...directions in the next year, however with the Airline Index at $40, Jet Blue showing $5.54, and Southwest at $11.63 one is tempted to ask if there is any direction they can take but up, or out. One can anticipate airlines seeking cost cutting measures, added with increasing revenue streams in order to revitalize the value of the companies, and through such the value of investments. Analysts indicate a trend towards an increase in airline travel demand over the next year. As one of the leading analysts Dirks (2011), points out that despite increase in Video Telecommuting for business resulting in reduction in business travel, many families are finding the cost of fuel is causing them to rethink driving and relooking at air travel. Statistics support this and reflect that as of this past November among the top six airlines, two reported their best traffic levels in 18 months. Many airlines reflected increases in miles flown per passenger, and passenger numbers have returned to the high passenger counts of 2007. These factors are supplemented by the Official Airline Guide (2011) which tracks air industry trends. The OAG reports a record number of seat bookings in April 2011. Many airlines are focusing on more appropriate alignment of routes in order to maximize bookings. Another trend is towards airline and supplier consolidations; an example of this cones from the case study discussion of Jet Blue and on board video provider LiveTV. A number of airlines have expanded...
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...Strategic Planning: Jet Blue Airways Gregory James Professor John Mitchell BUS 599 Strategic Management April 24, 2011 Abstract This report has been produced to determine if the strategic planning in which new of Jet Blue Airways CEO David Barger has created, will help to ensure the company long term success. Addressed in this report will be the following topics: (1) What are the trends in the U.S. airline industry? How might these trends impact a company’s strategy? , (2) What is Jet Blue’s strategic intent? , (3) What are Jet Blue’s financial objectives? Has the company has been successful in achieving their objective? , (4) What are Jet Blue’s strategic elements of cost, organizational culture, and human resource practices? Does each of these elements provide the organization with a competitive advantage? , and (5) What are Jet Blue’s strategies for 2008 and beyond? Will Jet Blue be successful implementing these strategies or not? Strategic Planning: Jet Blue Airways What are the trends in the U.S. airline industry? How might these trends impact a company’s strategy? With the constant changes in the country’s economy, airlines are having more difficulties reaching a competitive advantage. The constant raise in fuel and oil cost to fuel airplanes has caused airlines to come up with a plan to maintain these cost. In addition, the airlines also focus on increasing profit return to shareholders and company executives. To achieve this goals airlines have started...
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...Running head: “JET BLUE AIRLINES” JET BLUE Shelia Droze Strayer University BUS 599 Discuss the trends in U.S. airline industry and how these trends might impact a company’s strategy. The trends in the U.S. airline industry consist of changing customer demands, new and improved technology, cost pressures, expanding domestic and international services, reduction of operating cost and efforts to increase revenue within the airline industry. The most recent trend is to lease aircraft and the avoidance of long-term contracts in order to allow their finances to remain somewhat modest. In order for the various companies to remain productive it is imperative that they continue to develop new products and services, determine the best methods to attract consumers, and figure out ways to remain competitive regardless of their competitors. More importantly, develop a gradual recovery in passenger traffic from 9/11 terrorist attacks. Discuss Jet Blue’s strategic intent. Jet Blue’s strategic intent was to become the “Best domestic airline”, “Best domestic airline for value”, “Best overall airline”, and “bring humanity back to air travel” (Thompson, Strickland, and Gamble, 2009) while making a profit for the company and improve capacity management, cost reduction and provide high quality service. As a low-cost airline in a very competitive market their goal was to never cancel flights and provide entertainment on board their airlines. David Neeleman’s goal was to...
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...Assignment #1 Case #3 Jet Blue Airways Daisy L Kenney Professor Kimberly Anthony BUS599 Strategic Management July 10, 2011 Case #3 Jet Blue Airways 1. Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy. The trend in US airline industry is to use price discrimination and differential pricing to increase the revenue of the airlines. For this there are computerized programs that help increase the revenues of the airlines. Further, the current trend among airlines is to reduce operating costs. The current trend in airlines industry is to lease aircraft and avoid entering into long term contracts so that the financing remains modes. Finally, the current trend of alliance among airlines especially that of code sharing or selling the tickets of another airlines. Overall, the airline industry is very competitive, turbulent and volatile. 2. Discuss Jet Blue’s strategic intent. The strategic intent of Jet Blue Airways is to improve its profitability, revenue optimization, Improved capacity management, cost reduction, and delivering high quality service. Since its IPO, Jet Blue Airways posted its first loss in 2005. There is a difficulty in the strategic intent of Jet Blue Airways. It is...
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...the nearby hotels are making contract with the airlines. The specific percentage is associated with the airlines. The main objective of them is to attract more customers to increase their revenue (Thompson, Strickland & Gamble, 2010). Therefore they are cutting their cost by decreasing the fares but on the other hand they are giving fewer facilities to the passengers like they are not providing any meal if providing it is chargeable. Again it is seen that some flights are providing only drinks and cakes to the customer. But the registrations of flights tickets are seem to be very easier and convenient for the customer. Now they can book the ticket online without bearing any charge of brokers. 2. Discuss Jet Blue’s strategic intent prior to 2008. The main objective of jet blue is to provide service to the customer at low cost. With these strategies it can be able to capture the market of airlines. It provides newer and comfortable facilities to the customer with new seat belts, staff and refreshment. Prior to 2008 it gives advertisement in the newspaper for different discount...
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...Jet Blue Airways: Analysis of a Company The airline industry serves not only as a means of transportation to millions of people on a daily basis, but also a huge customer service industry. Customers analyze every aspect of air travel from the food services offered and convenience of completing business transactions, to the airline’s safety results and ratio of on-time departures. Many customers become brand loyal, where others will do business simply based on price. It is also vital to note that, like any company, brand perception plays a large role in the success or failure of a company within the airline industry. Because of the number of individuals impacted when a flight goes awry, it only takes one incident to completely destroy an airline company’s credibility for safety, which can also lead to reduced sales and ultimately profit. Airlines must also now adapt to the world of technology as many consumers are looking for airlines that provide high tech amenities, such as paperless boarding passes and the ability to use cell phones while in flight. To keep their customer’s content, airlines must use their Research and Development teams to meet these expectations or they will lose those customers to competition. At the creation of Jet Blue, its Chief Executive Officer, David Neelman, wanted to “combine the low fares of a discount airline carrier with the comforts of a small cozy den in people’s homes” (Thompson, Strickland, Gamble, 2009). He wanted leather seats...
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...Jet Blue Airways Linda Newman Bus 599 Dr. Romuel “Roy” B. Nafarrete Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy. The U.S. airlines is started to see improvement demand for air travel in beginning 2010 after being affected by the economic downturn. Business travel, is directly affected by economic environment, to an all time low 2009 as many corporations slashed their travel budget (www.jetblueairway.com). The airline industry is facing most difficult times in history. There was a worldwide recession with terrorist attack September 11, 2001 that led to decrease in passenger traffic, reduction in revenue and rising fuel prices. Following the September 11 attack, the president signed into law the stabilization act which provided compensation to U.S. Passengers, and cargo for losses that incurred by the airline industry as a result of terrorist attack(www.jetblue.com). Passenger’s confidence in air travel was damage greatly after the 911 attack. Airlines were forced to cutback on flight and reschedule existing routes, and forced to charge for extra baggage Consumers are constantly searching for ways to save money, and the airlines industry has tried to adjust to the increasing demand and by cutting and controlling costs (Thompson, Strickland, Gamble, 2009.pg c-53). David Neeleman founded jet Blue, after working for two other airlines (Morris Air and Southwest) in which he was not satisfied with their...
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...Crafting and Executing Strategy Assignment 1 By Sarisa Sukbumrung BUS 599 Dr. Johnnie. Drake E. Drake, Jr. Strayer University Fall 2011 Abstract The objectives of this paper are to illustrate the business strategy of Jet Blue airways. The company’s strategy advantages, i.e., the quality of services, market strategies, and employees trained and challenges of a company competing on price. Latterly, focus on how the company deals with high competitive market industry, shareholder and financial management. Assignment: #1 - Crafting and Executing Strategy 1. Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy. The trends in the U.S. airline industry, most of the U.S. airlines are operate in discount airline carrier by offering the passengers low fares, operated point to point system, used two types of aircraft and served only snacks, also provided quick turnaround times at airports. The most of the U.S. airline concentrated in the domestic route, however most the domestic flight can help the company gain small amount of the profits margin. It is the high competition between the pricing of each airline to attract the customer. Many airlines save the time ranged from 20 to 30 minutes during the flight because no meal served during the flight, so the plane do not have to wait for catering services to replenish the aircraft. Although, to save time for flight attendants to clean up all the trash, that is also help...
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...Case # 3 Jet Blue Airways Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy Overall the US airline industry is a cut-throat business which is extremely competitive. The cliché ‘it’s a dog eat dog world’ applies perfectly here. Over the past few years the situation grew even worse due to the recession, increased unemployment, the weakened dollar exchange, and difficulty predicting how OPEC will behave month to month. The fluctuation in the oil market has a direct effect on ticket prices bought in bulk or reserved six to nine months in advance. Airline pay close attention to the oil Futures Market to make sure their purchases of fuel is hedged. Airline companies are divided into a few categories. Jet Blue is in the discount airline category, where lowering the fixed cost is an important factor. For a discount airline to offer cheaper price, services must be cut as well as the number of airports serviced. Only destinations with high volume are able to be serviced, thus a traveler may be forced to have multiple connections to reach their destination. Airplanes must be leased instead of bought to reduce the upfront cost. In-flight meals and unlimited beverages are curtailed or completely removed. The absence of complimentary cases of beer or soda cans adds to savings on gasoline as well as price per can which is factored into lowering the ticket price. Full service airlines such as Singapore and Lufthansa, cater to a...
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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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...fun for its clients. Aside from that, Jet Blue Airways Corporation also reaches out to the public by being active into community service. Essentially, Jet Blue is committed to enriching the lives of children and supporting the communities they serve through their core values of caring, fun and passion. In connection, one of the best community services offered by the company is giving books to children of not wealthy parents in one of the cities in the United States. The unwritten mission statement of Jet Blue Airways Corporation is reflected in its core values and principles created and set by the company. In lieu of mission statement, Jet Blue Airways Corporation is presenting a strategic set of core values. These core values include safety, caring attitude, integrity, fun and passion. The company commits to safety as the first priority in all business operations. In order to do so, the company adheres to rules and regulations implemented by regulatory agencies whenever is needed. Maintaining high standards in a consistent manner is the primary goal of the company when it comes to safety matters. Thus, the company never compromises safety of its crewmembers and customers during and after flights. The company also takes social responsibility for the benefit of the people in general and strives to be a role model in the business community. The company cares for its employees and the customers in one-way or another. In addition, Jet Blue Airways Corporation...
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...Jet Blue Airlines Strategic Management (Bus 599) October 16, 2011 In today’s society there are very few things that are limited in number. There are an immense number of companies that provide goods and services; those companies include but are not limited to wireless telephone companies, grocery stores, clothing stores, car dealerships, and airline companies. There are many different airline companies used daily for both national and international travel. JetBlue Airways is one amongst a number of airline companies. At one point JetBlue Airways was a discount airline carrier; which offered customer’s low fares, operated point-to-point systems, used two types of aircraft, served only snacks, and maintained quick turnaround times at airports. One of the airline company’s focal goals was for their customers to feel as if they were in a small cozy den in someone’s home. However, in the first six months of the year 2008 the US economy slowed and crude oil prices rose to a record of $140 per barrel. By this happening businesses had to cut back on employee travel and this rise in crude oil prices also stopped consumers from going on vacations. The rise in oil prices made air travel more expensive. There operating costs were low, especially compared to those of other major US airline companies (Thompson, Strickland & Gamble, 2010). Discuss Jet Blue’s strategic Intent Being affected by the increase in oil prices, Jet Blue decided to invest in the new airbus A320 which offered...
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...especially the Jet Blue airline. U.S airline industry trends including increased crude oil prices, new technology advancement and the impact on post 911 aviation securities. Technologies place an important role in the airline industry today. Technology helps to develop great convenience offer to the customers. Internet as a way to book flights, check in, and check flight status. After the terrorist attack of the 911-airline industry have security systems protecting for the passengers. There are some main changes in the airline industry after attack of 911 such as baggage screening and passenger screening. After 911 federal government increased the air passenger safety. Screening procedures for passengers and their baggage including requiring passengers to remove their shoes and limiting carrying fluids on to the plane. Finally crude oil prices impact a company strategies in the airline industry. Crude oil prices increased dramatically and caused airlines to struggle. When the crude oil price increase they began to increase passenger fees for heavy bags, snacks and even blankets and pillows. Discuss Jet Blue’s strategic intent Discuss Jet Blue’s financial objectives and whether or not the company has been successful in achieving this objective Discuss Jet Blue’s strategic elements of cost, organizational culture, and human resource practices and evaluate whether each elements provides the organization with a competitive advantage Discuss Jet Blue’s strategies...
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...Running head: ASSIGNMENT #1 CRAFTING AND EXECUTING STRATEGY Assignment #1 Crafting and Executing Strategy Jet Blue Airways Strayer University BUS599016VA016-1116-001 Strategic Management July 11, 2011 Abstract This paper examines the business strategy of Jet Blue Airways. The paper will also examine strategic elements that provide the organization with a competitive advantage. The company’s competitive strategy and the impact of the trends in the U.S. airline industry will also be discussed. Assignment #1 Crafting and Executing Strategy Jet Blue Airways David Neeleman worked in the travel and airline industry before starting JetBlue. He was well versed in customer service. He learned from his grandfather as a teenager never to disappoint customers; satisfied customers would return. As a young man Neeleman also learned to be frugal (C-53). David Neeleman started JetBlue Airways as a company that would combine the low fares of a discount airline with the comforts of a den. Passengers would save money, consume gourmet snacks, sit on leather seats, and watch television. Many of JetBlue’s ideas came from Neeleman’s own personal experiences. He decided to add leather seats because he was once assigned a cloth seat that was soaked with urine. Leather seats were more durable and easier to clean. Individual monitors provided entertainment. He decided to provide 24-channel live television via satellite for free (C-53). On February 11, 2000, JetBlue’s...
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...Bus 599 Assignment 1 Dr. Elile Awa CRAFTING AND EXECUTING STRATEGY Submitted by: John-Miguel Onkony Winter Quarter 2011 Strayer University Introduction This document presents an analysis of one case presented in the textbook (Thompson, A.A., Strickland, A.J., & Gamble, J.E. (2010). Crafting and executing strategy: The quest for competitive advantage: Concepts and cases: 2009 custom edition (17th ed.). New York: McGraw-Hill-Irwin.), entitled “JetBlue: A Cadre of New Managers Takes Control”. The case describes the reasons for the success of JetBlue, a three-year-old, low-cost airline, operating in the USA. Trends in the U.S. Airline Industry and their Impact on Company’s Strategy Since 2001, the US airline industry has faced an unprecedented set of challenges. Following the terrorist attacks of September 11, 2001, the airline industry reported tremendous losses and several of the largest US airlines went into bankruptcy. To recover from this situation and try to remain financially viable...
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