JetBlue Airways Case Study
JetBlue Airways: Starting from Scratch Case Study Analysis
This case illustrates how an entrepreneurial venture can use human resource management – and specifically a values-centered approach to management – as a source of competitive advantage.
The major challenge faced by Ann Roades is to grow this people-intensive organization at a rapid rate, while retaining high standards for employee selection, and while building a strong organizational culture.
Strengths
Weaknesses
Clear niche
JFK – protected slots
Political protection
Efficient
Quick turnaround at the gate;
Paperless
Low fares
Better product that Southwest
Wider seats
Less waiting in line
Strong top management team
Experienced
Cohesive
Smart
Well-funded
Flexible workforce
Serious competition if they threaten major carriers
Potential competition with SWA as SWA grows
Though industry for start-ups
Difficult to hire quickly at high standards
No structures for building team and participation as they grow
Lack of standardization in HR policies could be source of inequity, division
Flight attendants turnover could create high training costs, poor service
Jet Blue Strategy:
Low cost, low price
JFK – under-served markets and beachhead for protected revenues stream
Increase demand through low fares
High asset utilization
High productivity (people)
People who might not otherwise fly (eg vacation), cost-conscious.
Dangers of rapid growth:
Can they hire the right “type” of people who fit?
Will the growth lead to fragmentation such that they lose their focus and emphasis on people?
Management spread too thin – lose touch with people
Loss of common vision leads to fragmentation among employee groups
If they don’t grow, competition will fill desirable routes
Major airlines may be able to crush them
Key Success Factors
What are the key success factors?
What do they have to execute on these?
What are the HR practices that make these work?
High asset utilization
High
This case illustrates how an entrepreneurial venture can use human resource management – and specifically a values-centered approach to management – as a source of competitive advantage.
The major challenge faced by Ann Roades is to grow this people-intensive organization at a rapid rate, while retaining high standards for employee selection, and while building a strong organizational culture.
Strengths
Weaknesses
Clear niche
JFK – protected slots
Political protection
Efficient
Quick turnaround at the gate;
Paperless
Low fares
Better product that Southwest
Wider seats
Less waiting in line
Strong top management team
Experienced
Cohesive
Smart
Well-funded
Flexible workforce
Serious competition if they threaten major carriers
Potential competition with SWA as SWA grows
Though industry for start-ups
Difficult to hire quickly at high standards
No structures for building team and participation as they grow
Lack of standardization in HR policies could be source of inequity, division
Flight attendants turnover could create high training costs, poor service
Jet Blue Strategy:
Low cost, low price
JFK – under-served markets and beachhead for protected revenues stream
Increase demand through low fares
High asset utilization
High productivity (people)
People who might not otherwise fly (eg vacation), cost-conscious.
Dangers of rapid growth:
Can they hire the right “type” of people who fit?
Will the growth lead to fragmentation such that they lose their focus and emphasis on people?
Management spread too thin – lose touch with people
Loss of common vision leads to fragmentation among employee groups
If they don’t grow, competition will fill desirable routes
Major airlines may be able to crush them
Key Success Factors
What are the key success factors?
What do they have to execute on these?
What are the HR practices that make these work?
High asset utilization
High