Strategy of Jet Blue Case Study by scribbler

Strategy of Jet Blue
A case study of Jet Blue's strategy and competitive advantage.
# 152872 | 1,227 words | 10 sources | APA | 2013 | US
Published on Apr 30, 2013 in Business (Companies) , Business (Industries) , Aviation, Aeronautics (General)


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Description:

The paper discusses the trends in the U.S. airline industry and how these trends might impact a company's strategy, and considers Jet Blue's strategic intent. The paper examines Jet Blue's financial objectives and whether or not it has been successful in achieving these objectives. The paper also looks at Jet Blue's strategic elements of cost, organizational culture, and human resource practices, and evaluates whether each element provides the organization with a competitive advantage. Finally, the paper explores Jet Blue's strategies for 2008 and beyond and evaluates whether or not Jet Blue will be successful implementing these strategies.

Outline:
The Trends in the U.S. Airline Industry
Jet Blue's Strategic Intent
Jet Blue's Financial Objectives
Jet Blue's Strategic Elements of Cost, Organizational Culture, and Human Resource Practices
Jet Blue's Strategies for 2008 and Beyond

From the Paper:

"During the time-period the case study takes place and subsequently after, the airline industry is one of the most challenging from a financial performance standpoint to compete in due to the following factors. First, there are the continually rising fuel costs that fluctuate randomly over time, forcing fuel hedging, a strategy of buying fuel futures and hedging a high percentage of total demand (Forbes, Lederman, 2009). The case also mentions how pervasive the hub-and-spoke model is, a key factor in JetBlue's decision to lease gates at JFK in the New York area over airports that are not as well known (Aydin, Morefield, 2010). The third major factor is that to succeed in the airline industry, companies must have very aggressive cost controls in place, a strategy JetBlue also takes on during the case study's time period. The fourth major factor is the ability to create and continually improve critical internal business and operational processes over time (Kumar, Johnson, Lai, 2009). JetBlue did this through intensive investments in information technologies and process re-definition within their customer service and customer relationship management (CRM) programs including pricing optimization by segment (Hofer, Eroglu, 2010). Part of the efforts to streamline processes within airlines has been the focus on using constraint-based modeling and lean manufacturing techniques to also streamline route and planeload optimizations over time (Liou, Yen, Tzeng, 2010)."

Sample of Sources Used:

  • Paul A. Argenti, Robert A. Howell, & Karen A. Beck. (2005). The Strategic Communication Imperative. MIT Sloan Management Review, 46(3), 83-89.
  • Aydin, R., & Morefield, R.. (2010). Hub-And-Spoke Airlines Versus Low-Cost Airlines And Price Discrimination. Journal of Business & Economics Research, 8(5), 1-6.
  • Terry Bacon. (2004). You are how you behave: customers can't be fooled. The Journal of Business Strategy, 25(4), 35-40.
  • Triant Flouris, & Thomas Walker. (2005). CONFIDENCE IN AIRLINE PERFORMANCE IN DIFFICULT MARKET CONDITIONS: AN ANALYSIS OF JETBLUE'S FINANCIAL MARKET RESULTS. Journal of Air Transportation, 10(1), 38-57.
  • Forbes, S., & Lederman, M.. (2009). Adaptation and Vertical Integration in the Airline Industry. The American Economic Review, 99(5), 1831.

Cite this Case Study:

APA Format

Strategy of Jet Blue (2013, April 30) Retrieved November 16, 2019, from https://www.academon.com/case-study/strategy-of-jet-blue-152872/

MLA Format

"Strategy of Jet Blue" 30 April 2013. Web. 16 November. 2019. <https://www.academon.com/case-study/strategy-of-jet-blue-152872/>

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