JetBlue Airways

Bus630 Managerial Accounting

Lawanda M. Bishop

Professor Gregory Goussak

10/12/2012

1. JetBlue’s strategy for success in the marketplace is to stimulate demand with lower fares, emphasize low operating costs that stimulate market demand while operating efficiencies and costs. It also strives to benefit from economies of scale from its future expansion. By offering low rates, product leadership and customer value, their demand will increase, offering travelers with a low-cost alternative. JetBlue have one of the largest load factors in the United States. By relying on customer intimacy, operational excellence, and product leadership customer value proposition, allows JetBlue to become successful in their strategies. The four key elements to JetBlue’s strategy is how they stimulate the demand with lower fares, how they emphasize low operation costs, how they offer point to point flights to consumers who are under served or live in over price large markets. Due to its strategies, JetBlue has been able to grow largely as a company and become one of the leading airlines which focuses on customer satisfaction at a low operating cost. (Zuckerman, 2008)

2. Many organizations face day to day threats that are beyond their control and these risks can threaten any company’s ability to satisfy their stockholders . JetBlue operates in an extremely competitive industry and some of the threats JetBlue may face might be the liability to satisfy stockholders expectations, the high cost of fuel and a risk of foreign exchange. Price competition affects JetBlue since it translates to high fixed costs and low profit margins. Some examples of controlled activity would be how the company could establish a plan to reduce the risks of high fuel prices and operating costs. JetBlue would need to put a