3. The low-fare airlines strategy contributes a lot to the success of JetBlue. * JetBlue imitates Southwest Airlines to operate low-fare model that includes high-frequency, short-haul, point-to-point, low-cost service strategies. 4. JetBlue provides advanced and technological services to the customers, aiming to establish a professional brand in airlines industry.
In the following report there is a brief introduction to Southwest Airlines and their strategy and then what, if anything, they need to do or not do to remain at the top and competitive in the airline industry. Situation Analysis Southwest Airlines was a vision that was created in response to all the highly priced airlines. Southwest has been able to withstand legal challenges, a need for additional capital and survived challenges from major airline carriers. It is a no-frills airline carrier that does not provide food, movies, reserved seats, first class or Wi-Fi. Their service strategy is based on short-haul, point-to-point direct flights that are accomplished with amazingly short turnaround times.
Much of the credit for fun in the workplace is credited to Herb Kelleher, co founder and CEO, for his creative ideas and warm personality. Southwest Airlines CEO hugs and kisses his employees telling them how much he loves and values their work. Employees like to know that they are noticed for what they do in the workplace. Herb Kelleher’s motto in the workplace is “If you feel real good about coming to work, if you feel real good about what you are doing, if you feel you are doing something for a meaningful cause and you are having fun while you are doing it, then you look forward to coming to work, you do not succumb to stress as easily and you cooperate with other people more quickly and more easily.” This is a great motto to follow because it has been proving to work. I believe that employees want to be able to go to work and be themselves and not act the way the “company wants them to” this makes employees “uptight” and in returns makes more mistakes in the workplace.
Throughout this experience I was given an enormous amount of support both personally and professionally. As a result it has truly molded me into the leader I am today. Being in a leadership position is very important and carries with it a lot of responsibility. The leadership style I exhibit today is one that is proactive, helping my staff to implement new ideas and empower others to fulfill their greatest potential both personally and professionally. This analysis will discuss the leader’s experience with performing transformational and the impact it has on the individuals for which they manage.
SOUTHWEST AIRLINES: SUCCESS IS COMMUNICATING SUCCESS Bernard J Joy January 24, 2011 Southwest Airlines (SWA) is an example of an employee-empowered organization. The successful enterprise is dedicated to its personnel, customers, the environment, and its shareholders. Communication throughout the company adheres to the values and Mission of SWA. The success and future growth of the company depends on the culture taught and lived there, which serves as a model for other companies that choose to pursue this style of management. Historical The company was launched in 1971.
JetBlue’s mission was to profoundly known as the leading low-fare low-cost airline. This could only be accomplished by offering customer’s high-quality efficient service and a differentiated product to stimulate the current markets demand while continuing to focus on cost-containment. What business risks does JetBlue face that may threaten its ability to satisfy stockholder expectations? What are some examples of control activities that the company could use to reduce these risks? Organizational risks are specific factors (unique to every organization) that arise within all businesses; potential risks that may threaten JetBlue’s ability to satisfy stockholder expectations are jet fuel prices, retaining sufficient staff and exceeding projected operating costs.
JetBlue's core strategy is to “provides high-quality customer service at low fares primarily on point-to-point routes" (“JetBlue”, 2005). Offering alternative choices to customers such as point-to-point routes to areas that are not catered to by most airlines as well as large metropolitan areas that have had” high average fares” is another part of their strategy. Differentiating their product and service is another part of the plan. Items like new aircraft, leather seats, free LiveTV at every seat and pre-assigned seating are just a few things that make JetBlue different (“JetBlue”, 2005). I would say that JetBlue would fall under both customer intimacy and product leadership customer value proposition.
The company must concentrate on the needs of its core customer group in order to be successful with this type of business strategy. Jet Blue’s success comes from its low-prices, unique value from the services it offers, and its excellent customer service program. They build their business around the customer, and offer solutions to their needs and wants. They strive to bring to their customers a safe, fun flight experience full of unique valuable services that is supported by an honest staff. Jet Blue seems to have a reasonable strategy, but must be better aware of the external environment.
Deeply rooted within the company’s organizational culture are the values championed by James Dyson throughout his own career—innovation and creativity—taught to and emphasized by all employees as a means to infect an entire organization with an entrepreneurial drive. As Dyson attempts to remain a leader within its industry while expanding on a global scale, Dyson’s culture and values have never been more central to the company’s success. Organizational culture is an important part of any organization, and is defined as “a pattern of basic assumptions that are considered valid and are taught to new members as the way to perceive, think and feel in the organization.” (Nelson & Quick, 2013). Thus, organizations create a list of values and traits that it wants its employees to embody. The culture helps define the processes, procedures, and general “feel” of a company.
Max Nisen (2013) states that Southwest’s success comes from its founder and the emphasis that is put on culture and customer satisfaction. When Southwest started it focuses on short-haul flights at less congested airports. They didn’t offer any meals but did offer a snack of peanuts. With their short flights they didn’t require as many planes or gate facilities. All this boiled down to a low cost air travel that was able to compete with ground transportation services.