JetBlue was established by David Neeleman in the later years of the 90’s. It is an airline that offers various differentiated services at a low cost. Therefore, it follows the strategy of being the best cost provider aimed at giving its customers a high value for their money.
This report will seek to distinctly highlight how the company can be able to achieve its cost spot through the capacity to slot in nice-looking characteristics at abridged prices. Through the management strategic approaches undertaken, JetBlue has the capabilities and resources to expand its growth and profitability as will be evidenced by this report.
Analysis
JetBlue Airways serves 57 cities with approximately 650 daily flights throughout North and Central America plus 10 international flights. A low-cost airline requires high efficiency in its operations and it is very crucial to come up with very strategic measures so as to remain competitive.
The critical aspect lies in the fact that, as much as the organisation is aimed at maximising profits, it is also bound to meet its strategy of offering low-cost fares and also offer high quality services.
JetBlue has a mission of being a leading low-fare, low-cost passenger airline aimed at offering high quality customer service to underserved markets and customers looking for the best value in their flight. JetBlue owns the newest and advanced planes that are reliable, safe, fuel efficient, utilising advanced technologies and unique in multi-media entertainments.
Prior to 2007 during Neeleman’s tenure, JetBlue was prosperous and consistent in strategic moves producing the best in the airline industry. As a response to the 2007 ice storm, Neeleman instituted the Passenger Bill of rights while at the same time setting systems in place that could hold more reservations agents in future crisis times. The main strategic expectation of the move was in the intent of becoming America’s favourite airline.
Company Strategies of Management Growth at JetBlue
Strategic management is an aspect within any organisation that is very crucial for development and growth so as to realise considerable growth. According to Hunger and Wheelen (2), strategic management can be termed as set of managerial decisions and undertakings aimed at determining the long-run performance of the corporation in question.
The decisions and actions determining the effective long-run performance of a corporation are very critical in determining the eventual performance of the organisation. According to New York Times , an example of a problem faced by JetBlue is the winter of February 2007 which forced airlines to cancel flights or delay them leading to hundred of travellers stranded in airports across America.
JetBlue failed to cancel or delay flights until it was too late. This led to considerable losses amounting to 30 million dollars. This clearly shows the importance of prior anticipation of probable crisis and measures to undertake.
Key implementation strategies and the basic competitive-advantages are reinforcing the labour force productivity, outstanding quality examinations and innovations with prices that are fair and at the same time reasonably priced by many. Further, JetBlue strategises at providing low cost of the ticket system, as well as competent aircraft operation.
The main issues at hand for tackling are the rising fuel costs, lack of proper training to the employees, too main luxuries among the customers, baggage loss and complaints from customers. The rise of fuel cost has a direct or indirect effect on many other areas of operation. For example, rising fuel costs leads to increase in cost of tickets for clients as well as bag surcharges.
A notable plan by JetBlue to fuel growth would be adding a number of flights to existing routes, connecting new city pairs among the destinations that have already been served. Further, entering into new markets usually served by higher-cost, higher fare airlines would also mark a great move to ensuring sustainability and profitability in the airline industry.
On the same note, establishing viable partnerships and mergers would present a milestone achievement in the realisation of management growth. As a result of few aircraft in JetBlue’s fleet, an alliance would be a viable way for JetBlue to capitalise on the venture into the international market opportunities.
The culture of JetBlue whereby, the crew members have easy access to the, management crews should be well maintained by establishing a unit within the management that caters for strategic and upcoming crew issues.
With the global development and probable increase of commitments by the higher management teams, it would be very difficult for them to attend to every employee’s issues even via mails. Thus, to preserve the culture, a crew welfare department looking into issues from the crew members is imperative.
Credibility of the Strategic Measures
“It is valuable to customers having their flights departure as planned.”
(Hitt, Ireland and Hoskisson, 215).
JetBlue works towards providing superior services that meet all the needs of their customers in the air travel experience. Thus, to provide confidence among the customers, JetBlue ought to focus at ensuring that service delivery is of high quality.
The main issue of JetBlue specified in the aviation industry is competition. The aspect of cost leadership and differentiation are key strategies present for JetBlue to remain afloat amid the prevailing hardships.
Talking of establishing new flight destinations, JetBlue would determine the cities to include in the flight pattern by analysing the executive study information availed at the Department of Transportation. This will give an account of number of passengers, capacity and average fares over time charged in the regions.
The credibility of the strategy behind getting into alliances finds its basis in the fact that, with smaller aircrafts, it would be technically difficult for them to fly overseas. Therefore, by getting into alliances, its operations would be heightened and the strategic move of flying overseas realised.
Although fuel prices pose a point of concern, they affect the industry in the same way; thereby airlines have opportunities to mitigate the risks. The introduction of new flight routes would see JetBlue raise fares in these routes thereby supplementing on profit maximisation. Further, reduction of capacity and costs can be through selling of used fleets like the Airbus A320.
The strategic aspect of realising increased productivity can be through attraction of customers in sufficient volumes by featuring free internet sessions, comfortable seats with more legroom and unlimited catering services.
On the same note, the introduction of private massage parlours, manicure and hairstyle services for travellers, as well as children play areas like bouncing castles at the terminals would see high influx of customers attracted by the extra services they get as they await their scheduled flights.
Finally, for any organisation, being successful not only means being profitable and staying in business, but maintaining an organisational culture that is value based and of high commitment. The success of JetBlue ought to come from within, therefore, without a value based culture, it will suffer considerably.
This calls for strategic measures aimed at expanding the scope and coverage of service delivery while at them same time, maintaining every aspect within the company. This culminates into the fact that, the new strategic moves ought to maintain and improve the existing culture of JetBlue.