Competitive analysis future of jetblue airline industry is highly competitive and is particularly susceptible to price discounting because airlines incur only nominal costs to provide service to passengers occupying otherwise unsold seats. Jetblue is a low-cost domestic airline in the united states that utilizes a combination of low-cost and value-added differentiation as its market strategy from its launch in february 2000 to the time of the case, the airline grew to become the 11th largest player in the airline industry in a short span of 4 years. Main competitors southwest airlines american airlines united airlines sustainability most airlines have experienced financial difficulties resulting in bankruptcies, merges and consolidations following the 9/11 crisis and economic recession in the early 2000's.
Investor overview general jetblue airways corporation, or jetblue, is new york's hometown airline™ in 2013 jetblue carried over 30 million passengers with an average of 800 daily flights and served 82 destinations in the united states, the caribbean and latin america. Jetblue airways brand is studied in terms of its swot analysis, competitors segmentation, targeting and positining(stp) have also been covered along with usp and tagline. Jetblue business overview, strategy & analysis jetblue airways is a low cost, low fare, high quality service domestic airline with point- to-point service on both short haul and long haul routes. Airline jetblue airways offers one-class service -- with leather seats, satellite tv from directv, satellite radio from xm, and movies -- to more than 38 million passengers a year, and taking them to more than 100 cities.
Jetblue airlines strategic management case analysis introduction to the company history of the firm jetblue was established in 1999, and was the third airline start-up for founder and ceo david neeleman. Jetblue airways analysis case solution general situation of the organization jetblue airline is one of the leading airline companies in the united states which operates on the basis of the low cost principle. Jetblue has set out short-term plans such strategic partnership with other airlines in line with providing satisfactory flight services to its customers the partnerships are aimed at enabling the clients of both partners to make flight connections faster and easily to destinations one partner has no route to. Jetblue airways: winning the customer service game transitioning to a more customer-focused culture introduction when an organization sets a vision as audacious as become the americas' favorite airline by bringing humanity back to air travel, it is making a firm commitment to deliver an experience in service that is unrivaled.
The high level executive are there to discuss and tell stories initially about the airline's corporate culture, but soon the talk branches out into history, customer service, and strategy. I will use 107% as my growth rate for this analysis, as i believe jetblue can achieve that growth over the next three years with the 3% discount rate, jetblue's true cagr would be 77. Jetblue airways corporation is an american low-cost airline the company was founded by david neeleman in february 1999 it serves more than 60 destinations in 21 states and eleven countries in the caribbean and latin america. Pricing wars between airlines exist at many large hubs when industry growth is slow it attracts low margins as competitors fight for market share the price of oil has a significant impact on travel because the higher oil is, the higher an airline charges for tickets to try and recoup their business operation costs.
Jetblue remains one of the most well run airlines in the county its fleet, one of the youngest and most fuel-efficient in the industry, also has some of the best amenities for a value airline as a result, the company has been posting strong sales and earnings gains in recent quarters. Swot analysis on jetblue airways discuss swot analysis on jetblue airways within the principles of management ( pom) forums, part of the publish / upload project or download reference project category jetblue airways corporation is an american low-cost airline. Jetblue airways, inc (jetblue) is a low-cost carrier (lcc) that is based in new york's john f kennedy international airport the founder, david neeleman, developed jetblue's.
In the 18 months since he was elevated to the top job at jetblue airways, robin hayes has learned what it is like to manage a small, close-knit company that sees itself as an industry disrupter. Cost savings of lca compared to fsa (doganis 2006) 7 chapter 4 analysis: jetblue airways (1999-2003) 41 jetblue airways brief jetblue airways, a low-fare, low-cost domestic airline based in new york, was incorporated in delaware in august 1998. Jet blue decided to take a conservative financial strategy in which they maintained high liquid ratios relative to the other major airlines (thompson et al, 2010) jet blue was millions behind the competitor but developed new equity capital and credit, which was needed to keep the company, and allow them to maintain strong liquidity.
Case study on jetblue airways management essay jetblue airways is an american low-cost airline owned by jetblue airways corporation the company is headquartered in the forest hills neighborhood of the new york city borough of queens. Jetblue airways corporation - strategy and swot report, is a source of comprehensive company data and information the report covers the company's structure, operation, swot analysis, product and service offerings and corporate actions, providing a 360˚ view of the company.
Current strategy of jetblue airlines 1 goals and performance targets - the strategy of jetblue airlines has been to position itself as a leading low fare and low cost passenger airline through provision of high quality customer service as well as differentiated products towards their clients. Jetblue airways and southwest airlines focused on reducing the costs and offering cheaper products new, low-budget flights offer many different amenities during the journey gourmet sandwiches, $5 martinis, free tv leather seats are standard now in the low budget airline industry. Jetblue airlines' success story - jetblue airways, the case describes the reasons for the success of jetblue, a three-year-old, low-cost airline, operating in the usa jetblue was set up by david neeleman, who earlier founded a very successful discount airline called morris air in utah. Analysis of jetblue airways 1 running head: analysis of jetblue airways strategy for jetblue airways assignment1 felicia littlejohn bus 599 july 9, 2010 analysis of jetblue airways 2 abstract the purpose of this paper is to evaluate the business strategy of jetblue airways.