Jetblue Airways

Percival Supria

Bus. 630: Managerial Accounting

JetBlue Airways

Dr. Oscar Lewis

May 14, 2012

What is JetBlue’s strategy for success in the marketplace?  Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition?  What evidence supports your conclusion?

JetBlue’s strategy for success in the marketplace is based on their goal which is to “establish JetBlue as a leading low-fare, low-cost passenger airline by offering … high-quality customer service,… a differentiated product,… low fares, and a continuous focus on cost-containment and operating efficiencies” (JetBlue’s 10-K/A, 2005, page 1). The airline believes that by offering travelers low fares and a low cost alternative, the demand for its product will increase. The company also emphasizes low operating costs which, it maintains, contribute to keeping unit costs down. JetBlue also researches and targets areas that have little travel, as well as those with high travel and high costs (JetBlue’s 10-K/A, 2005, page 1). This kind of research opens up a new travel point for the airline. JetBlue also focuses on offering a more luxurious travel accommodation, which, it insists, is vital to maintaining innovativeness and keeping ahead of its competitors.

The airline also feels that other reasons for its success include the healthy and honest relationship it has with its customers, excellence in how it operates, product and service leadership, and its customer value. Another factor that contributes to the airline’s success is the fact that the company ensures that it hires honest, friendly workers to give the ultimate in customer satisfaction, and that it offers extra amenities during the flight – including leather seats, reliable operating performance and free Live DIRECTV at every seat (JetBlue’s 10-K/A, 2005, page 1) - which enhance product leadership and highlight the value the company places on its customers.

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