The JetBlue Story Harvard Case Solution & Analysis

Background and Introduction:

JetBlue Airways Corporation started from scratch in 1999 and officially started its business operations in 2000. The company is known to be an airline with low-fare charges along, high quality for customers and the differentiated product. The target market of the company is the large metropolitan areas where the plane fares are high on average. Most of the United States airlines adopts and follows the Hub and Spoke route system, however; JetBlue Airways follows point to point route system.

JetBlue Airways is one of the most successful airlines in the United States. The founder of the company, David Neeleman wants JetBlue Airways to be the one that can provide unique services and offer a treasured flying experience to their customers. The company wants to build long-term relationships with their customers backing order to make them to keep on coming back.

Staying successful and competitive in the airline industry is not an easy task as only two companies are in still operation among the companies that entered in the airline business during 80s. JetBlue took a great start with good human resource and management team. The company also made a good decision regarding resource allocation and budgeting of the company. In addition to that, the company also made timely and wise decisions related to the buying and selling of planes, technological advancements and other business decisions as well. By the end of 2002, the company announced their IPOs that were for the common stock. As of now, the company is engaged in operating more than 180 flights per day.

Vision:

The goal and vision of JetBlue Airways are to be a leader in the airline industry by providing low-fare airline services to the customers along with maintaining high quality customer service and differentiated product.

Problem identification:

The company has successfully maintained its brand image and differentiated itself as a high customer oriented organization. For further growth and success, the company needs to take some measures to stay competitive in the industry and to attain speedy achievement and growth. It is a fact that staying competitive in the airline business is not an easy task, therefore; competitors of JetBlue Airways like United is working hard to prove it as successful airline. For JetBlue Airways, their vision is not only to be a successful organization but they also want to make a culture that is based on value and commitment to the organization. The company needs to expand in order to grow and make itself more profitable.

Strategic/Competitive

Strengths:

One of the major strengths of the company lies in its technology. The company has made the best use of technology to diminish the costs and expenses of the company as a selling point to their clientele. Further, the company has implemented a ticket less system which eventually reduces the cost of paper. The concept of ticket less system provided expediency and simplicity to the customers as well. The company has finished the concept of the paper ticket as customers do not have to worry about putting their tickets in the bag before leaving for the airport.

In addition to that, the company has found other ways too in order to make reductions in their costs. They give much importance to their workforce, therefore; the employees are happy and content with the company even with low salaries. The company has used the same planes and use point-to-point system for running flights that helps the company to switch pilots and to save the fuel as well as money that in turn decrease the overall cost of the company.

Another major strength of the company is the prime focus on continuous innovation. Recently the company has installed cameras in their planes and other facilities like direct TV, comfortable leather seats and internet are the ways to satisfy customers.

Weaknesses:

One of the major weaknesses of the company is the inadequate number of routes accessible to the customers. However, routes are not a major problem, but the number of places offered to fly for the customers is a major problem. JetBlue Airways does not provide many routes, therefore; customers have to switch to other competitors in order to reach many destinations. Further, the company has been criticized for its frequent changes in the flier program as well.

Despite the fact that most individuals recognize JetBlue Airways, the organization is still not as large as it needs to be. In the light of this, the airline has some difficulty in getting entryway openings at huge runways. They likewise don't fly all around yet, so their target business is more diminutive than other airlines transporters. One of the greater shortcomings is that some individuals just consider that JetBlue Airways is a shabby start-up airline.

Opportunities:

Opportunities are the chances which a company may acquire to gain competitive advantage. As discussed above, it is difficult for the airline companies to stay competitive in the airline industry, therefore; JetBlue Airways can take it as an opportunity and grab their customers. By doing this, the company will be able to achieve recognition for its brand towards more.................................

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This case tells the story of JetBlue Airways since its inception in 2000 until 2004. The case provides detailed information on the business model, JetBlue and the causes of success. It can be used during maintenance operations or strategy. "Hide
by Elliott N. Weiss, Marlene Friesen Source: Darden School of Business 15 pages. Publication Date: November 23, 2004. Prod. #: UV3543-PDF-ENG

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