Submitted by: Submitted by praveen1107
Views: 801
Words: 419
Pages: 2
Category: Business and Industry
Date Submitted: 03/03/2011 01:01 PM
Value chain activity | How does JetBlue create value for the customer? |
Primary: | |
Inbound logistics | Web-based booking instead of booking through ticketing agents gives greater control on managing seat sales. Customers won’t get bumped. |
Operations | Paperless cockpit, no meals served, no paper tickets--all reduce time and costs. Single aircraft type keeps training costs low and manpower utilization high. |
Outbound logistics | New A320s are larger and more fuel-efficient. Less congested airports help quicker and on-time flight departures. |
Marketing and Sales | Web-based ticketing as a distribution channel. Market segment properly identified i.e., business travelers flying point-to-point. Effective pricing. |
Service | Constant communication with customer to keep them informed of changes or inconveniences. Customers are refunded sometimes when there are inconveniences. CEO travels regularly to get customer feedback first-hand. Investments in training for service orientation. |
Secondary: | |
Procurement | Well-conceived aircraft procurement plan to support growth. |
Technology development. | Investments in technology from the beginning of the airline. Process initiatives such as automated baggage handling, web-based ticketing, paperless cockpit etc., |
Human resource management | Non-unionized workforce, reward systems such as stock-option plans, profit sharing, innovative recruitment policies and culture promoting camaraderie…employees called ‘crewmembers’. |
General Administration | Top management with expertise in airline business, ability to coordinate and integrate activities across the value system, and highly visible to inculcate organizational culture, reputation and values. |
. It then offers the opportunity to conduct an internal analysis of the firm using the value chain approach or the resource-based view...