Current Strategy of JetBlue Airline
Current Strategy of JetBlue Airline
History of JetBlue Airlines
JetBlue Airlines is an esteemed airline that has the
mission of “bringing back humanity back to air travel” (Sheth
12). This airline
achieves this through delivering of value, service, style, as well as comfort
towards their clients, in addition to their employees. JetBlue Airlines was incorporated
in the year 1998 in Delaware and started service in the year 2000, the primary
base of operations being at JFK in New York. According to Hüschelrath
& Kathrin (65), in the
year 2002, it operated 108 flights on a daily basis, 52 of them being between
JFK as well as FL, and 26 of them being between JFK and New York.
The mission of Jet Blue Airlines is to “bring back
humanity back to air travel” by being a leading low fare as well as cost
passenger airline that offers a high quality customer service towards
underserved markets in addition to customer who are searching for the best
value during their flight. Jet Blue Airlines have the modern most advanced airplanes
that are reliable, efficient in terms of fuel, uses paperless cockpit
technology, have live in-flight satellite TV as well as security cameras. The
philosophy of Jet Blue Airlines is to give their clients the best price value in
the market for their ticket, as well as providing things competitors do not
provide (Peterson 10). At JetBlue Airlines, they feel that hiring
well-trained employees who are as well highly motivated and educated will give
a better experience towards their customers. Jet Blue Airlines also feel that
their high-value and quality service philosophy will propel the company to
become the leader in the industry.
The vision statement of JetBlue is to offer the best
and cheap flight experience of whichever air carrier whereas offering superior
Objectives of the Firm
Offering support to the objectives of the
organization and being true to its values- JetBlue Airlines aim to place its compensation programs in line with
its business strategies which are focused on the long-term as well as creation
of value for their stockholders. JetBlue Airlines motivates its crew members in
overcoming different challenges as well as to deliver on their commitments,
while still maintaining their values regarding Safety, Integrity, Caring, as
well as Passion.
Attract as well as retain the top talents- JetBlue Airlines’ objective is to set target
compensation that will enable the organization to become competitive within the
airline industry in terms of its location, network, unique market position,
structure as well as size in relation to other airlines. In order to attain
this, JetBlue aims at acquiring the top talent in the airline industry as well
as retain them so that they can spearhead the organization towards achieving
Pay for performance- JetBlue Airline holds its executive personnel
accountable for the performance that they portray in light of the organizations’
goals, industry performance as well as individual performance. JetBlue Airline
believes that the section of executive compensation that is designed to be
delivered in terms of variable pay ought to rely on the position of the
executive as well as the capacity of the respective position in terms of
influencing the overall corporate performance.
Current Strategy of JetBlue
1. Goals and Performance Targets-
The strategy of JetBlue
Airlines has been to position itself as a leading low fare and low cost
passenger airline through provision of high quality customer service as well as
differentiated products towards their clients.
2. Market Focus-
JetBlue Airlines as well
focuses on serving markets that are undeserved along with large metropolitan
regions where the average fares are high, with a differentiated geographical
flight programme that incorporates both short as well as long haul routes.
Focus- product/service is a significant marketing mix that JetBlue Airline
focuses on so as to be competitive within the industry. The strategy that
JetBlue Airline has adopted in relation to its product is the concept of “doing
more with less.” The product offered by the carrier is a low-cost one, which
changes the landscape of the domestic aviation. JetBlue Airlines offers
high-quality services as well as products to its clients. While on-board,
clients enjoy a unique flying experience that the company refers to as the
“JetBlue Experience” which includes welcoming, customer service-oriented crewmembers,
leather seats, free DirectTV® channels, as well as numerous free satellite
radio. The airline as well offers wide-ranging free snacks and beverages (Peterson
30). According to the company, the “JetBlue Experience” of their clients is a
significant aspect in retaining them.
4. Value propositions-
the value chain of JetBlue Airline is derived from its firm infrastructure,
technology development, operations, as well as human resource management. JetBlue Airline has adopted a simple
value proposition, that is, lower fares that are accompanied by high-standard
services (Peterson 13). This has been imperative in creating a distinctively
powerful brand for the business during the past decade, hence contributing to
the success story of the airline. JetBlue Airways has as well created a new
airline category that is based on value, service as well as style. Well-known
for its high-quality service along with free TV and low fares, JetBlue Airline
offers its customers a lot of Legroom as well as spacious Legroom seats. The
understanding of the airline industry by JetBlue has added a great value in the
company as well as its stakeholders.
the competitive capability that JetBlue Airline has is derived from its value
chains. With the different strategies that JetBlue Airlines has undertaken, it
has very high potential of attracting new clients as well as retain the present
ones. As a result, this is capable of placing JetBlue as a leader in this
airline industry, which will then benefits its investors.
Airline has adopted several strategies so as to compete with their rivals in
the airline industry, and improve on its standings (Sheth 101). The generic
competitive strategies adopted by the company include the following:
Low-cost provision of
services/products- JetBlue offers its services or product
to their customers on relatively low cost in comparison to the price that their
competitors charge. The Price charged to clients is a significant aspect in the
marketing mix of the JetBlue. Customers are interested as well as attracted to
quality service offered at a reasonable prices. In this respect, JetBlue
Airline excels in beating their competitors in the provision of cheapest fares
across the nation. This is significant in attracting customers to come and
enjoy the company’s “JetBlue Experience.”
Differentiation of its products- JetBlue
Airlines offer products that are highly differentiated to their customers.
Apart from travelling with them, clients are provided with snacks, beverages,
free TV as well as radio channels. These differentiated products are
significant in making the customers enjoy the services and become regulars.
Focus on Costs- in
order to offer low-cost services/products, JetBlue focusses on reducing its
costs by investing in modern technology that enhances efficiency as well as
cutting down the level of wastage. Embracing technology is an imperative step
in reducing costs. With JetBlue’s low-cost strategy, the company has discovered
that it can be able to increase its market share as well as dazzle clients with
top-quality services at relatively low prices. This combination of cost
management has produced a substantial competitive advantage to the airline (Sheth
JetBlue’s Measures in Strengthening
its Competitive Position
according to Neeleman, Tom & Dan Rather, “JetBlue Airplane is $9.10 in terms of its low cost
advantage” (112). With this figure, JetBlue’s low-cost structure makes it
possible for the airline to charge low fares to its customers and yet remain
profitable business. This has been significant in enhancing the expansion of
the airline during the past decade, making it to be ranked as the 5th
best airline in the United States.
its presence on high-value geographies- In addition, JetBlue Airline focusses on high-value
geographies such as Boston, New York, as well as the Caribbean. This will be
beneficial in the long-run in terms of increasing the competitiveness of the
airline with the other leaders in this industry. According to Wynbrandt, JetBlue’s strong presence in Boston has helped the
airline to increase its revenues in the year 2013.
JetBlue’s Organizational Awareness
strategies that JetBlue Airline has undertaken is clear in terms of outlaying
the company’s growth blueprint. The clarity of the strategies is evident on the
measures that JetBlue has adopted in making sure that the future of the airline
is secure. This is evident of the infrastructure as well as the technology that
the company has invested in the past.
strategies are well communicated to the executive personnel within the company.
In addition, these strategies have been communicated to the present as well as
prospective customers to the airline, through the enhancement of JetBlue’s
brand image during the past.
to Maina, both the short-term as well as the long-term strategies of JetBlue
Airline have been communicated from the top to the bottom of the organization.
This is imperative in making sure that all individuals in the organizations are
working towards a common goal/purpose.
JetBlue’s Strategy Integration and
Airline has integrated its strategies in a manner that makes the company to fir
within the industry so as to make sure that it is able to compete with the
other players. These strategies fit perfectly well with the external factors
such as customers. JetBlue has given their clients one of the high-quality
services/products that are offered in the airline industry, helping the company
to fit itself in this component of the external environment.
the current strategy by JetBlue as well fits with the internal aspects of the
company. For instance, the strategy lives up to the mission of the company,
that is, to “bring back
humanity back to air travel.” This is because the company has reduced fares
that make it affordable for people to travel by air.
The current strategies as well fit with the
capabilities of JetBlue. Over the last decade, the company has created a lot of
infrastructure so as to fit the long-term goals of the company. The company has
as well purchased more airplanes with a high passenger capacity so as to be
ready for its growth within this industry. The firm does not need to make
whatever changes in its strategies since it has strategically placed itself to
face the future.
Hüschelrath, Kai, and Kathrin Müller. The Value of Bluer Skies: How Much Do Consumers Gain
from Entry by Jetblue Airways in Long-Haul U.s. Airline Markets?Mannheim: ZEW,
Zentrum für Europ. Wirtschaftsforschung, 2012. Print.
Neeleman, David, Tom Anderson, and Dan Rather. Jetblue. New York: CBS Worldwide, 2002.
Peterson, Barbara S. Bluestreak: Inside Jetblue, the Upstart That Rocked an Industry. New York:
Portfolio, 2004. Print.
Sheth, Jagdish N. Deregulation and Competition: Lessons from the Airline Industry. New Delhi:
Response Books, 2007. Internet resource
Wynbrandt, James. Flying High: How Jetblue Founder and Ceo David Neeleman Beats the
Competition --- Even in the World's Most Turbulent Industry. Hoboken, N.J: Wiley,
2014. Internet resource.