Jetblue Airways

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JETBLUE AIRWAYS 2
JetBlue Airways What is JetBlue’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion?
The strategy for JetBlue’s success in the marketplace is described in the company’s 10-K/A filling. Their goal is to ³establish JetBlue as a leading low-fare, low-cost passenger airline by offering customer’s high-quality customer service and a differentiated product.´ (JetBlue,2005) By doing this, they are trying to ³stimulate market demand while maintaining a continuous focus on cost-containment and operation efficiencies.´ (JetBlue, 2005) Based on the filing, JetBlue relies on product leadership customer value proposition. The four key elements to their strategy are:
Stimulate demand with low fares
Emphasize low operation costs
Offer point to point flights to underserved and/or overpriced large markets
Differentiate our product and service (JetBlue, 2005)
Due to the strategies, JetBlue has been able to grow largely as a company and become one of the leading airlines which focus on customer satisfaction at a low operating cost. JETBLUE AIRWAYS 3
What business risks does JetBlue face that may threaten the company’s ability to satisfy stockholder expectations? What are some examples of control activities that the company could use to reduce these risks? (Hint: Focus on pages 17-23 of the 10-K/A.)
As in any business, there are risks involved in which could threaten the company’s ability to satisfy stockholders expectations. For JetBlue, they operate in an extremely competitive industry and must be able to remain a leader in their industry to ensure they are continuing to satisfy stockholder expectations. Some of the risks are items such as; maintenance costs will increase as the fleet ages, not…...

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