Jetblue Analysis

Jet Blue Case Analysis

Les Navarro

Embry Riddle Aeronautical University

Entrepreneurship and Leadership

MGMT 671

Dr. Stuart Childers

July 11, 2014

Jet Blue Case Analysis

When JetBlue Airways was created it was built on innovation, technology and the belief that outstanding service at an affordable price was the key to success. The founder of JetBlue, David Neeleman, knew that success could only be achieved by building a team that was fully committed to a set of values. The center of those values are the people who make up JetBlue. When building people centric organizations “…the most important element is caring. I want JetBlue to care about our people from end to end.” (Gittell & O’Reilly, 2001, p. 9) Generally, the business model for starting a company typically includes such details about the operations such as expenses, revenues, operating strategies, corporate structure, sales, and marketing. ("WiseGeek," 2013, p. 1) JetBlue however, chose to concentrate their business model on providing superior service at a low price with a cast of crew members (employees) dedicated to each other, JetBlue, and their customers. The purpose of this analysis is to validate JetBlue’s innovation and “people centric” business model and determine if it can sustain long-term success.

INNOVATION AT STARTUP. When it comes to innovation few companies can compete with JetBlue’s trail blazing commitment to making air travel more efficient for the company and customer alike. JetBlue offered a single-class of seat to travelers that cost 65% less than the competition. This could be done because of the innovative ideas initiated by JetBlue that improved efficiency. A few of the innovative “people centric” ideas; all assigned seating, ticketless travel, and no discounted fares. By not offering discounted fares, last minute walk-in travelers enjoy the same low fare as any other passenger no matter how far in advance the ticket is purchased. Another idea that...