Jetblue Airlines Case Study

Edwin Scott

Business 510

Case Study 3

Professor Hood

12/15/2013

Abstract

The purpose of this paper is to discuss the business strategies of JetBlue Airlines. The company's dominant strengths are their excellent work place culture, customer service, values, and being able to develop strategies to continue to provide a low-fare ticket to their customers while also making a positive profit in revenue.

History of JetBlue Airlines

JetBlue Airlines was founded back in 1998 by David Neelman to be a low-cost airfare airline. Their headquarters is in New York City and their main hub is out of John F. Kennedy International airport (JFK).

The main objective of being a low-cost airline was to offer exceptional comfort and services to their customers. One of the main philosophies that Mr. Neelman put in place was that JetBlue never cancels a flight but just delay them. JetBlue was one of the first air carriers to offer customers the ability to purchase an E-Ticket. JetBlue expanded their shareholder and customer value by developing strategic growth and implementing an accelerated extension plan.

As of 2012, JetBlue currently serves over 70 destinations in 24 states including Puerto Rico and 14 countries internationally. Their fleet of planes consists of 115 Airbus 320 and approximately 4 Embrear 190 aircraft for regional services. all of JetBlue's aircraft are equipped with comfortable leather seats, XM Radio, and Direct TV for their passengers.

Business Strategies

When JetBlue's founder Mr. Neelman started the company back 1998, he had a vision of bringing greatness and comparison to the airline industry (JetBlue Website, 2012). In order for him to be successful in attaining this goal, the company embraced a very impressive strategy of development, operational greatness and outstanding customer relationships at the executive level along with the generic strategies of Differentiation and low cost leadership at the service level. Some of the major points of interest in this strategy includes low air fares, low operation cost, offering excellent quality products and services whenever a customer uses JetBlue, and to continue to invest in new and improved technology to keep JetBlue ahead of its competition and to purchase new and better eco-friendly aircraft.

At the moment JetBlue is operation under a Differentiation type business strategy in order to sustain a competitive advantage over their competition. According to Porter, "differentiated goods and services centers their attention on satisfying the wants, desires