Exploitable- JetBlue could design the interior of the aircraft to improve passenger comfort and use E190 as an useful tool to expand market and attract new customers. Implication: The E190 provided a unique opportunity for the growth of JetBlue. However, this plane did not completely match the company’s current capabilities and costed a lot. Thus the CEO of Jetblue must change their strategic strategy to either keep E190 as a VRINE resource or sell it. Capability 1: High level of service (Bill of Rights) Valuable-
JetBlue’s strategy for success is product leadership with customer value proposition. With their strategy they promise their customers high-quality customer service at a low fare on primarily point-to-point routes. This is evidenced by the fact that JetBlue has one of the largest load factors in the United States. JetBlue implements this strategy by having a productive workforce, having low distribution costs, flying the same type of aircraft, and utilizing their aircraft effectively. What business risks does JetBlue face that may threaten the company’s ability to satisfy stockholder expectations?
The core concepts of Jet blue lay mainly customer value and product leadership. Jet blue operates under a concept of offering a lower, more affordable option to consumers while not letting the value affect the levels of service. The accessibility of the airline creates an aura of extended service by providing contact to limited locations that traditionally can only be reached with the sacrifice of high fares. In order to make logical profitable, business model Jet blue operates an efficient load factor by maximizing the percentage of aircraft seating capacity. (Jet Blue, 2005).
It is consistently ranked as one of the top Fortune 500 brands. Southwest is renowned in the airline industry for its short turnaround time on arrivals and departures, and on-time flights. Many people recognize the reputation Southwest Airlines has in the airline industry and it appeals to many customers and potential fliers. The reputation and recognition of Southwest Airlines is enough to support the ad. The advertisement goes after the common sense of the reader because it is very simplistic.
After deregulation, airlines were able to operate routes without restrictions, and pricing for tickets was not controlled. Similar to the U.S., a proliferation of failures and bankruptcies occurred. A new breed of air carriers resulted known as Low Cost Carriers (LCCs). Two airlines emerged in the LCC war in Europe, Ryanair (RYAAY), and Easyjet (EZJ). Both airlines adopted the business model of Southwest Airlines in the U.S. of cost reductions.
These intellectual property laws are recognized for major contributions to society and the economy. Recently intellectual properties have been credited with the majority of companies’ success, therefore catapulting intellectual properties to the forefront of our social and economic interest. Southwest Airline owns the rights to certain intellectual properties that allow it to stand out among its competition. If a company, especially one in such a highly competitive industry, does not have exclusive rights to certain aspects of its operation than it is extremely difficult to compete. The airline industry seems to be one those that it is very difficult to obtain intellectual properties, especially when dealing
Systems-Boeing adopted the principles of creating more value for customers with fewer resources. 4. Style-the decision was made to diversify from the traditional commercial airline industry and that many acquisitions that were made create integration issues for the company. They were trying to add more stability to the business by entering the space industry and information services. The Six-Box Organizational Model key factors focus on six variable- purpose, structure, rewards, helpful mechanisms, relationship and leadership.
Considering the information provided in the case, McPherson himself made some assumptions that the airline flying to London should have identified him off their computer as a close- connecting passenger and that considering the fare paid by a passenger like him; he should have been placed in a moderately loaded flight. 3. Strategic issues as to London-based airline's strengths and weaknesses and competitive concerns. While the company is operating below the expectations of clients as to its core functions (as indicated by delays of flights and some ineffectiveness of some agents and other maintenance personnel), the London-based airline is strong in terms of its attached services (e.g. after-flight services).
It comes to a surprise that US Airways Group is capable of doing so well despite the low quality of service they seem to provide. US Airways Group has recently merged with a competitor within the airline industry, American Airlines, and the two companies are expected to do very well as a team. The airline industry is one of a kind, as it does not have very much competition within the industry. As US Airways Group has shown; the little amount of competition makes it easy to do well even with poor service. The airline continues to grow and keep companies like US Airways Group in business mainly due to the rapidly growth of the industry.
(Argenti, 2009, p.100)It is obvious that David Neeleman and JetBlue set out to exceed customer satisfaction and ingeneral, tend to go above and beyond what the average airline has to offer. However, it seemsthat their goal of excellent customer service was higher in importance than teaching theiremployees how to communicate in emergency situations, such as the one presented to us in thecase study. It is essential for companies to find a competitive advantage to set themselves apartfrom other companies in their industry, however it is also crucial for these companies to find abalance and continue to value the basic fundamentals of communication.Data AnalysisJETBLUE AIRWAYS CASE STUDY ANALYSIS 3 • 2. JetBlue went from startup company to powerhouse of the sky in 2007 with overall growthin terms of destination and size. Run by CEO David Neeleman’s expertise and experience in theindustry, the