Jet Blue

Jet Blue Airways

BUS 599

May 11, 2011

Dr. G. Stan Reeley

Discuss the trends in the US airline industry and how these trends might impact a company’s strategy?

There are many trends that the airline industry is experiencing. The trends include undeveloped pilots, high fuel costs, and an increase in competition. The airline industry is finding it difficult to control cost and maintain their position in the industry. With the increase in fuel costs, smaller airlines are going out of business or being forced to merge with other airlines to increase their customer base. It has also prohibited airlines to have an accurate budget planning, forcing them to create other ways to generate revenue. JetBlue had to continually change their company’s strategy to widen their customer base and maintain a competitive advantage.

Discuss JetBlue’s strategic intent

David Neeleman’s strategic intent of JetBlue was to start a company that would combine low fares with the comfort of a small cozy den. They would save money and enjoy gourmet snacks in leather seats (Thompson, Strickland, Gamble, 2009). A core concept on strategic intent stated, “A company exhibits strategic intent when it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective” (pg. 36). I believe JetBlue was consistent and determine to fulfill their strategic intent despite obstacles.

Discuss JetBlue’s financial objectives and whether or not the company has been successful in achieving this objective

JetBlue was very promising at the beginning, but by the end of December 2007, they did not deliver value to their shareholders. Revenues grew 185% from 2003 to 2007. However, operating expenses grew by 222% and Jet fuel grew by 532% during that same period (Thompson,...