During Neelman providing the necessary strong leadership, along with the talented management team formulated clear operative goals and directions based on his vision. The low-cost strategy was adopted via productive workforce, automated processes and heavy reliance on technology. The terrorist attack of September 11, 2001 crippled the airline industry, however, JetBlue continued to expand its network, and it went public in 2002. If a customer still wished to book via phone then JetBlue has part time reservation agents who worked from home which in turn lowered their reservation function costs. Neelman wanted to utilize technology to bring better customer experience at a low cost.
Additionally, they decided not to serve any meals on their planes as well as their pilots had to always be available, if needed, to help do the cleanup of the aircraft in order to minimize the time the aircraft was on the ground. Adjusting the current outstanding shares for the shares that would be issued after going public, the total outstanding shares of the company are 46. Recipient of Highest in Customer Satisfaction Among Low Cost Carriers in North America Award for 8 consecutive years, thus has a very strong brand image in America 2. Mao November 15, 2013 Dustin Barnier 103168582 David Gudalj 103450148 Christina Longo 103141910 Audrey Xue Weng 103699389 longof uwindsor. The negative aspect is that this gives the company another expense in interest deductive from revenues. In a way JetBlue is operating as a substitute due to the fact that they offer 65% lower fares than legacy carriers. Social: The airline industry, like every other industry, has been affected by the introduction of the internet and its users.
This shall attract brand recognition from the state of the art design along with the exclusive access in a very busy international airport. By 2001 the airline was operating 20 new A320s with an ambitious 131 on order JetBlue Airways Corporation, n. But Neelman, perceptive of the industry needs, went about raising enough capital before starting JetBlue, as airlines industry is a capital intensive industry. During the year, the airline added nine more destinations in California, Florida, New York, Utah, and Vermont. .
Hardcopy, paperback, softbound, magazine: Physical copy shipped from our warehouse to your requested shipping location. It was stated by Morgan Stanley that the deal was hyped by the investors and he also felt that the conclusion that demand exceeded supply was exaggerated. The industry that JetBlue operates in is located in the U. From the case it became clear that the company had problems with facing mass cancellation; a weak reservation system and also no baggage handling systems. Neeleman managed to achieve this partially by hiring… 1730 Words 7 Pages JetBlue Airways: Starting from Scratch Case Study Analysis This case illustrates how an entrepreneurial venture can use human resource management — and specifically a values-centered approach to management — as a source of competitive advantage.
Case describes an innovative strategy and corresponding JetBlue strong financial results for its first two years. The company was also interested in 1125 Words 5 Pages Executive Summary JetBlue Airways, the latest entrant in the airlines industry has gone through the initial stages entrepreneurial and collectivity of the organizational life cycle rapidly under the successful leadership of David Neelman. They have new airplanes that keep the operational costs low with inflight entertainment systems, their customers get a drink and a snack and their employers are involved and motivated. The above external analysis shows us that this is a highly competitive industry full of a variety of players. There is no doubt that the control structure would have addressed some problems and created some new or magnified existing ones but that is why it is important to come up the pros and cons of decisions before they are even considered for implementation. In order to stay successful companies must keep costs low and have good customer service.
As seen in the financial statements, liabilities increase every year and so does operating revenues, maybe from a direct correlation. Edit the Brand or Add a New One : Share this Page on:. The low fare airline was designed for customers who needed to travel at affordable prices, and which would essentially create a new strand of business. Pros:Cons: — Stops from growing to death — Will make supplier upset — Allows to pay off existing debt — No further benefit of economies of scale — Allows for employees to adjust — Less maintenance costs Alternative 2: Scrap the A320. One of the remedies to avoid high bargaining power of customers would be to try to differentiate from competitors by building a unique and favorable image on the market.
Also as it proceeds to grow further to reach the elaboration stage, JetBlue needs to continue… 1063 Words 5 Pages Brief Summary of the JetBlue Case JetBlue is an American airline company whose headquarter is located in the New York City. V set on each seat and all this at a low fare as compares to other players in the industry 5. The overall goal of the balance scorecard is to analyze the gathered data and compare it to the desired performance and strategic goals. However, we know that the fleet is aging and the company is making investments to replace the old fleet and expand the fleet. Executive leadership has determined that JetBlue must increase its existing route network by adding service to mid-sized markets.
One of the remedies to avoid high bargaining power of customers would be to try to differentiate from competitors by building a unique and favorable image on the market. The strategy is established by executive leadership that the growth of scale in services will happen. Environmental: Weather is the biggest threat to any travel industry, airliners in particular. High customer satisfaction due to various facilities such as satellite radio, T. Introduction The airline industry is one of a highly complex and unpredictable nature.