...Originally started as a low-cost carrier, JetBlue still continues to compete in its existing market of point-to-point travel. With $130 million startup costs, industry’s best talents, and a brilliant CEO, JetBlue was able to have the first flight on February 11, 2000. In an attempt to cut costs even further, David Neeleman, CEO, supplied JetBlue with new aircraft which was purchased rather than rented. JetBlue tried to build its reputation by offering the best amenities. Some of the amenities offered leather seats and seat-back TVs. According to the 2007 JetBlue Annual Report, the firm continues to find innovative ways to enhance their services. For example, in 2007 they introduced complimentary in-flight e-mail and text messaging services. Also JetBlue offers live television, satellite radio, and other amenities since their first year of service. JetBlue’s core values include: SAFETY – of crewmembers and customers CARING – for crewmembers and customers INTEGRITY – demonstrate honesty, trust, and mutual respect FUN – sense of humor and ability to laugh at self PASSION – crave and deliver superior performance JetBlue exists to provide superior service in every aspect of our customer’s air travel experience. According to our research, we have specified that the main issue for JetBlue in the aviation industry is competition. Since every firm in the industry is facing exactly the same forces, the main concern is: Is JetBlue going to survive? From detailed...
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...Question I 1. Types of information system used [4] In this study case, JetBlue uses the Transaction Processing system, which is a computerized system that performs and records the daily routine transactions necessary to conduct the business. 2. Business function of information system [8] JetBlue has the ability to provide a luxurious flying experience with leather seats, each equipped with personal TV screens, while at a budget price. Some airlines have to invest heavily in the quality of service that they offer, both on the ground and in the air. Ticket-less travel, new interactive entertainment systems, and more comfortable seating are just some of the product enhancements being introduced to attract and retain customers. JetBlue is now ahead of the game due to the initiative that it took and by using the information systems to automate key processes, such as ticket sales, and baggage handling. By using the Transaction Processing system, JetBlue was able to create “paperless processes”. Question II 1. Description of JetBlue’s business model [4] JetBlue airline is lauded for its lean operating structure. The company lived up to “paperless processing” by directing its customers to do most of their transaction online, and only dealing with employees when there is an issue. They offer low fares and point-to-point rather than a network service, and are focused on second-tier airports rather than going head to head against established hub. 2. Uses of information systems...
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...JetBlue Airways JetBlue Airways books Windows XP Professional for efficiency, reliability, and security. Published: December 2001 To maintain its high level of customer satisfaction and build even higher levels of operational efficiency, JetBlue Airways implemented Microsoft® Windows® XP Professional for all its users. The remote support, easily customizable interface, and user migration tools enabled the airline to implement Windows XP Professional without additional training and support a widely distributed work force with a small IT staff. In addition, JetBlue expects that the improved reliability and security features, such as support for Smart Card logon, will enable it to maintain a reliable, more secure environment for all users. Situation JetBlue Airways took flight on February 11, 2000, from New York City to Ft. Lauderdale, Florida. Nearly two years later, it serves 18 cities across the United States with a fleet of new planes equipped with roomy, all-leather seats, each of which features free LiveTV satellite television offering 24 channels of DIRECTV. The airline not only reports a profit in its second year of operation but also has received several customer-service-related awards. It earned the highest scores of any airline in the Conde Nast Traveler 2001 Business Travel Awards and was ranked #2 Best Domestic Airline for comfort and service in the 2001 Zagat Airline Survey. Those kudos come as a result of a unique low-fare, low-cost business model...
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...Mahasarakham University Mahasarakham Business School Case 20: JetBlue Airways Subject: Business Policy and Strategic Management Instructor: Dr. Olimpia C. Racela Group Members: 1. Miss. Nguon Phuongtepsonich ID: 540101919847 2. Miss. Shi Lilin ID: 54010919850 3. Miss. Ananya Duangthowset ID: 54010919845 Submitted Date: Thursday, September 18, 2014 JetBlue Airways 1. Situation Analysis JetBlue Airways was founded by David Neeleman and lawyer Tom Kelly in 1998 with $160 million of capital. Its main base is John F. Kennedy International Airport (JFK) in New York. JetBlue positioned itself as the Low-Cost Carrier (LCC) but distinguish itself by its services such as in-flight entertainment, TV on every seat and Satellite radio. SWOT Analysis: Strengths | Weaknesses | * Good customer service: * Allow passengers to choose their seat on the plane whenever possible. * Unlike other LCC, JetBlue served free snacks on board. * Cost management: * Saving more cost by serving snack rather than meal. * Good routing management: * Flew only point-to-point flights helps to avoid the complication that resulted from connecting flights and passenger transfers. * High technology: * E-ticket and paperless operation. * Human resource management: * Family-like atmosphere at the workplace which leads to positive attitude in its employees. * Employees were free to suggest ideas and comments in order to improve operations. ...
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...Strategies for Growth and Value Creation Case Analysis: JetBlue – Managing Growth Prepared by, Alexander Martinus Christian (1342980602) Dina Sandri Fani (1342981574) Muhammad Irsan (1340001263) Puntin Kulmongkon (1342980514) BINUS BUSINESS SCHOOL BINUS UNIVERSITY JAKARTA 2015 I. Case Synopsis JetBlue Airways, Inc. (JetBlue) is a low-cost carrier (LCC) that is based in New York’s John F. Kennedy International Airport. The founder, David Neeleman, developed JetBlue’s business plans in 1998, and established the company in February 1999 after raising the needed financial resource to create the airline. JetBlue started its operations in February 2000, with its first flight from JFK to Fort Lauderdale airport in Florida. The September 11, 2001 terrorist attacks caused a very devastating time for the airline industry. Even though this occurred only a year after JetBlue started as a LCC, the company was one of three airlines to produce a profit at the end of 2001. Their performance in this year alone showed many other airlines that JetBlue was a big competitor in the airline industry who couldn’t be ignored. In the following years JetBlue grew substantially as one of best-rated airlines in the industry for customer satisfaction. In May 2007, JetBlue now decides to change its command structure. David Neeleman is being replaced by David Barger, former chief operating officer (COO) and president of the company, as chief executive officer (CEO). After gaining...
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...Professor Samir Moussalli MGMT499 November 18, 2010 Analysis Conducted by PSPS Associates Outline I. Management Summary II. Introduction a. Purpose b. goals III. Background IV. Strategy Formulation a. Vision b. External Opportunities & Threats c. Internal Strengths & Weaknesses d. Long Term Objectives e. Alternative Strategies f. Strategy Selection V. Strategy Implementation a. Annual Objectives b. Policies c. Employee Motivation d. Resource Allocation VI. Strategy Evaluation a. Internal Review b. External Review c. Performance Measurement d. Corrective Action In this analysis of Jet Blue Airlines, we will take an in-depth look at the internal and external factors surrounding the operation and continued success of the airline. We will reveal the opportunities, both internally and externally. As well as expose threats that could potentially...
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...Strategic Report for JetBlue Airways Harkness Consulting Innovation through Collaboration Rosanna Smart Alisher Saydalikhodjayev Sayre Craig April 14, 2007 Table of Contents Executive Summary ………………………………………………..3 Company History ………………………………….………………..4 Competitive Analysis ………………………………………………7 Internal Rivalry …………………………………………………………. 8 Entry ………………………………………………………………………… 9 Substitutes and Complements …………………………………….. 11 Supplier Power ………………………………………………………….. 12 Buyer Power …………………………………………………............... 13 Financial Analysis ………………………………………………….14 SWOT Analysis ………………………………………………………23 Strategic Issues and Recommendations …………………..25 References ……………………………………………………………30 Harkness Consulting 2 Executive Summary From its initial flight in February 2000, JetBlue emerged into the heavily competitive airline industry as the little airline that could. While legacy carriers declared bankruptcy, JetBlue trounced its competition by offering low‐cost, customer‐focused service. Under the direction of the energetic David Neeleman, JetBlue became a major player in the airline industry. Operating domestic flights on a point‐to‐point system, JetBlue primarily manages East‐West and Northeast‐Southeast routes. While this route structure initially proved profitable for the company, rising costs and heated price competition are currently threatening JetBlue’s market share. The com...
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...strategic analysis of JetBlue from it’s the establishment date to year 2003. In order to the analysis, a precise strategy is decided upon for JetBlue Company. 2. HISTORY David Neeleman was born in Brazil, Sao Paulo in 16 October 1959. He attended the University of Utah for three years then he dropped out university and served a mission for The Church of Jesus Christ of Latter-day Saints in Rio de Janeiro, Brazil for two years. He made his beginning in establishing own business by renting out condominiums in Hawaii. Then he established his own travel agency and began chartering flights from Salt Lake City to the islands. He was co-founder with June Morris of charter airline Morris Air, a low-fare airline. From 1984 to 1988, he was an Executive Vice President of Morris Air. From 1988 to 1994, he was the President of Morris Air Corporation. In 1993, Morris Air was then acquired by Southwest Airlines for $129 million. For 5 years, he worked on the Executive Planning Committee at Southwest Airlines. By 1994, he left Southwest Airlines after signing a five year noncompeting agreement. With his experience of aviation, he established a company named Open Skies which a touch screen airline reservation and check-in systems company that acquired by Hewlett Packard in 1999. At the same time, acted as a consultant to another start-up airline, WestJet. The BlueJet was founded by entrepreneur David Neeleman in August 1998 in Delaware under the name of “Newair”. JetBlue is David Neeleman’s...
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...CASE STUDY # 1 JETBLUE AIRWAYS PROF. AHSAN DURRANI Submitted by: IMRAN UL HAQUE (4282) Q.NO.4 WHAT IS YOUR ASSESSMENT OF JETBLUE`S FINANCIAL PERFORMACE DURING FISCAL YEARS 2003-2007? ANALYZE THE FOLLOWING RATIO`S. | 2007 | 2006 | 2005 | 2004 | 2003 | Gross Profit Margin | | | | | | Operating Profit Margin | 0.0595 | 0.0537 | 0.0282 | 0.0877 | 0.1673 | Net Profit Margin | 0.0063 | (0.00042) | (0.01176) | 0.0364 | 0.103 | Return on Total Assets | 0.0398 | 0.032 | 0.0394 | 0.0949 | 0.1984 | Return on Stockholder Equity | 0.017 | (0.0011) | (0.022) | 0.061 | 0.154 | Earnings Per Share | 0.10 | - | (0.13) | 0.30 | 0.71 | Current Ratio | 1:0.89 | 1:1.085 | 1:0.94 | 1:0.85 | 1:1.75 | Quick Ratio | 1:0.74 | 1:0.909 | 1:0.855 | 1:0.998 | 1:1.733 | Working Capital | (146) | 73 | (41) | (74) | 276121 | Debt to Asset Ratio | 0.544 | 0.586 | 0.598 | 0.5524 | 0.508 | Long-term Debt to Capital Ratio | 1:0.46 | 1:0.542 | 1:0.54 | 1:0.5 | 0.463 | Debt to Equity Ratio | 2.942 | 2.983 | 2.55 | 2.0491 | 1.655 | Times Interest Earned | 1.23 | 1.062 | 0.74 | 2.67 | 8.25 | Common stock A $100 investment in JetBlue common stock on December 31, 2002, was worth only $49 five years later. In contrast, a $100 investment in the S&P 500 index was worth $182 at the end of the same five-year period. Industry observers quipped that it was better to place money under a mattress than invest in an airline stock. According to the expert, “Airlines are...
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...Assessment #1: Crafting and Executing Strategy: Jet Blue Airlines Name: David T. Browne Instructor: Professor Joy Thomas Bus 599: Strategic Management – Crafting & Executing Strategy Date: October 15th, 2011 Abstract The purpose of this paper is to evaluate Jet Blue Airways (JetBlue) company’s crafting and executing of strategy in an industry that has been undergoing challenging changes. These trends are unique to the industry and affect how organizations strategize to remain competitive. To do this analysis, this paper takes a deeper look into JetBlue’s strategic intent which is born of its business model. Next, the paper examines JetBlue’s financial objectives and the methodology by which they have been able to achieve those objectives. Then the paper looks at the company’s operations through the elements of its human resources, organizational culture, handling of costs (which is an industry wide problem) to find out if these elements create a competitive advantage. Finally, 2008 was an important year in the strategic direction of the company therefore the paper looks at how the strategies implemented have performed and if they will allow the company to survive thereafter. Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy. The airline industry has been at the peak of a cost and profit battle for more than a few years now. High fuel and other costs have made some airline giants either file...
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...What are the challenges that Shikhar Ghosh faced when he joined Appex? 1) Lack of structure: because Appex Corporation lacked structure, it resulted in a working environment without formal procedures. Even though the people had expertise, everyone just did anything creating chaos. There were no job descriptions so if the employees were interested in something, they did it. Also, there was no development of an underlying structure so anything a week away pretty much had no priority. 2) Lack of financial planning: Appex was not monitoring its expenses and this resulted in the Corporation spending cash too haphazardly. For instance, Appex had initially planned to increase its staff from 36 to 55 by the end of 1989. However, they ended up having 103 people by the end of 1989. 3) Lack of control: People arrived when they wanted and would just react to whatever crisis the company happened to face that day creating a situation where the atmosphere was changing from entrepreneurial to chaotic plus the fact that nobody had the time to had time to plan or schedule meetings. Customer service people who were supposed to start work at 8.00am would not arrive until 10.00am and then work till 2.00am. This lack of control even created an atmosphere where the staff of Appex could go off and play basketball during office hour. 4) Lack of productivity: Appex initially had employees who were focused, committed, hardworking and worked in close interaction with each other. As a...
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...began cutting prices to try to maintain their passenger loads in the face of declining demand. However, the tactic didn't work. When one airline serving a particular route cut its prices, its competitors, desperate to cover their fixed costs, quickly followed. The result was a downward price spiral. In the fourth quarter of 2001, prices fell by 15 percent as airlines tried to induce people to fly. Despite this effort, passenger traffic fell by 19 percent, and revenue at major airlines fell by over 30 percent. Even though demand and profits plummeted at the big six airlines, some carriers continued to make profits during 2001-2003, most notably the budget airline Southwest. In addition, other newer budget airlines, including AirTran and JetBlue (which was started in 2000), gained market share during this period. Indeed, between 2000 and 2003 the budget airlines in the United States...
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...VMOST Vision Mission Southwest Airlines' mission statement reads: "The mission of Southwest Airlines is dedicated to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit." All these traits are what have made Southwest # 1 in fewest customer complaints for several years running. Southwest continues to thrive on its reputation from this # 1 ranking as well as reap monetary rewards that come with this distinction. Southwest’s commitment to their employees reads: “We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer” Objectives Strategy The strategy that Southwest Airlines should use in order to continue its success is also based on the “Short-Haul” strategy. The difference is that the strategy must be inter-converted. Southwest can try its best to duplicate its “Short-Haul” strategy globally. For instance, it can do exactly the same business with the same strategy once again. But this time, Southwest has to do it in every part of the world. For instance, Southwest can expand its business in France, Germany, Australia, Russia, China, Japan, Poland, Greece,...
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...in question is Southwest Airlines. What once was a small commuter air service, has now grown to be one of the largest and most successful major airline companies in the United States. So how did Southwest Airlines become so successful? It all began with the founders Rollin King, an entrepreneur, and Herb Kelleher, an attorney, who demonstrated strategic leadership from the beginning. The strategic leadership began when the these two gentlemen saw an opportunity that would be beneficial due to the inconvenience and expense of ground travel by either bus, train, or automobile between three major cities, which were Houston, Dallas, and San Antonio. Due to this, the establishment of Southwest Airlines came into existence by providing point-to-point short haul flights to less popular and less congested airports. Shortly after its establishment, like any other new businesses, Southwest faced many barriers in the beginning phases, which pertained to safety issues, inspections, and flight operations, which Southwest was able to overcome due to Herb Kelleher’s legal experience. After overcoming the barriers, the strategic leadership continued with the incessant building of the organization. Southwest Airlines’ organization is like an upside-down pyramid where upper management is on the bottom and the employees, who are the experts, are at the top. This was the leadership style of Herb Kelleher, who always believed that regardless of your title, the people who kept the business...
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...service, and how it varies with price levels The market structure Gogo is operating in Its dynamic pricing How the demand for in-flight Wi-Fi has changed over time, technological changes over the past 15-20 years that has affected demand Technological factors that affect supply, how congestion affects pricing and our recommendation Price Elasticity of Demand for Gogo’s Service To better analyze the price elasticity of demand for Gogo’s service, we will discuss those factors that affect the price elasticity of demand. The availability of a substitute: though there is no substitute for the use of Wi-Fi available to a traveller who is onboard a flight installed with Gogo, the traveller has a range of airlines like Southwest and JetBlue to choose...
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