JetBlue: Leadership with Wings
analytical Essay
1831 words
JetBlue: Leadership with Wings "To continue to bring humanity back to air travel." This is the promise JetBlue Airways Corporation has made to its shareholders, customers, and "crew members" in order to build a strong, solid and rapidly growing company. JetBlue uses two significant tools that drive its success: low fares and superb customer service. This growing discount airline works to keep its costs down and implies this goal by offering one-class service and eliminating airport lounges and full meal services. JetBlue relies completely on technology with an operation strategy of choosing less crowded airports located near large cities to keep its turnaround down. In addition, JetBlue offers leather seats, LiveTV (a satellite service with programming provided by DirectTV), and began adding XM Satellite Radio to its fleet in 2005 to stress customer value. According to our chapter, the Service Value Model has six components that focus on customer value. The quality of JetBlue flights is a perception based on the expectation that the customers have before they actually try out the service. The comfortable leather seats along with the discount price, for example, are a perception that the customer has towards this airline, but value is created when the customer expectation is exceeded. Another component adding value to JetBlue is Intrinsic Attributes. This airline chooses its supplementary service very carefully; as mentioned earlier the full service meals are eliminated, how... ... middle of paper ... ...ient use of strategy. With this said, it is understandable when Neeleman says that "you can be efficient and effective and deliver a great experience at the same time." Bibliography 1- CIO Magazine. JetBlue Skies Ahead. 1 July 2002. 2- CBS News. JetBlue: Flying Higher? 18 June 2003. 3- Red Orbit News JetBlue Helps Customers Tell Their Story With the Launch of a Groundbreaking Brand Program. 30 March 2006. 4- Travel Weekly. Jet Blue Plans Dynamic Package. 21 March 2005. < http://www.travelweekly.com> 5- The New York Times Company. JetBlue to serve Dunkin Donuts Coffee. 24 January 2006. 6- WCBS TV. JetBlue Adds Cushy Comfort to Red-Eye Flights. 4 April 2006. < http://wcbstv.com/business/local_story_094062858.html> 7- CNN. JetBlue Founder Takes Low-Fare Airline to New Heights. 19 April 2004.
In this essay, the author
- Explains how neeleman differentiated jetblue from other "start-up" airlines with the european airbus a320's fuel-efficiency, cheaper maintenance, and one-class service.
- Explains jetblue's focus on customer service and comfort, and their dynamic package, which provides direct relationships with hotel, car and cruise suppliers for its customers.
- Explains how neeleman implemented technology throughout his company in order to gain a competitive advantage against other major and larger airlines.
- Explains how neeleman differentiated jetblue from other "start-up" airlines with the european airbus a320's fuel-efficiency, cheaper maintenance, and one-class service.
- Explains jetblue's focus on customer service and comfort, and their dynamic package, which provides direct relationships with hotel, car and cruise suppliers for its customers.
- Explains how neeleman implemented technology throughout his company in order to gain a competitive advantage against other major and larger airlines.
- Analyzes how neeleman's it strategy reduces overhead and labor costs. employee loyalty and dedication comes through caring and involvement in their company.
- Explains that jetblue helps customers tell their story with the launch of a groundbreaking brand program.
- Explains jetblue's promise to its shareholders, customers, and "crew members" in order to build a strong, solid and rapidly growing company.
- Analyzes how porter's five forces model had a strong impact on the start and growth of jetblue airways corp.
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- Swot Analysis Of Jetblueexplanatory essayAs 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.
In this essay, the author
- Describes jetblue airways corporation as a premier non-union airline headquartered in long island city of new york, operating out of john f. kennedy airport as its primary base.
- Explains that southwest airlines is a low-cost, non-union airline, which faces competition from all other airlines due to its excellent in-flight amenities.
- Explains jetblue lost significant ground in the past due to wasteful marketing strategies. they were unable to establish a loyal, steady identity as opposed to print, digital media campaigns of delta and united.
- Describes jetblue airways corporation as a premier non-union airline headquartered in long island city of new york, operating out of john f. kennedy airport as its primary base.
- Explains that southwest airlines is a low-cost, non-union airline, which faces competition from all other airlines due to its excellent in-flight amenities.
- Explains jetblue lost significant ground in the past due to wasteful marketing strategies. they were unable to establish a loyal, steady identity as opposed to print, digital media campaigns of delta and united.
- Explains the limited locations of focus cities/hubs for flying bases and crewmembers, mostly concentrated in northeastern region and florida, and relative modest services to international locations.
- Explains that stringent regulations make it relatively safe against invasion of new players. major airline carriers responded with their mini-rival carriers but delta (song) and united airlines (ted) have been forced to pull them back
- Explains that the high start-up cost makes it relatively difficult to penetrate the market.
- Explains the increasing market share of alternate modes of transport, especially railways (54%) as opposed to air-travel (46%) in primary hubs like new york and boston. cruise liners to caribbean islands have reported a 12% growth in 2013-14.
- Explains that the ever rising fuel price and associated costs of amenities periodically affect profitability due to its business model of offering low prices.
- Explains that efforts to curtail costs and recent innovations like fuel-efficient carriers lend bargaining power to suppliers.
- Explains that big partner brands like yahoo! and blackberry demand marketing revenue owing to their brand stature and the value they lend to in-flight customer service.
- Explains that major investors like jp morgan-chase were instrumental in branding jetblue, threatening to pull out of funding if the airline was named ‘taxi’ to accentuate its new york association.
- Analyzes how low-cost packages offer minimal negotiating power for customers, despite faulty policies affecting a majority of customers in 2007 valentine's day storm.
- Explains that since their first quarterly loss in 2006, a number of their in-flight amenities have been paid services in an effort to return to profitability.
- Opines that high quality customer service and amenities at low price (e.g. flat-screen monitors with over 24 directv satellite channels for every seat).
- Explains that codeshare and interline agreements with major airlines in europe, africa, middle-east, asia, and trans-atlantic services.
- Explains that the partnership with major sports teams (ny jets, boston red sox etc.) broadcasted the olympics live.
- Describes the benefits of frequent flyer program members (trublue) such as easy refund of in-flight purchases and life-time points which never expire.
- Explains that confusing marketing strategy leads to unclear messages and inability to establish a brand identity and loyal fan-base.
- Explains jetblue's limited focus on international travel and gateways, compared to most big players in airline carrier industry.
- Opines that rising fuel prices and technology costs are a major concern for profitability of the corporation.
- Explains that back-up of extra fleet as collateral is limited, which makes it a high-risk situation in case of major disruptions, delays in adding new aircraft or during scheduled maintenance.
- Explains the addition of new fuel-efficient carriers to the fleet like the sharklets, and upgrades to a310 aircrafts for better performances for greater revenue outputs.
- Describes airbus' service expansion to more destinations in the midwest and southern part of the united states; adding new planes to enable westbound transcontinental route flying in winter.
- Explains jetblue's in-flight service and amenities are a major talking point in their customer service, so increasing payable amenities to gather more revenue is another avenue for them to widen their revenue-earning opportunities.
- Explains that low-cost carriers and alternative modes of transportation pose major threats to their market. railroad travel (in boston, ny) and cruise liners (fl) are relatively inexpensive and gaining market share.
- Explains that their technology is too dependent on cloud servers and online presence, which means they risk a complete blackout of their major financial and service sectors.
- Explains that weather disruptions in light of recent winters have been a persistent threat, especially in their operating hubs.
- Explains new regulations requiring at least 10 hours off for pilots, which increases their workload in holiday seasons, peak flying seasons and other times of heavy traffic.
- Opines that market saturation in north-eastern us, where several other big airline carriers are already jostling for a share of the pie, makes it difficult for jetblue to penetrate further
- Explains that new air-travel regulations mean a fresh set of taxes, lobbying and distribution policies for the services and changes in contemporary market.
- Opines that negative publicity associated with republican parties, whose candidates have used jetblue as their official aircraft, will fade away with time, but they remain tagged as sarah palin's plane.
- Explains that fuel prices are a decisive factor in determining long-term fortunes of any airline carrier.
- Explains that eco-friendly crafts are politically correct, but maintaining a fleet eats into the company's coffers. the perception of air-travel being expensive is gradually changing with ever-increasing deals and offers.
- Explains that air travel isn't getting any cheaper, but the purchasing power of the general population has increased, which means there are several other low-cost options vying for similar pockets of market share.
- Opines that jetblue's bankruptcies of rival airlines are a great opportunity for them.
- Analyzes how positive brand identity despite average marketing strategies and social media presence has an impact on jetblue's socio-cultural feedback. they are generally perceived as a low-cost option, but one which has enough amenities and features.
- Explains that good buying access for both suppliers and customers lends credence to its expansion plans, frequent flyer programs, and affords greater market freedom.
- Opines that the consumer attitude is positive due to good customer service — being consistently ranked among the best customer satisfaction and offering plenty of benefits with their frequent flyer program.
- Opines that jetblue would need to imbibe a culture of applying feedback into next round of innovation.
- Explains that investment in r&d of fuel-efficient carriers has resulted in greater lifespan of new, lighter planes and better performances of long-distance flights, with potential for more such flights being added.
- Explains jetblue's investment in high-quality in-flight email, telephone, and security system continues to highlight its investments in top-class technology for amenities.
- Explains that the biggest legal hiccup is negotiating with the cabin-crew and ground crewmembers as the chasm between demands and surplus profit dwindles.
- Explains that lufthansa/ star alliance have nearly 16% of legal and financial ownership, which means the family has a significant amount of say in legal decisions, share-holding and business directives.
- Describes the legal challenges jetblue faced in the past due to the resignation of its cfo and indifferent customer service during weather-induced disruptions.
- Explains that california council of the blind sued for not making their kiosks and online systems accessible to visually impaired people.
- Explains that weather disruptions are the biggest environmental factor affecting the services. the harsh winters have challenged their original policy of never canceling a flight.
- Explains that eco-friendly technologies are giving back to the environment on behalf of jetblue. from cleaner fuel to recycled accessories, this is a positive factor.
- Analyzes jetblue's competitive and fragmented air travel industry and porter’s five forces analysis.
- Explains that jetblue is ranked as 'highest in customer satisfaction among low cost carriers in north america' for eight consecutive years.
1755 wordsRead More - Southwest Airlines Case Analysisargumentative essaySince 1987, when the Department of Transportation began tracking Customer Satisfaction statistics, Southwest has consistently led the entire airline industry with the lowest ratio of complaints per passengers boarded. Many airlines have tried to copy Southwest’s business model, and the Culture of Southwest is admired and emulated by corporations and organizations in all walks of life. Always the innovator, Southwest pioneered Senior Fares, a same-day air freight delivery service, and Ticketless Travel. Southwest led the way with the first airline web page—southwest.com, DING, the first-ever direct link to Customer’s computer desktops that delivers live updates on the hottest deals, and the first airline corporate blog, Nuts About Southwest. Our Share the Spirit community programs make Southwest the hometown airline of every city we serve.
In this essay, the author
- Describes how rollin king and herb kelleher decided to start southwest airlines 37 years ago. they began with one simple notion: if you get your passengers to their destinations on time, at the lowest possible fares, people will fly your airline.
- Explains that southwest airlines has one of the youngest fleets in the nation, with an average age of approximately nine years.
- Explains that southwest has consistently led the entire airline industry with the lowest ratio of complaints per passenger boarded. the culture of southwest is admired and emulated by corporations and organizations.
- Describes how rollin king and herb kelleher decided to start southwest airlines 37 years ago. they began with one simple notion: if you get your passengers to their destinations on time, at the lowest possible fares, people will fly your airline.
- Explains that southwest airlines has one of the youngest fleets in the nation, with an average age of approximately nine years.
- Explains that southwest has consistently led the entire airline industry with the lowest ratio of complaints per passenger boarded. the culture of southwest is admired and emulated by corporations and organizations.
- Explains that southwest airlines is the 7th largest airline in the united states. it is profitable in every quarter since 9/11, opposed to many other companies who have declared bankruptcy.
- Analyzes the growth of the commercial airline industry during the second half of this century, and how they are using information technology to gain competitive advantage.
- Explains that us air travel has grown at an average of 5% per year over the past 20 years. deregulation, liberalization, and competition have altered the management strategies and practices of airlines.
- Explains the mission of southwest airlines, which is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit.
- Explains that southwest airlines is the most profitable airline in the u.s. and continues to dominate the market for low-cost carrier planes.
- Explains that southwest has the strongest balance sheet in the industry, meaning it has low levels of debt and large stockpiles of cash.
- Explains that there are new entrants coming into the low-cost carrier market and this means added competition for southwest. jetblue and air tran holdings are trying to grab a bigger chunk of the market.
- Recommends that southwest airlines increase direct flights and buy bigger plains to gain a stronger competitive advantage over their competitors.
1690 wordsRead More - JetBlue Airwaysargumentative essayJetBlue'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 this essay, the author
- Explains that the a320 airbus has an increased seating capacity of 30 seats, is cheaper to maintain, fuel efficient and reduces training costs, relative to other aircraft models used in the industry.
- Explains paperless cockpit reduces paperwork and results in faster take-offs, quicker turnarounds and higher aircraft utilization.
- Explains the importance of recruiting and retention, including competitive salaries, bonuses, profit sharing, stock purchases, and opportunities for advancement.
- Explains that the a320 airbus has an increased seating capacity of 30 seats, is cheaper to maintain, fuel efficient and reduces training costs, relative to other aircraft models used in the industry.
- Explains paperless cockpit reduces paperwork and results in faster take-offs, quicker turnarounds and higher aircraft utilization.
- Explains the importance of recruiting and retention, including competitive salaries, bonuses, profit sharing, stock purchases, and opportunities for advancement.
- Explains the development of processes and systems that streamline workflows and create efficiencies that are passed down to the customer in the form of quality service and reduced costs.
- Opines that the threat of new entrants is low due to entry-level barriers associated with capital requirements or the high cost of entry.
- Explains that buyers are price sensitive, especially during price wars, and are willing to substitute or forego a certain amount of service to take advantage of the lowest price.
- Explains that airline travel is a mature industry with fierce competition. carriers are seeking innovative ways to retain existing customers and maintain market share while trying to capture the market shares of competitive rivals.
- Explains that the airline industry experienced proof of this following the 9/11 terrorist attack after the decline in travel caused some major, as well as minor, airlines to close their doors. leisure travel practically ceased, while business travelers resorted to the use of technology
- Explains that underutilized airports serve low-cost and direct flights with no connections.
- Describes the benefits of forming a corporate-level strategy by leveraging jetblue's core competencies in reservation systems and rapid turn around times. the collaboration would grant them access to markets they would otherwise have difficulty competing in.
- Recommends implementing a corporate-level strategy of internal development to focus on developing more innovative technologies that increase efficiency, reduce costs, and are hard for competitors to imitate.
- Recommends jetblue's low-cost, differentiation strategy, utilizing a single-type aircraft, and seeking growth in international markets. they also recommend an internal development corporate-level strategy that emphasizes the need for continuous innovative process.
- Explains that jetblue airways entered the market in 2000 from a position of financial strength, leadership capability, and several rare advantages.
- Explains the advantages of point-to-point routing system, unlike low-cost competitors that utilize hub-and-spoke system.
- Explains the layout and design of planes and reduced seating capacity to increase customers' legroom and comfort.
- Explains the true-blue points program, which allows customers to receive a free round-trip ticket based upon points earned. its superior operational performance, better completion factor, on-time performance and fewer mishandled bags, translates to exceptional customer service.
- Explains that management's hands-on approach in assisting crewmembers with work activities supports its culture as a service company striving for an environment that encourages safety, caring, integrity, fun and passion.
- Analyzes the intensity of competitive rivalry amongst competitors in the industry. the strength of jetblue's competitive advantage was demonstrated after the aftermath of the 9/11/01 terrorist attack.
1679 wordsRead More - Airline Industry Research Paperexplanatory essayOne Marketing strategy that airline carriers are implementing into their airplanes is a better seat.
In this essay, the author
- Explains that wilbur and orville wright invented flight, which would allow people to get from one place to another quickly and save time and money.
- Explains that airlines are an important part of the world's economy, and that the coming years are going to be a role coaster for the airline industry.
- Explains that airline carriers are implementing a better seat in their airplanes, such as lumbar supports, headrest, and greater pitch, so road warriors can sleep in bliss.
- Explains that wilbur and orville wright invented flight, which would allow people to get from one place to another quickly and save time and money.
- Explains that airlines are an important part of the world's economy, and that the coming years are going to be a role coaster for the airline industry.
- Explains that airline carriers are implementing a better seat in their airplanes, such as lumbar supports, headrest, and greater pitch, so road warriors can sleep in bliss.
- Explains that frequent travelers select an airline company that has comfort and hospitality before they select a company with good safety and on-time performance.
- Explains that airlines are spending a lot of money to adopt this knew marketing strategy. they are beginning to understand that travelers want more luxuries and comfort.
- Explains that southwest airlines is implementing a program where friends fly free. it's like buying one get one free, and people are trying to get something for nothing.
- Explains that southwest airlines' 25-dollar non-stop flight promotion stirred up a lot of business, which allowed them to control the market. with joyce rogge as their vp-advertising and promotions, the company is sitting pretty
- Explains that the "air mile" is a marketing strategy that is familiar to us. the more miles you fly, the more free miles. credit card companies offer miles with every use of their card.
- Explains that every day technology is advancing and showing us new ways in which to do things, and airline travel is no exception.
- Explains that airlines are spending over one million per aircraft to put in a ton of chunky electronics that adds as much to fuel consumption as twenty extra passengers-but does not always work.
- Explains that airline companies are trying to get as much as the market as possible by coming up with new marketing strategies.
- Cites brandweek's article, "airlines to tout seats of pleasure in effort to win over road warriors."
1035 wordsRead More - Business of JetBlue Airwaysanalytical essayJetBlue Airways was well on its way to become the premier low fare airline in early 2002. “Despite the fact that the US airline industry had witnessed 87 new airline failures over the previous 20 years” JetBlue had an innovative business model that focused on reducing cost while eliminating “everything that sucked about airline travel.” JetBlue airlines were put together by David Neeleman who “launched a new airline that would bring humanity back to air travel. Neeleman had a lot of prior experience in the airline industry having spent time at Morris air, later acquired by Southwest. Neeleman also used his experience to help launch a startup low fare airline company in Canada known as West Jet. One of JetBlue’s major assets was its commitment to technology. By maintaining a fleet of newer more technologically Airbus A320s “JetBlue’s fleet was not only more reliable and fuel efficient than other airline fleets but also afforded greater economies of scale because the airline had only one model of aircraft.”
In this essay, the author
- Explains that an initial public offering is the first time the equity of a company is publicly traded and is an excellent way to grow your capital base.
- Explains brigham and daves' advantages and disadvantages of going public.
- Analyzes how the brigham and daves textbook refers to the spread between offering and closing price as an "indirect cost."
- Explains that an initial public offering is the first time the equity of a company is publicly traded and is an excellent way to grow your capital base.
- Explains brigham and daves' advantages and disadvantages of going public.
- Analyzes how the brigham and daves textbook refers to the spread between offering and closing price as an "indirect cost."
- Analyzes brigham and daves' three reasons why a company would want its ipo price undervalued.
- Describes jetblue airways' innovative business model that focused on reducing cost while eliminating "everything that sucked about airline travel."
1215 wordsRead More - The Jet Age: The Jet Age And The Airline Industryexplanatory essayThe airline industry has an incredibly intricate market ruled by consumer need and firm greed. The airline industry utilizes an oligopoly style market structure and airlines often use certain price discriminations to obtain the most revenue from their services. Externalities also weigh into the airline industry. Competition amongst airlines is incredibly fierce and only those who are thirsty for business and cold hard cash will survive within the terminal walls and jetway halls.
In this essay, the author
- Explains that the airline industry utilizes an oligopoly style market structure and uses certain price discriminations to obtain the most revenue from their services.
- Explains how the introduction of new technology paved the way for issues regarding externalities, and production of these new technologies.
- Explains that markets are classified based on their competitive nature in today's free market system.
- Explains that the airline industry utilizes an oligopoly style market structure and uses certain price discriminations to obtain the most revenue from their services.
- Explains how the introduction of new technology paved the way for issues regarding externalities, and production of these new technologies.
- Explains that markets are classified based on their competitive nature in today's free market system.
- Opines that airlines will try to differentiate themselves by boasting alternative incentives for travelers, such as priority seating, comfort, quality food, entertainment, and so on.
- Explains that entry into the airline industry is difficult due to the colossal expense involved in buying or leasing aircraft, renting terminal space, hiring pilots and crew, as well as building maintenance hangars.
- Explains that airlines have very limited control over the price of their product. in an oligopoly, if one firm tries to raise revenues by lowering product prices, other firms drop their prices to ensure that consumer business is not lost.
- Explains that the united states' free market allows airlines to compete naturally through pricing. the price of a firm’s airline ticket will vary with time of travel, whether peak or off-peak, with class, length of stay at the destination, etc.
- Explains that airlines compete through price discrimination, which occurs when a producer charges different prices for different units of the same commodity for reasons not associated with the costs of supply.
- Explains that non-price competition is a marketing strategy to increase and attract consumer demand. a frequent flyer program is an example of loyalty-inducing market device.
- Explains that strategic alliances are a long-term partnership between two or more firms who attempt to enhance competitive advantages collectively against other competitors.
1036 wordsRead More - The History Of Southwest Airlinesexplanatory essayWhat is particularly impressive about Southwest Airlines is that the company has been consistently profitable every year since 1973. This is mostly due to its eager pursuit of low operating costs, low fares, and customer-pleasing service. Also, Southwest has consistently led the entire airline industry with the lowest ratio of complaints per passengers boarded. The company started out at the bottom and worked its way up through industry ranks to become a major competitive force in the domestic segment of the U.S. airline industry. The company was able to overcome industry downturns, dramatic increases in the prices of jet fuel, falloffs in airline traffic due to terrorist attacks and recessions, while other airline companies are in debt or have gone bankrupt. Also, not only were they able to overcome these threats, but they continued to add more and more flights to more and more airports overtime. The major reason for their continued success seems to be due to their low-cost model and strong emphasis on employee and customer satisfaction.
In this essay, the author
- Explains that southwest's history reflects its ceo kelleher’s tenacity. after five years of legal battles due to competitors’ objections, the airline finally got off the ground in 1971.
- Explains that southwest airlines has consistently been profitable every year since 1973, due to its eager pursuit of low operating costs, low fares, and customer-pleasing service.
- Explains that southwest airlines' history is a story of courage and perseverance. kelleher filed the papers to incorporate air southwest co.
- Explains that southwest's history reflects its ceo kelleher’s tenacity. after five years of legal battles due to competitors’ objections, the airline finally got off the ground in 1971.
- Explains that southwest airlines has consistently been profitable every year since 1973, due to its eager pursuit of low operating costs, low fares, and customer-pleasing service.
- Explains that southwest airlines' history is a story of courage and perseverance. kelleher filed the papers to incorporate air southwest co.
- Narrates how braniff, continental, and texas international argued that the markets southwest wanted to serve were already saturated and there was no room for a new carrier.
637 wordsRead More - Jetblue Internal Analysis Essayopinion essayJetBlue does not have a differential access to low cost inputs to its process that is not accessible to other airlines. In addition, the LCC model have been developed long time ago and Airlines like southwest have mastered it over the years. Generally, the operational choices are based on attributes and capabilities that are not difficult to imitate. These choices, are neither path dependent not casually ambiguous nor socially complex and thus not costly to imitate by competitors.
In this essay, the author
- Argues that jetblue's operational choices should aim to reduce costs or increase the customer willingness of its customers to pa.
- Opines that jetblue's operational choices can be replicated by competitors and thus are not rare in general. however, their choice to compete with regional carriers gives them a rare advantage of not subject to union and legacy carrier policies.
- Explains that jetblue does not have differential access to low cost inputs to its process that is not accessible to other airlines. the operational choices are based on attributes and capabilities that are not difficult to imitate by competitors.
- Argues that jetblue's operational choices should aim to reduce costs or increase the customer willingness of its customers to pa.
- Opines that jetblue's operational choices can be replicated by competitors and thus are not rare in general. however, their choice to compete with regional carriers gives them a rare advantage of not subject to union and legacy carrier policies.
- Explains that jetblue does not have differential access to low cost inputs to its process that is not accessible to other airlines. the operational choices are based on attributes and capabilities that are not difficult to imitate by competitors.
- Opines that the introduction of the new airplanes and shorter haul has introduced operational complexity that introduced frustrations of integrating the processes and systems at jetblue.
734 wordsRead More - JetBlueanalytical essayThat is what Dave Neeleman set off to create with the inception of JetBlue in 1999. JetBlue is a bright, young startup airline. Why has JetBlue succeeded where most have failed? Is Dave's strategy as simple as bringing "humanity back to air travel"?
In this essay, the author
- Analyzes how dave neeleman created jetblue in 1999, a bright, young startup airline that succeeded where most have failed. is dave's strategy as simple as bringing humanity back to air travel?
- Explains that the airline industry is a fascinating market and has reached astounding milestones. since 9/11, the industry has lost over $30 billion dollars. jetblue has become the golden example.
- Explains how deregulation removed government control over fares and domestic routes, and how it was attractive for new firms to service the demand.
- Analyzes how dave neeleman created jetblue in 1999, a bright, young startup airline that succeeded where most have failed. is dave's strategy as simple as bringing humanity back to air travel?
- Explains that the airline industry is a fascinating market and has reached astounding milestones. since 9/11, the industry has lost over $30 billion dollars. jetblue has become the golden example.
- Explains how deregulation removed government control over fares and domestic routes, and how it was attractive for new firms to service the demand.
- Opines that to make money in the airline industry, the following criteria must be met: planes should be fully utilized, and efficient plane turnarounds.
- Compares jetblue's cost per available seat mile, average plane turnarounds, load factors, and customer satisfaction measures to other airlines.
- Analyzes how jetblue's strategy is a mixture of strengths in people, technology, and low cost. it was profitable within the first year of operation.
- Explains how dave leveraged his low-cost strategy to find the optimal solution for jetblue when they had to locate a home base for the airline.
- Explains that the non-union environment is critical to jetblue's growth and success, as it avoids the strain atypical of labor-management relations in unionized companies.
- Explains that jetblue has customized employment packages for new flight attendants. each package is customized to meet the needs of the specific groups.
- Explains that jetblue has systems in place that address voluntary turnover such as shocks. they also support a lifestyle that is appropriate for many of their agents.
- Argues that jetblue's success and growth is sustainable and that the company has a system that engages and motivates employees, which offsets the lower pay.
- Explains that the airline industry is marred by high barriers to exit. jetblue keeps its cost per available mile as low as possible to address this concern.
- Explains that jetblue is successful because it continues to innovate and combines the best within the industry.
1701 wordsRead More - Jet Blue Case Studyopinion essayThe first initiative that they were able to gain in competitive advantage was the reduction of costs. They have been able to use an online system where consumers can reserve tickets avoiding which avoids using travel agents. Having this systems reduces costs for the company as well because they do not have to hire nearly as many as employees. Along with buying tickets, JetBlue has been able to use other systems to reduce costs which helps them with the maintenance of their planes and organizing information that involves every aspect of their business ranging from their planes to their employees and consumers. The second initiative that JetBlue uses is the creating of new services. By creating their new online services and systems they are able to gain competitive advantage because it allows easier and less expensive accessibility to their services. Not only have they created new services but they are able to differentiate these services from their competitors because of the easiness and quality of the services that they do provide. They not only focus on making their services the best but also the highest level of customer service that they can offer which other airlines struggle to do. Other competitors have realized that JetBlue is beating them in many aspects in the business that they have needed to adjust what they are doing to catch up. Even with the jumps in technology use with the other companies, JetBlue has still been able to enhance their services to continue to gain competitive
In this essay, the author
- Describes jetblue's three generic strategies (cost leadership, differentiation, and focus) and explains how information systems are used to support its strategy.
- Explains that jetblue follows the differentiation generic strategy in their business, which focuses on persuading consumers that a service or product is better than its competitors.
- Explains jetblue's maintenance management system, dash group, and blue performance, which maximizes performance and reduces costs, making them a huge competitor.
- Describes jetblue's three generic strategies (cost leadership, differentiation, and focus) and explains how information systems are used to support its strategy.
- Explains that jetblue follows the differentiation generic strategy in their business, which focuses on persuading consumers that a service or product is better than its competitors.
- Explains jetblue's maintenance management system, dash group, and blue performance, which maximizes performance and reduces costs, making them a huge competitor.
- Describes jetblue's eight initiatives to gain competitive advantages discussed in chapter 2.
- Explains how jetblue gained competitive advantage through four of the eight initiatives. the first initiative was the reduction of costs and creating new services.
- Analyzes how ford failed to investigate all of the legal implications of their initiative and familiarize themselves with the level of technology the world was familiar with.
- Asks whether a company should be first-movers or followers in adopting information technology.
- Opines that a company should follow the bleeding edge in adopting information technology.
- Opines that they agree with mr. bersin's argument that we have entered the age of the software economy.
1470 wordsRead More - Southwest Airlines: A Case Analysisopinion essayHaving a low amount of cost in their operations is one of the contributing factors in Southwest Airlines’ financial success. Such low cost model of the corporation is brought about by an effective strategy. Southwest uses only one type of aircraft – the fuel-efficient Boeing 737. This tactic keeps training and maintenance costs down. Moreover, the no-frills approach to customer service contributed to the low cost of operations for Southwest. The airline does not serve meals on board, and there are no luxurious or first class seats offered. Services like these have been seen by the airline as unnecessary for an airline that provides a short-haul trip from city to city. By these, Southwest were able to offer low price tickets to customers, which was good for the company because most people would prefer to fly without those services mentioned if it meant for cheaper ticket price.
In this essay, the author
- Analyzes southwest airlines' financial stability and its ability to make decisions and adjust policies that other heavily burdened airlines may not be able to imitate.
- Explains how the low cost model of southwest airlines is brought about by an effective strategy. the airline uses only one type of aircraft — the fuel-efficient boeing 737.
- Explains that southwest offers no-frills, but there is still a high degree of customer satisfaction that continuously builds customer loyalty for the company. southwest's employees treat their customers well and listen to their needs.
- Analyzes southwest airlines' financial stability and its ability to make decisions and adjust policies that other heavily burdened airlines may not be able to imitate.
- Explains how the low cost model of southwest airlines is brought about by an effective strategy. the airline uses only one type of aircraft — the fuel-efficient boeing 737.
- Explains that southwest offers no-frills, but there is still a high degree of customer satisfaction that continuously builds customer loyalty for the company. southwest's employees treat their customers well and listen to their needs.
- Explains that southwest airlines is well-known for having a productive and loyal workforce. the company maintains good employee relations because they believe that if employees are happy, satisfied, dedicated, and energetic, they'll take care of the customers.
- Opines that southwest airlines is not without weaknesses, such as its use of only the boeing 737 airplane, which contributes to low training and maintenance costs.
- Explains that southwest airlines currently serves only a few states in the us, mostly in south america. this limited area of service limits the number of geographic markets for the company.
- Explains that southwest airlines has consistently been profitable because of its no-frills approach and low-cost model, unlike other airlines that are experiencing bankruptcy.
- Explains that the airline industry has very high barriers to entry, which makes it difficult for new entrants to enter the industry. southwest can minimize the likelihood of additional competition, thus sustaining its market share.
- Opines that southwest airlines is a target of competitors' focus, but it is disadvantageous for the company in the long run if other airlines try to imitate its cost efficiency strategies.
- Explains that terrorists are one of the greatest threats for people to lose faith on the airline industry. airline companies in the us can attest to that after experiencing the 911 attack in 2001 were incurred major losses.
- Opines that southwest airlines' weakness is its geographical market limitation. the steep competition in the airline industry may be one of the reasons.
- Opines that the success of southwest airlines could entice competitors to emulate their strategies. by copying them and making some added strategy modifications, other airlines could offer low rates price plane tickets to the areas covered by southwest.
- Recommends that southwest airlines take full advantage of its financial stability and profitability to expand its operations by extending its services to new territories, purchasing additional aircrafts and upgrading some facilities to make a few changes in which the airline’s aesthetics would be more accommodating.
- Opines that it is important for the company to improve some of its strategies in order to respond to what could be the possible changes in their environment.
1537 wordsRead More - Spirit Airlines: An Unorthodox Airlineanalytical essaySpirit addresses “price” by attempting to get the lowest possible fair for their potential customers. They have instituted their “unbundling” strategy that essentially removes all the conveniences that other airlines afford. Fees for checked bags, fees for flight changes, and no complementary in-flight beverages are just a few of the cost-trimming techniques employed. This strategy allows Spirit to come up with impossibly low fares. It also conforms to customers who just want to get from point A to point B without paying extra for services they don’t use. This strategy, coupled with an in-your-face “promotion” ploy, has made Spirit Airlines “the most profitable airline in the U.S.” (Nicas, 2012).
In this essay, the author
- Analyzes how spirit airlines' marketing strategy addresses all four p's, but they focus on price and promotion, taking advantage of social issues and breaking news.
- Analyzes how spirit airlines addresses "price" by attempting to get the lowest possible fair for their potential customers. their "unbundling" strategy removes all the conveniences that other airlines afford.
- Analyzes how spirit airlines' unabashed ad, "the weiner rises again," is one of many that ride on the waves of social media hype to get the attention of the customer.
- Analyzes how spirit airlines' marketing strategy addresses all four p's, but they focus on price and promotion, taking advantage of social issues and breaking news.
- Analyzes how spirit airlines addresses "price" by attempting to get the lowest possible fair for their potential customers. their "unbundling" strategy removes all the conveniences that other airlines afford.
- Analyzes how spirit airlines' unabashed ad, "the weiner rises again," is one of many that ride on the waves of social media hype to get the attention of the customer.
- Explains that 60% of spirit's routes overlap with american airlines. spirit tries to identify themselves as the lowest possible fare to vacation spots in the caribbean.
- Opines that spirit airlines' "product" is the most ignored puzzle piece because it takes a direct hit in quality to get such low-fares for pricing.
- Analyzes how spirit has proven that shameless marketing, unbundling of services, and timely advertising schemes get attention, even when faced with public upheaval and behemoth competition.
- Explains that spirit airlines released an ad featuring anthony weiner as amasked hot dog.
- Explains that a stingy spirit lifts airline's profit.
618 wordsRead More - Jetblue Strategic Managementopinion essayTechnology/Innovation: R & D essential in creating efficiencies and reducing expenses with turn-around times, fuel costs, reservations etc
In this essay, the author
- Explains the scope of competitive rivalry between major carriers and legacy carriers. legacy carriers developing low-cost offshoots.
- Explains the degree of vertical integration of some airlines, including sabre holdings and galileo international.
- Explains that industry profitability is subpar to above average; fuel and maintenance costs, a growing senior staff division, unionisation of employees and competitive price wars are margins concerns.
- Explains the scope of competitive rivalry between major carriers and legacy carriers. legacy carriers developing low-cost offshoots.
- Explains the degree of vertical integration of some airlines, including sabre holdings and galileo international.
- Explains that industry profitability is subpar to above average; fuel and maintenance costs, a growing senior staff division, unionisation of employees and competitive price wars are margins concerns.
- Explains hrm is a culture/philosophy of treating employees well and promoting company profit sharing, high productivity of people and rapid advancements.
- Explains jetblue has produced a financial loss for the last two years of the case study.
- Opines that as the company grows its flat organisational structure will have to develop to handle the chain of command as well as continue.
- Compares southwest and jetblue's two types of planes, which erode profits due to maintenance, training, and staffing issues.
- Explains that r & d is essential in creating efficiencies and reducing expenses with turn-around times, fuel costs, reservations etc.
- Explains the threat of new entrants and existing airlines during downturns in industry.
- Explains that inbound logistics is low cost, simple to use cost effective reservations system, ticketless travel, pre-assigned seating, paperless cockpits, search engine optimisation, and blueturn; minimising ground time.
759 wordsRead More - Jet2 Case Analysisexplanatory essayDue 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.
In this essay, the author
- Explains that this british airways site was used to compare low-cost airlines to international high-quality airlines.
- Explains that jet2's website focuses on the general airline market, but this is worldwide, and therefore had limited relevant information, as it operates within european routes only.
- Explains jet2's home website, where bookings and timetables can be made, and the company’s mission statement, background information and aims for the future.
- Explains that this british airways site was used to compare low-cost airlines to international high-quality airlines.
- Explains that jet2's website focuses on the general airline market, but this is worldwide, and therefore had limited relevant information, as it operates within european routes only.
- Explains jet2's home website, where bookings and timetables can be made, and the company’s mission statement, background information and aims for the future.
- Links to a report on the increasing number of travel agents.
- Explains jet2's emphasis on low costs, safety and reliability to ensure a satisfied customer base and increase its potential revenue.
- Explains that jet2 is a low-cost operator with close links to the main four travel agents, thomson holidays, thomas cook, first choice, and my travel. however, there are weaknesses which restrict their performances and revenues.
- Opines that jet2 must capitalise on customer trends by flying to more destinations within europe.
1206 wordsRead More