JetBlue Airways: Adding Value

Paper Summary:

In this article, the writer notes that the airline industry is characterized by a high level of competitive intensity and therefore JetBlue Airways has to constantly reengineer its internal operations in order to build and maintain a competitive edge. The writer notes that in this respect, the strategic focus of the company is cost minimization. The company is implementing the strategy of focus by targeting underserved markets while it is implementing the strategy of differentiation by adding value-added survives to its repertoire. The writer discusses that the reasoning behind choosing to adopt these strategies has been to locate opportunities for ensuring customer satisfaction through focusing on areas of the market which have not been targeted by competitors. The writer concludes that as a result, JetBlue manages to charge lower prices than many of its competitors while maintaining comparable standards of quality.

From the Paper:

"This focus has enabled the management to promote unique strengths of JetBlue Airways. The management has built these strengths in order to capitalize on the most common weaknesses of other airlines. These weaknesses on their part have caused a considerable level of customer dissatisfaction. These were the opportunities that the management identified in developing its products and services. In creating this strategic orientation, the management followed the business model of Southwest Airlines which kept its costs low by eliminating meal services. Therefore JetBlue had to focus on other things such as quality of personal service and state-of-the-art revenue management system in order to maintain customer service. The strategic focus of offering these products and services meant that customers were able to access special facilities at this airline.
"Employees are the most important assets of an organization and therefore it is a critical consideration for the management to create the kind of organizational culture which aligns employee interests to organizational interests."

Sample of Sources Used:

• Aaker, David A. (2004). Strategic Market Management. McGraw Hill/Irwin.
• Armstrong, Michael. (2005). Strategic Human Resource Management. Prentice Hall.
• Evans, James R. (2004). Total Quality: Management, Organization, Strategy. McGraw Hill/Irwin.
• Fred, David. (2006). Strategic Management: Concepts and Cases. Prentice Hall.
• Hill, Charles., and Gareth Jones. (2007). Strategic Management Theory: An Integrated Approach. McGraw Hill/Irwin.

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