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 to charge fees for services such as for checking in in-person, booking with a credit card, overweight baggage by the pound, luggage per distance, booking online, bags that want fit under the seat, transferring tickets to another persons name, and to use the bathroom. From these new charges airlines have reported earning a $2.1 billion dollar profit in 2010 (Mayerowitz, 2011).
What is Jet Blue’s strategic intent?
Airlines, such as JetBlue, strategized in a way that