Jetblue Airways: Managing Growth
Jet Blue Airways; Managing Growth
1. Jet Blue´s Business- level strategy; value and cost drivers Jet Blue uses to create and maintain ist competitive position
Founded by the discount airline veteran David Neeleman in 2000, JetBlue Airways has quickly become one of the largest discount airlines in the United States. Starting primarily by serving the East Coast, the airline has since expanded throughout the country and entered the international market. The reasons for its early success are numerous: JetBlue entered the market with one of the largest levels of liquidity of any start-up airline; it met the needs of customers’ whose primary concerns are price and route; and it successfully defined its brand and differentiated itself from competitors by offering an above average customer experience and amenities for a discounted price. They are offering fares with the “point to point” system. JetBlue´s business-level strategy is therefore a mix of cost-leadership and differentiation. David Neeleman’s idea behind JetBlue was to start a company that combined the low fares of a discount airline carrier with the comforts of a small cozy den in people’s homes. His vision involved both business and leisure customers to have cheap and affordable flights throughout the United States and abroad on newer aircraft that are not only comfortable, but are equipped with modern entertainment options, and a customer centric business model which makes customer service a number one priority. In contrast to its competitors, for example, JetBlue offers fares up to 65% lower but added comfort features such as assigned seating, leather upholstery and satellite TV on individual screens in every seat. Moreover, they are practicing a “get-to-the-destinations-at-all-costs” culture, which makes it their declared aim never to cancel a flight. JetBlue Airways does not operate to a traditional mission statement; rather, it operates to a set of core values: Safety, Caring, Integrity, Fun, and
1. Jet Blue´s Business- level strategy; value and cost drivers Jet Blue uses to create and maintain ist competitive position
Founded by the discount airline veteran David Neeleman in 2000, JetBlue Airways has quickly become one of the largest discount airlines in the United States. Starting primarily by serving the East Coast, the airline has since expanded throughout the country and entered the international market. The reasons for its early success are numerous: JetBlue entered the market with one of the largest levels of liquidity of any start-up airline; it met the needs of customers’ whose primary concerns are price and route; and it successfully defined its brand and differentiated itself from competitors by offering an above average customer experience and amenities for a discounted price. They are offering fares with the “point to point” system. JetBlue´s business-level strategy is therefore a mix of cost-leadership and differentiation. David Neeleman’s idea behind JetBlue was to start a company that combined the low fares of a discount airline carrier with the comforts of a small cozy den in people’s homes. His vision involved both business and leisure customers to have cheap and affordable flights throughout the United States and abroad on newer aircraft that are not only comfortable, but are equipped with modern entertainment options, and a customer centric business model which makes customer service a number one priority. In contrast to its competitors, for example, JetBlue offers fares up to 65% lower but added comfort features such as assigned seating, leather upholstery and satellite TV on individual screens in every seat. Moreover, they are practicing a “get-to-the-destinations-at-all-costs” culture, which makes it their declared aim never to cancel a flight. JetBlue Airways does not operate to a traditional mission statement; rather, it operates to a set of core values: Safety, Caring, Integrity, Fun, and