Background of JetBlue Airways JetBlue Airways Corp. is one of the major American low-cost airline and one of the best examples of a succeeding business because of excellent customer service based on low operating cost relative to the superior product offering (offer a product superior to competitors at affordable prices). JetBlue is established in 1999 by David Needleman and commenced operation only February 11‚ 2000 with new Airbus A320 aircraft operating between Buffalo and Ft. Lauderdale (Nasdaq
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External Environment: Opportunities and Threats for JetBlue Airway Societal environment After September 2001‚ air travel decreased sharply and major airline companies had lost the money. This makes those airline companies to increase the debt by tapping their credit lines and/or issuing bonds. These actions were vital to help the carriers survive the dramatic decline in passenger levels and fares‚ and the sharp increase in losses‚ but left most of the major airlines burdened with huge debt
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JetBlue Airways IPO Valuation Summary In July 1999‚ David Neeleman announced his plan to launch a new airline that would bring “humanity back to air travel.” Despite the fact the airline industry had 87 new-airline failures in U.S. over the past 20 years. Neeleman’s plan convinced a group of investors and quickly raised $130 million from venture-capital community. This is the way JetBlue Airways established. With its strong capital base‚ JetBlue acquired a fleet of new Airbus A320 aircraft and focused
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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
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Summary This report discusses whether and how JetBlue should list its shares on public from several angles. Two principal incentives prove that the IPO process could be inevitable‚ even without an optimal offering price‚ and valuation models including multiples comparison and income analysis imply the firm may be underpriced. Given the situation and all assumptions‚ an increment in either offering size or price is suggested. 2 SWOT and Background JetBlue started by following Southwest’s approach of
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Case study—JetBlue airways IPO valuation Introduction: As a leader of airways industries‚ JetBlue is successful because of professional services and a good management team. In 2002‚ JetBlue became a public company. Despite the fact that US airline industry had witness 87 new airline failures over the previous 20 years‚ Jetblue overcame difficulties and expressed confidence in the bright future. Before going public Before going public in 2002‚ JetBlue has outstanding advantage in the whole
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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 –
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At the beginning‚ JetBlue management set the tone for themselves that they would be different then other airlines. To do that they set values for all employees from top to bottom to follow and they set up an attractive pay and a unique benefits package that would allow for successful recruitment and retention of employees‚ while significantly reducing the chance of a union moving into the organization. Equal Employment Opportunity Laws There are certain Equal Employment Opportunity laws that
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JETBLUE AIRWAYS Paper 1: Crafting & Executing Strategy Strayer University BUSS 599: Strategic Business Table of Contents Introduction…………………………………………………………………..….…….p. 3 Trends in the Airline Industry……..……………………………….………..…….......p. 4 Jet Blue’s Strategic Intent………..……………..…………………..……..……..........p. 4 Jet Blue’s Financial Objectives and Related Success………………..…..…….....…...p. 5 Strategic Elements…………………………………………..……….…..……........…p.5 Jet Blue’s Strategies for the Future…………………………………………
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Chipolte External Factor Evaluation Analysis of the External Environment Within the fast casual segment‚ there are certain external trends and forces that Chipolte must address. Some of these trends and forces can lend themselves to being opportunistic in nature; however there are some that can threaten the well-being of the restaurant. The success of a company ultimately depends upon how well it can use its strengths to take advantage of external trends. By utilizing an External Factor Evaluation
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