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Bill French Case

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Submitted By klennylouisco28
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FEU MBA 209
Case Study

Jetblue Airways: A Cadre of New Managers Takes Control

Case Background

JetBlue is a low-cost domestic airline in the United States following a rather interesting combination of ‘low-cost and differentiation’ as its strategy. From its inception in 1998, the airline grew to become the 11th largest player in the airline industry in a short span of 6 years. It had been the only other airline apart from Southwest airlines, to have been profitable during the aftermath of the September 11, 2001 attacks on World Trade Center, and at a time when the entire airline industry was experiencing losses.
In 2001, JetBlue planned to launch an IPO to fund its expansion plans. The IPO had to be postponed in light of the terrorist attacks, but JetBlue continued with its expansion plans using its share of the $15 billion bailout ($5 billion in direct compensation and another $10 billion in loan guarantees) the US government granted to the aviation industry, and a fresh infusion of funds from its original investors.
Jet Blue is facing the same problem as nearly any company in any industry; that of competition. The most important task at hand for the company of Jet Blue is to maintain the quality of their product so as to ensure that they are able to garner customers, their product being superior to that of their competition. Thus far, Jet Blue has done this quite well, establishing a name for themselves as a low-cost provider of an exemplary air-travel experience. However, in addition to their competition, Jet Blue is also must contend against themselves, their business practices and behaviors affecting the success.

Areas for Concentration

* JetBlue’s competitive advantage, and the merits and demerits of both the components. Are combination strategies better? Is JetBlue’s competitive advantage sustainable? * salient aspects of JetBlue’s

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