Jetblue Airways Managing Growth Essay - 2204 Words

Jet Blue Airways; Managing Growth 1. Jet Blue ´s Business- level strategy; value and cost drivers Jet Blue uses to create and maintain ist competitive position Founded by the discount airline veteran David Neeleman in 2000, JetBlue Airways has quickly become one of the largest discount airlines in the United States. Starting primarily by serving the East Coast, the airline has since expanded throughout the country and entered the international market. The reasons for its early success are numerous: JetBlue entered the market with one of the largest levels of liquidity of any start-up airline; it met the needs of customers’ whose primary concerns are price and route; and it successfully defined its brand and differentiated itself†¦show more content†¦Therefore, Southwest as well as Jet Blue are considered as low cost carriers (LCC). Jet Blue offers fares up to 65 per cent lower than legacy competitors. Jet Blue Airways positions itself by connecting large, typically northeastern, US cities with warmer cities in the southeast. Jet Blue ´s emphasis is like Southwest ´s on low fares and point to point transportation. Jet Blu e entered the market like Southwest with only one machine, the A320. In this way they could ensure serving a variety of medium- and long-haul routes and numerous overnight flights. Jet Blue could also standardize its training and servicing processes around the aircraft. This allowed them to gain flexibility in scheduling and capacity management. Another feature for customers to make travelling with this airline more attractive are added comfort features such as assigned seating, leather upholstery and satellite TV on individual screens in every seat. Their key principle was that flight cancellation should be avoided at all costs. In 2005, Jet Blue broadened their portfolio in entering the market of medium-sized cities, which was served only by regional airlines. They entered this market using a new midsized aircraft called E190. In launching this new machine, they were able to use synergy of combining the A320 and the E190 profitably while serving now smaller and bigger airports. Th is portfolio mix gives Jet Blue a yet matchless, strategic competitive advantage compared to the other airlines.Show MoreRelatedJetblue Airways : Managing Growth3213 Words   |  13 Pages JetBlue Airways: Managing growth Situation Identification: †¢ The growth rate of JetBlue should be slowed down under the circumstance of insufficient cash flow and increasing fuel price. †¢ Decisions needed for whether to keep dual fleets A320 and E190 or not. †¢ Enhanced information system needed for JetBlue in case of future â€Å"Valentines’ Crisis†. †¢ Customers’ bill of rights should be introduced and developed in depth. Summary: Jet-blue Airways is American low cost airline head quartered nearRead MoreJetblue Airways: Starting from Scratch - Case Analysis Essay1125 Words   |  5 PagesExecutive Summary JetBlue Airways, the latest entrant in the airlines industry has gone through the initial stages (entrepreneurial and collectivity) of the organizational life cycle rapidly under the successful leadership of David Neelman. JetBlue Airways is currently in the formalization stage of the life cycle where in it needs to create procedures and control systems to effectively manage its growth. Also as it proceeds to grow further to reach the elaboration stage, JetBlue needs to continueRead MoreJetblue Airways: Starting From Scratch - Case Analysis Essay1121 Words   |  5 PagesExecutive Summary JetBlue Airways, the latest entrant in the airlines industry has gone through the initial stages (entrepreneurial and collectivity) of the organizational life cycle rapidly under the successful leadership of David Neelman. JetBlue Airways is currently in the formalization stage of the life cycle where in it needs to create procedures and control systems to effectively manage its growth. Also as it proceeds to grow further to reach the elaboration stage, JetBlue needs to continueRead MoreJetblue Essay1552 Words   |  7 Pages2) What different approaches can be used to value JetBlue’s shares? 3) At what price would you recommend that JetBlue offer their shares? Potential Questions to be addressed in report submission * What is an Initial Public Offering and why is it such a big deal? * Is going public, particularly at the time they did, a good idea for JetBlue? * What do you believe JetBlue stock is really worth? * Does the financial forecast in case Exhibit 13 seem reasonable? * What areRead MoreJetblue Case Study Essay970 Words   |  4 Pages1. Describe the â€Å"JetBlue Experience.† How is it related to the company’s overall business strategy? With the JetBlue Airways experience, passengers enjoyed free amenities such as watching live satellite TV, listening to XM satellite radio, brand name snacks, coffee and drink. Passengers can also experience paperless ticketing, assigned seating with more legroom. These experiences have helped to streamline JetBlue’s business strategy as being the best customer service in the airline industry. Read MoreJet Blue Airways1881 Words   |  8 Pagesï » ¿ Jet Blue Airways DeVonne Boler Christina Brown Terrel Davis I. Problem Statement Jet Blue Airways owner, David Neeleman, understands the difficulty that comes with trying to break into the airline industry. Being as though the airline industry is expensive, will David Neeleman be able to start an airline that has low ticket costs, technology driven, and customer friendly atmosphere while still competing with other airlines? II. Analysis Jet Blue Airways was first introduced inRead MoreJetBlue Airways IPO Essay1141 Words   |  5 PagesJetBlue Airways IPO In April 2000, JetBlue first started in New York City’s John F. Kennedy Airport. Even after the 2001 terrorist attacks, company remained profitable and was growing aggressively. To support their growth and offset portfolio losses by their venture capital investors, management was ready to raise additionalRead MoreValue Added Markiting4538 Words   |  19 PagesUse the case study on Blue Jet Airways to perform the 6 following tasks ABP Level 7. PgDBM Value Added Marketing Assignment 1. Understand market value from different perspectives in an organisation of your choice. You|Learning outcomes|| may use examples of organisations you have worked for or you are familiar with.|and assessment|| ||criteria|| |||| 1(a)|Explain the nature of value added marketing with regard to tangible and intangible|1.1|| |dimensions.||| 1(b)|Illustrate how serviceRead MoreJetblue Airways Ipo Valuation3506 Words   |  15 PagesRunning Header: JetBlue Airways IPO Valuation JetBlue Airways IPO Valuation Borislav Belenov, Wade Brashear, Jamie Clausen, Paul Collier, Nicole Hagan and Melissa Lein Managerial Finance Chadron State College Professor Steve Stoner May 2009 David Neeleman is the founder of JetBlue Airways, which began under the name of â€Å"New Air† in 1999. Many JetBlue executives were previously employed by Southwest Airlines, a competitor in the area of low cost travel. However, Mr. Neeleman’s vision wasRead MoreQuestions1478 Words   |  6 Pagessegment? If so, is its advantage sustainable? Discuss the sources of competitive advantage and use the VRIO framework to evaluate True Religion and its major competitors. JetBlue Airways: Managing Growth The JetBlue case gives students the opportunity to apply concepts in cost leadership. At the time of the case, JetBlue has enjoyed a meteoric rise to success in the airline industry by coupling a low-cost strategy while giving customers the sense that they are actually providing better features