Jetblue Minicase Essay

833 Words4 Pages
JetBlue Case When first started, JetBlue was of the cost leadership type of generic business strategy, in which the company improved upon the low-fare airline business model of the SWA to reduce its cost below that of its competitors, and offered its costumers ticket with lower price. However, later JetBlue started to pursue the integration strategy in order to enhance its differential appeal while keeping costs low, but I believe its ultimate goal was to transit toward differentiation strategy. JetBlue added many new value-enhancing features and was trying to offer its customers better customer experience. However, because requirements are conflicting between cost leadership and differentiation strategies, JetBlue faced challenges pursuing the integration strategy. The first and the biggest challenge was adding unique features and services while still keeping costs and ticket prices low. Adding features such as leather seats, movies and TV, and free in-flight Wi-Fi, as well as more superior on-board service would increase production cost, training cost, and maintenance cost, thus caused lowering costs but creating higher values and improving quality to be difficult. To address this challenge, JetBlue would need to design new features with quality in mind in order to lower maintenance cost and after-sale service cost. Second challenge was the transition from the already established brand image of a low-fare airline company to a company with higher perceived value. Because customers had been used to the original business model, changing their perception of the brand was not an easy task. Enhancing differential appeal without effectively managing the fundamentally different internal value chain activities between the two strategies might cause the company to start losing costumers because of possible shifting of target customer. Yet the differentiation might not

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