Jet Blue Strategic Management
Executive summary
JetBlue was founded by David Neeleman in 1998 and is America’s youngest airline flying to over 35 destinations including Caribbean and Atlantic regions.
The key strategies and competitive advantages of JetBlue are the maximisation of its workforce productivity, high quality of service and innovation with affordable prices, low cost ticketing system, and efficient aircraft utilisation.
JetBlue is a low-cost airline with a differentiated approach in regards to the high level of customer service it offers. It thus follows a best-cost provider strategy because it aims to give customers more value for money. As we will see in this report, JetBlue achieves a best-cost position from its ability to incorporate attractive features at a lower cost than its rivals.
This report also investigates the significant factors driving change in the airline industry, and while it may seem unattractive, JetBlue has the capabilities and resources to continue its growth and profitability.
The recommendations for JetBlue’s management is to continue with its best-cost strategy through identifying cost minimising opportunities within its value chain, while at the same time investing aggressively in technology and innovation to differentiate from its rivals.
Table of Contents
1. Strategic vision
2. Functional strategies and key activities
2.1 Customer service 2.2 Human resources 2.3 Policies, practices, and procedures
3. Factors driving change in the airline industry
3.1 Fuel 3.2 Consolidation 3.3 Unionisation 3.4 Economic crisis
4. Future strategies
4.1 Key recommendations/primary focus 4.2 Secondary focus
1. Strategic vision
Neeleman himself is noted for summarising his revolutionary strategic vision through his statement of wanting to “bring humanity back to air travel” (Rovenpor, 2005) through offering passengers low
JetBlue was founded by David Neeleman in 1998 and is America’s youngest airline flying to over 35 destinations including Caribbean and Atlantic regions.
The key strategies and competitive advantages of JetBlue are the maximisation of its workforce productivity, high quality of service and innovation with affordable prices, low cost ticketing system, and efficient aircraft utilisation.
JetBlue is a low-cost airline with a differentiated approach in regards to the high level of customer service it offers. It thus follows a best-cost provider strategy because it aims to give customers more value for money. As we will see in this report, JetBlue achieves a best-cost position from its ability to incorporate attractive features at a lower cost than its rivals.
This report also investigates the significant factors driving change in the airline industry, and while it may seem unattractive, JetBlue has the capabilities and resources to continue its growth and profitability.
The recommendations for JetBlue’s management is to continue with its best-cost strategy through identifying cost minimising opportunities within its value chain, while at the same time investing aggressively in technology and innovation to differentiate from its rivals.
Table of Contents
1. Strategic vision
2. Functional strategies and key activities
2.1 Customer service 2.2 Human resources 2.3 Policies, practices, and procedures
3. Factors driving change in the airline industry
3.1 Fuel 3.2 Consolidation 3.3 Unionisation 3.4 Economic crisis
4. Future strategies
4.1 Key recommendations/primary focus 4.2 Secondary focus
1. Strategic vision
Neeleman himself is noted for summarising his revolutionary strategic vision through his statement of wanting to “bring humanity back to air travel” (Rovenpor, 2005) through offering passengers low
References: 1. Access Intelligence (2008), “Industry poised for more stability says Unisys”, Regional Aviation News, Feb 18, 2008. Retrieved from Expanded Academic ASAP, 19 Sept. 2008. 2. Dodds, B. (2007), “JetBlue Airways: Service quality as a competitive advantage”, Journal of Business Case Studies – Fourth quarter 2007, Vol.3 No. 4, pp. 33-43. 3. Flourish, T. and Dostaler, I. (2007), “Strategic management as a key to educating the new aviation professional”, International Journal of Professional Aviation Training & Testing Research, Vol. 1 Iss. 1. 4. Pierceall, K. (2008), “JetBlue’s only flight at LA/Ontario International to stop”, McClatchy-Tribune Business News, Jul. 23, 2008. Retrieved from ProQuest database on 19 Sept. 2008. 5. Rubin, R.M. and Joy, J.N. (2005), “Where are the airlines headed? Implications of airline industry structure and change for consumers”, The Journal of Consumer Affairs, Vol. 39 No. 1, pp. 215-228. 6. Rovenpor, J. (2005), “JetBlue Airways: Can it survive in a turbulent industry?”, in Thompson, A.A., Strickland, A.J. and Gamble, J.E., Crafting and Executing Strategy (15th ed), McGraw-Hill, New York, NY. 7. Thompson, A.A., Strickland, A.J. and Gamble, J.E. (2007), Crafting and Executing Strategy (15th ed), McGraw-Hill, New York, NY.