Jetblue Essay

818 Words4 Pages
JetBlue Airways 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 strives to be the leading, lowest fare, lowest-cost passenger airline by offering excellent customer service and a differentiated product and service. 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? What are some examples of control activities that the company could use to reduce these risks? (Hint: Focus on pages 17-23 of the 10-K/A.) Any organization faces threats that sometimes are beyond their control. Some of the threat that JetBlue may face that would threaten their ability to satisfy stockholder expectations would be the increase in fuel. JetBlue may also face threats from competitors that may try to offer lower prices since the industry is still growing. JetBlue can seek to lock-in contracts with fuel suppliers that will help them control the expense of fuel. By locking in the price with a contract they will be able to predict their cost for the term of the contract and also be able to maintain lower prices than other airlines that are not on contracts. JetBlue also needs procedures in place to monitor the industry and be willing to change and adapt to

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