which JetBlue Airways keep their cost low include making their workers happy and motivated so that they do not demand more salary or leave the organization for other attractive packages. Moreover, the company has implemented paperless environment by making bookings online along with online ticket system as well; which helps the company to maintain its cost strategy.

JetBlue’s competitive advantage and its pros and cons:

The two basic components of the company’s competitive advantage are differentiation and cost leadership. With the help of efficient operations, the company has successfully achieved competitive advantage through cost leadership strategy. The company maintains and decrease the maintenance as well as fuel cost by using new planes that require less fuel and maintenance. Moreover, the company has larger planes as well which increase revenue per flight especially on long flights. Likewise, the company do not serve meals during the flights which reduce the cost related to food. As the company is making online reservations thus, overhead and cost related to infrastructure has been reduced too.......................................

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