Analysis of Jetblue Airways

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Date Submitted: 01/16/2012 08:44 PM

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Crafting and Executing Strategy

BUS 599: Crafting and Executing Strategy

January 10, 2012


The purpose of this paper is to evaluate the business strategy of JetBlue Airways. It consist of five sections each explaining in detail its portion of the JetBlue Airways case study. First the trends in the U. S. airline industry and how these trends might impact a company’s strategy are examined. Second JetBlue’s strategic intent prior to 2008 is addressed. Third JetBlue’s financial objectives and whether or not the company has been successful in achieving these objectives, fourth Jet Blue’s strategic elements of cost, organizational culture, and human resource practices and whether each element provides the organization with a competitive advantage, and fifth discuss JetBlue’s strategies for 2008 and beyond and evaluate whether or not JetBlue will be successful implementing these strategies.

Analysis of JetBlue Airways

On February 11, 2000, JetBlue launched its first ceremonial flight between Buffalo and New York City, making John F. Kennedy international Airport its hub. Since that time, the company has evolved into a billion dollar corporation. The purpose of this report is to examine JetBlue’s business strategy and its likelihood to survive.

Trends in the U.S. airline industry and impact on strategy

Airline industry is a clearly structured industry. Trends in the U.S. airline industry have an impact on the performance and strategies of the airlines. U. S. airline industry trends including increased crude oil prices, new technology advancement and impact on post 9/11 aviation securities.

Crude oil pricing and passenger fees. In 2008, crude oil prices increased to a record $140 per barrel (Thompson, Strickland, & Gamble, 2009). This price increase caused airlines to struggle to offset the cost of fuel. When the crude oil price increased they began to increase passenger fees for heavy bags,...