Jet Blue Case Study Analysis

Submitted by: Submitted by

Views: 2761

Words: 3481

Pages: 14

Category: Business and Industry

Date Submitted: 02/02/2011 01:38 AM

Report This Essay

Question 1.

 What was David Neeleman’s original strategic vision for Jet Blue?

David Neeleman’s original strategic vision for JetBlue Airways was to provide low cost flights to the American public whilst at the same time providing them with top-notch customer service (Cohen; 2007) . His strategy was characterised by actions aimed at gaining sales and market share via lower prices and increased product differentiation (Thompson, Strickland and Gamble; 2010). This vision to create a comfortable and yet cost efficient form of travel was best embodied in the motto “bringing humanity back to air travel.”

Neeleman was able to deliver on this promise by adopting an attractive and differentiated marketing mix from other industry players at the time. Tactics employed included:

− Being the only low-cost airline that provided gourmet snacks, assigned leather seating with more leg room and superior on-board service by offering each passenger free Direct TV and XM satellite radio entertainment.

− Attracting and motivating a talented workforce that focused on customer satisfaction and exceeding consumer expectations.

− Maintaining low operating costs by:

o Initially operating a new single-model fleet of cost efficient Airbuses 320 that required less maintenance and training of pilots in multiple model fleets. This had the effect of reducing costs.

o Making use of extensive technology that allowed for e-Ticketing and employing full-time reservation agents who worked from home allowing JetBlue to maintain a small office in Salt Lake City focused mainly on training.

By pairing the above low-cost strategy with superior service, JetBlue was about the only airline that was able to remain profitable even after the September 11 2001 World Trade Centre attacks. Their strategy enabled them to contain their total operating costs and yet at the same time provide their customers quality service at a reasonable price.

 Should JetBlue’s strategic vision be revised now that the...