JetBlue Company Strategy Analysis

According to (Smith, 2012), JetBlue was the best-funded startup in the history of U. S. aviation founded in 1999. The business started when the creator realized that we now have many needs to minimize the time taken by travelers to book their journeying. Neeleman decided to make use of the technology to come up with a system that will enable the customers to lessen their time that they use while ready to be attended. The creator of the airline was dealing with different carriers before making a decision to create JetBlue Company that can come following the first fail. He was a great admirer of Kelleher and Southwest, but he mentioned that there have been two apparently contradictory forces at the job if an airline could be successful.

The very first thing was that the organization needs to focus on one's strategy. Also, from those words, Neeleman comes up with an opposing decision. He says that the world market will keep on changing from time to time. Therefore, you can find every need to keep on changing to conform the new consumer checks changes. Regarding to (Araujo, 2013), changes in market demand often happen, and it is importance for an organization to improve its products to adopt the needs of the marketplace otherwise it will be unable to outdo the fantastic competition in the market today. Therefore, we can see that Wayne concurs with Neeleman.

In his new airline, Neeleman started with several important beliefs that could establish his organization to be of success. The first thing that he mentioned is that you need to look where people what things to travel. From his observation, he noticed that one of the interesting reasons for having the air travel business is the fact that almost all participants about operation are in the general public domain. From this, you can simply see how the demand for the flights is in different markets with different prices. Therefore, so that you can bring this into reality from the world of ideas, you must do a lot of computer modeling to check on the sensitivities of the load at different prices.

After his try to set up a fresh kind of flight now he wished to set up a new form of any carrier. The brand new flight would leverage technology for basic safety and efficiency, and since customer demand and services will be the most important secrets of success, he was concentrating on having a lot of determination to the people. He said that these were a new kind of low-fare flight with great people and innovative thinking. They offer friendly services and they he was aiming at providing people back again to flights.

All this was simply a way of creating a good strategy that the business could use so that they can offer significant personal services, develop a state-of-the-art revenue management system. Off their strategy, the flight was concentrating on offering a solo school of services to their customers with a fare averaging at 65% less than your competition. Through taking this task, they could be utilizing all their resources since no seat would stay ticketless. The solution could be the best way thus relieving the travelers the burden of paying two ways of which would be one a significant problem to them. The other strategy that the flight arises with to enhance their customer services was to give a voucher of $159 in the case of any hold off in airline flight for more than one hour for any reason apart from unfavorable weather conditions or air traffic. These were also to give out a voucher of $25 for misplaced bags. From these strategies that the airline built helped it to have significantly more travelers contributing to their development.

The other factor that leads to the success of the flight had enough capital to begin the airline. Individuals were showing him that having $30 million was sufficient to start out his company. To him, this is just but a peanut amount since he was aiming at gathering $130 million to start his flight. He said that airline is something that should be set up properly from the beginning through taking things right and using a cushion at making the right decisions. Many people who were venturing into this industry needed advantage of the growing opportunities to rent somewhat than purchasing airplane. For Neeleman who once sat on the mother board of a leasing company and show how rewarding the lying business was, he made a decision to buy his airplanes. Having an experience in the Morris Air, he was with the capacity of getting enough capital within a short while as he have in Morris air that was a great success. He managed to get the starting capital without offer on planes, no airport terminal slot machine games, and even without the license of the take flight. Therefore, there is great trust on him. Through having satisfactory starting capital which is very importance in business corresponding to In (Smith, 2012), he was able to have a great foundation of his airline. Good business base opens up ways to the success of the business enterprise with minimum hazards of collapsing.

In any business, there should be a team of management people or even a person manager. These people act as the drivers of the success of the organization. Regarding to (Griffin, 2007), management decisions are extremely importance in the progression of the businesses. If indeed they make flaws or weak decisions them, they will fail the business enterprise. However, if indeed they make good decisions, they will donate to the success of the firm. Neeleman was acutely aware of the importance of a reasonable management team. He decided on people with good records of their previous workplaces, and all the management users had experience of fewer than a decade in the airline work. People of the management team includes,

Thomas Kelly, who was simply a long-time partner of Neeleman at Morris Air and Start Skies

Dave Barger, chief executive and chief functioning official, he was doing work for New York Air and put in ten years operating Continental Airlines.

John Owens, key financing officer, was the treasure of Southwest Airlines for 14years.

Ann Rhoades, professional vice leader of human resources, had more than 30years of experience in service-based businesses.

These guys added a lot to the development of the airline. Regarding to Stewart, 2008, they presented a meeting every week which was with a two-hour telephone conference call. Therefore, they could produce great ideas to help in building the company. With these men who have significant experience in the field, then your company acquired a great deal of advantages over its opponents. Also, they were from different parts. So the physical dispersion shows diverse life styles and preferences of the JetBlue team.

The value of a business operates as the reflector of the complete business. It enables the employees to work towards reaching their expected value. In JetBlue, the management team sat right down to draft the principles of the business. A number of the members wanted these to concentrate on financial goals. Two people of the team refused this proposal. They presumed that values drive all other activities and were the basis for the development of a business. Rhoads who was simply responsible for values where they must build the company held two days and nights meeting to help in discovering values which she constrained the 20 top management from including financial issues in the beliefs. Finally, the customers produce five values which include; safety, caring, integrity, fun, and love. While attempting to achieve these benefits they caused the achievement and success of the JetBlue.

Rhoades was also given the responsibility of making JetBlue's human resources practices. She came up with human resources management approach that tailored careers, pay, and benefits posting to different employee groups. Through repeating this, the business was intending to ensure that there is overall equality in treatment. Relating to (Banfield, 2011), having fair treatment to employees make them feel concerned, and part of the firm as a good staff and employer romance brings success in the business because the employees work toward providing the best rather than doing work for personal interest.

Each staff was supposed to build up to the set time, of course, if you are happy, you help more hours the organization payed for the overworked hour. The repayment in other airlines was $19 each hour, but JetBlue was offering the addition of $1 per hour. Lots of the employees were part-time, however the corporation was providing medical, 401k and profit-sharing benefits and dual payment if indeed they work during vacations. Therefore, the airline offered a very friendly environment, and the employees were attempting to attain the worthiness of the business.


Araujo, L. &. (2013). Proactive companies: How to foresee market changes. Basingstoke: Palgrave Macmillan.

Banfield, P. (2011). Advantages to human tool management. . Oxford: Oxford College or university Press.

Griffin, R. W. (2007). Basic principles of management: Central ideas and applications. Boston: Mass: Houghton Mifflin.

Smith, D. M. (2012). Institutional money management: An inside look at strategies, players, and practices. . Hoboken, : NJ: Wiley.

Stewart, C. H. (2008). Lessons discovered: How JetBlue Airways used apologia and new multimedia to endure a crisis---a case study. Virginia, : REGENT School.

Stich, R. (2010). . Background of U. S. Aviation Disasters1950 to 9/11. New York: Silverpeak Publ.

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