Professional Documents
Culture Documents
I.
COMPANY PROFILE
JetBlue Airways Corporation commonly called JetBlue, is an American low-cost airline. The
company is headquartered in the Long Island City neighborhood of the New York City borough
of Queens, with its main base at John F. Kennedy International Airport. It also maintains a corporate
office in Cottonwood Heights, Utah. JetBlue Airways Corporation (JetBlue), incorporated on August
24, 1998, provides air transportation services across the United States, the Caribbean and Latin
America.
JetBlue Airways took off on its first flight on February 11, 2000. At that time, the company only
had two aircraft and provided service to one destination. In five years, on January 1, 2005, JetBlue
become a major U.S. airline as categorized by the U.S. Department of Transportation. The airline
achieved this status faster than any airline in aviation history. Currently, JetBlue Airways flies to 84
destinations in 12 countries and has a fleet of 151 aircrafts. The airline mainly serves destinations in
the United States, along with flights to the Caribbean, Peru, The Bahamas, Bermuda,
Barbados, Colombia, Costa Rika, Jamaica, the Dominican Republic, Mexico, and Puerto Rico. This is
very a significant milestone due to the far-reaching effects on an industry wide shakedown of cost such
as fuel and labor. In order to continue competing effectively in the marketplace, it is crucial for JetBlue
to understand the dynamics of its industries and markets.
II.
Vision Statement : To provide the best, most affordable flight experience of any air carrier
while providing superior service.
Mission statement :
Jet Blues mission is to be the leading low-fare, low-cost passenger airline offering high quality
customer service to underserved markets and customer who are looking for the best value in
their flight.
III.
COMPANY CULTURE
JetBlues Culture was founded and built on 5 simple company values, thus are:
Caring : In the form of respect and understanding, is the hallmark of who they are. It brings
the JetBlue experience to life.
Integrity : Doing the right thing; and they believe its the only way to do the business.
IV.
COMPANY GOAL
The companys goal has been to establish itself as a leading low-fare, low-cost passenger
airline by offering customers high-quality customer service and differentiated products.
They focus on serving underserved markets and large metropolitan areas that have high average
fares with a diversified geographical flight schedule that includes both short and long haul
routes.
V.
SWOT ANALYSIS
Strength
Weakness
unsaturated market
America
competitive
Opportunity
Threat
world
availability of fuel
VI.
satellite radio (from XM), roomy leather seats, snacks and beverages. The cabins would have only one
class of seats which tied into everything eluded an overall first class experience. To close, the airline
industry has a low threat to entry with little to no appeal.
VII.
Inbound Logistic
Low cost, simple to use cost effective reservations system, ticketless travel, pre-assigned
seating, paperless cockpits, search engine optimization and BlueTurn; for minimizing ground
time.
Operation
Movement of good and passengers, Aircraft maintenance, crew training, piloting, customer
service, administration.
Outbound Logistics
Completion rate. In terms of customers, the services are consumed as it is produced. Baggage
handling Hotel packages.
Service
Simple to use reservation system, ticketless travel, pre-flight conveniences, pre-assigned
seating, leather seats and extra leg room, free DIRECTV service and complimentary snacks
and comfort kits.
Core Competencies
Valuable rare inimitable Organized to take advantage Collective knowledge base, extendable
to multiple markets
The two bases of JetBlues competitive advantage are Cost Leadership and Differentiation.
JetBlue achieves cost leadership by attaining efficient operations. New planes minimize maintenance
and fuel costs, larger planes ensure more revenue per flight, longer hauls on an average as compared
to other point-to-point services keep planes longer in air. No-meals served helps quicker turnarounds
and reduce costs. Reservation agents working from home reduce need for physical infrastructure, and
thereby reduce overhead costs. Firms pursuing low-cost strategy generally get trapped in focusing on
too few of value chain activities, or lack parity on differentiation with competitors.
The low-cost advantage also gets eroded when the competitive pricing information becomes
available more easily. The strategy can be imitated too easily. The other component of JetBlues
strategy is differentiation. Differentiation is achieved through a strong brand image, the various
features such as DirectTV at each seat, more legroom etc. The problem with differentiation strategy is
that differentiating features could be easily imitated. Firms may also get entrapped in too much
differentiation, which customers may not value. Firms employing combination strategies would have
a much stronger strategy to outperform rivals. They can achieve superior performance by successfully
integrating low-cost operations with differentiation, thereby avoiding the pitfalls of either of the
strategies. JetBlue employed a combination of these two strategies and that gives it a distinctive
competitive advantage. It combined low-cost services with a differentiated offering.
The company invested in technology for efficient operations right from its inception and,
therefore, is able to provide high quality services at low-cost. Going forward, the extent to which
JetBlue can maintain this integration of low-cost and differentiation will determine whether its
competitive advantage is sustainable.
IX.
DIVERSIFICATION
JetBlue Airways has an unrelated diversification through its subsidiaries as it deals with airlines,
insurance and TV station that has no strategic fit in the value chain activities. Below is the list of
JetBlues subsidiaries until 2013:
BlueBermuda Insurance, LTD (Bermuda corporation)
LiveTV, LLC (Delaware limited liability company)
LTV Global, Inc. (Delaware corporation)
LiveTV International, Inc. (Delaware corporation)
LiveTV Satellite Communications, LLC. (Delaware limited liability company)
LiveTV is a major provider of airline in-flight entertainment systems. Originally a joint venture
of Harris Corporation and BE Aerospace (BE Aerospace's interest subsequently sold to Thales
Group), it was a wholly owned subsidiary of JetBlue Airways Corporation from its acquisition in 2002
until its sale to Thales in 2014. It has its headquarters in Melbourne, Florida.
X.
XI.
BCG MATRIX
True Blue
Program
Gift
Card
s
JetPaws
Wireless
Internet
Baggage
Stars JetBlue has done a great job of promoting free WiFi because people will make a huge deal out
of this. JetBlue probably loses money doing this, but makes up for it in the attention it receives. JetPaws
is JetBlues exclusive program designed to provide pets and their owners the tips and the tools they
need for a smooth trip from start to finish. JetBlue also appears to have the most user-friendly website,
the appearance of empathy for the desire that customers have for their pets to be safe.
Cash Cows JetBlue has an advantage to its other competitors when it comes to price for luggage and
it also become a huge competitive advantage.
Question Mark JetBlue has the lowest percentage (3,7%) and number of award issued (297,000),
compared with its competitor, American Airlines that has issued the most rewards (3,1 M). JetBlue is
one of the newest airlines and has one of the newest loalty programs, so they have a lot of room for
growth, a lot of potential, especially considering how well they have done in other areas.
Dog Gift cards are nothing new in airlines industry. All airlines companies provide gift cards and all
these gift cards rank similarly.
XII.
BALANCED SCORECARD
The airline industry is more competitive than ever. The global marketplace is in a state of
constant change and the needs of our customers continue to evolve. We believe our strong brand and
differentiated product will help us continue to successfully compete in this dynamic environment.
10
Strategy Map
Objective
KPI
Target
Initiatives
Financial
Stronger
Return
perspective
balance sheet
(A321)
Offering new product (Mint and
Fly-Fi)
Reduced total debt ($200 M),
lower interest expenses
Customer
Increase
Enhance
perspective
customer
flight
products
satisfaction
entertainment
LiveTV
Internal
Enhance
Number
business
efficiency
aircraft
process
performance
and
services
with
with Sharklets
aircraft
Employee
Opening
perspective
Learning
& Efficiency
growth
maintenance
understanding
new lodging
perspective
of the current
of new
facility
system
equipment
training
purposes
for
employees of LiveTV
11
REFERENCES
Borrayo, Juda. 2012. Bringing Humanity Back to Air Travel JetBlue. Retrieved from
http://www.slideshare.net/JudaAdamBorrayo/bringing-humanity-back-to-air-travel-jet-blue on
23 February 2015 .
InsideFlyer. 2009. Is the Perception That It's Constantly Getting More Difficult to Claim an Award
Flight True?. Retrieved from http://www.insideflyer.com/articles/article.php?key=5277 on 23
February 2015 .
Neo. 2012. JetBlue Airways. Retrieved from
http://mbacase.blogspot.com/2012/08/jetblue-