JetBlue Airways Case background
JetBlue Airways is an American low cost company incorporated on 1st August 1998 by David Neelaman. Since 2005 to 2010, the company has been voted as the best low cost airline in the United States; its main port is John F. Kennedy International airport (JetBlue official website, 2011). This paper looks into changes in American Airline industry, how the changes affect JetBlue and then evaluate strategies set by the company.
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Changes in America Airline industry
The United States is a world leader in international and domestic air travel; it also is the world largest economy. These attributes has made the country a good market for international airline companies as they try to tap the market, there are also domestic companies coming with strategies to tap the same market. The country is facing an influx o flow cost planes both international and domestic.
The effects of changes in the United States Airline industry on JetBlue
The United States airline industry is highly competitive; low cost planes industry has drastically increased offering alternative means of transport, this affects JetBlue airlines directly. Examples of low cost companies in United States are Southwest airlines, Virgin Atlantic and Sun Country Airline Southwest airlines, Virgin Atlantic and Sun Country Airline.
Connection of routes among different international companies has made international transport cheap; this has proved a challenge to JetBlue since it needs to compete with well-planned trading cartels.
JetBlue airline strategies
The company has embraced the benefits offered by scientific decision-making strategy; this is making decisions using information from internal and external audits. Research and development team is robust and ensures it advices the company on the right decision to make at an appropriate time. Internal audit, external audits, market surveys and research reports are analysed and form a business intelligence resource.
The company aims at having quality services differentiate-able from those of its competitors. It aims at offering a memorable experience to clients. The focus on the customer has made the company enjoy increased clients who are loyal and willing to market the company.
In 2010, the company was awarded the best customer service provider in airline industry in the United States. To enjoy a large market share, the company has diversified its services to other countries like Caribbean countries.
Financial obligation of the company
The world is facing financial crisis that started in 2007, however, in 2009, the company was able to record a positive income in all the four quarters in the financial year. The Company made an income of $58million. Its financial obligations are to creditors, shareholders, Investors, society, the government among other stakeholders.
The company have implemented a six-sigma policy to reduce costs and increase efficiency. It has also embraced a positive organizational culture that allows employees air their views and assist in inventions and innovations taking place in the company. Currently the company has over 12000 dedicated staff and the management adopts different motivational measures. Each of the elements, that is, cost effectiveness, good human resources management, and positive organisational culture individually and collectively contributes to the good of the company.
Jet Blue’s strategies for 2008 and their effectiveness
In 2008, the company adopted different strategies to remain competitive despite the world economic situation. It has embarked on quality assurance and improvement to its clients a move that retained previous customers, as new ones were sort.
To ensure that the company manages its costs effectively, it has adopted cost management strategies like Six-sigma, integrated supply chain management, just in time stock management and automation. This has resulted in reduction in the company’s costs. The company has embarked on massive research and development projects to boost its business (Thompson, Strickland & Gamble, 2010).
The strategies adopted in 2008 will assist the company cope with future market trends; the strategies will work because they are not static but easily adapts to changes in the industry.
JetBlue official website. (2011). JetBlue. Retrieved from https://www.jetblue.com/
Thompson, A., Strickland, A.J., & Gamble, J.E. (2010). Crafting and executing strategy: The quest for competitive advantage: Concepts and cases: 2009 custom edition. New York: McGraw-Hill-Irwin.