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-quality customer service.
• • • • • Replicate the same model successfully on a large scale. Maintain the low cost leadership As airline grows the HR will also expand so, company needs to maintain employees and keep them happy. Provide luxury to first class or business class. Offer a variety of places to fly.
Current Strategy • • • • • JetBlue’s strategy was to identify and eliminate non-value-adding costs and use the money so saved to provide service of better quality. Jet Blue is currently competing by offering low-fare prices and high customer service. The main competitive advantages they have are their airplanes, customer service, and flow of business. JetBlue is the first to have cameras set up in the plane so that the pilot can see what is going on while staying in the cockpit. All of these innovations are working by making the customers feel more comfortable and safe. This almost ensures that they will fly with JetBlue in the future. JetBlue is also competing by keeping their operating costs to a minimum. Flying the same model of plane, keeping the workers happy so they do not demand high salaries or leave for higher salaries. Implementing a paperless environment by highly promoting Internet ticket sales are all ways that JetBlue keeps their costs low.
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Due to this. In 2001. which serves the Los Angels area.S. .Value Chain Analysis Supply Chain Management Inbound Logistics The primary base of JetBlue's operations at New York's John F. enabling it fly more plan as a result jetblue was able to fly more plan per day than its competitors and. which was higher than any major U. while at the same time operating efficiently and keeping costs low. JetBlue has equipped their fleet with life rafts. and economy class. Jetblue also choose point-to-point flights over a hub-and-spoke network. business class. Jet blue was able to identify a niche market and cater to it. each aircraft operated an average of 12. Florida and California. late in August 2001 JetBlue began service at its West Coast base of operations. to avoid unexpected problems. To better serve passengers. which reduces the time spend on the ground. Outbound Logistic To meet marketing demand. Jetblue flights ready for the next trip in about 35 minutes. Operations Jet blue operated only single fleet of plans. and there was no division into first class. It uses secondary airport because it didn’t handle too much traffic. life vests and high frequency radios. jEtblue manage to reduce the turn around time of flights. It did not try to fly too many routes instead of concentrating New York. Long Beach Municipal Airport. JetBlue currently serves 22 cities. JetBlue has an experienced management team and a strong company culture with a highly productive workforce that strives to offer high-quality customer service. JetBlue purchased a fleet of 45 new Airbus A320 aircraft since 2002. JetBlue flies over the Atlantic Ocean to prevent congestion during times when weather plays a factor. Kennedy (JFK) airport provides them access to a market of approximately 21 million potential customers in the New York metropolitan area and approximately 6 million potential customers within 15 miles of the airport. jetBlue was able to get more terminal and flight slot.6 hours per day. airline. consequently the more profitable. and is scheduled to place into service another 8 A320s by the end of 2003. JFK has four runways and permits more flight departures and arrivals per day at JFK.
They have also relied on word-of-mouth to promote their brand.com. the television station that broadcast the 24 channels onboard. a comparable type of aircraft operated by many of its competitors.com Service To enhance and maintain a service's value. Only a limited number of airlines in the world have this pilot laptop capability. using VoIP. JetBlue's aircraft are scheduled with minimum ground time to avoid unnecessary time spent at the airport gate. JetBlue strives to communicate openly and honestly with customers about delays and provide free soft drinks and snacks to delayed customers.jetblue. . Marketing and Sales JetBlue markets their services through advertising and promotions. They run promotions that provide discounts to customers who book reservations on www. Jet blue even acquired live TV.jetblue.JetBlue developed Electronic reservation system decided to minimize time and cost by allowing airline 600-odd reservationists to work from home. to be able to maintain its advantage over rivals. All of JetBlue's travel is ticket less and they strongly emphasize booking through their website on www. The A320 is fuel-efficient and is very reliable. it reduced the time and cost. Examining the Value-Creating Potential of Support Activities Procurement JetBlue has been able to acquire 65 new Airbus A320 aircraft since 2002. providing customers with a better service and more comfortable trip. Electronic reduces the hassle of booking tickets and also had the advantage of saving on office rental. All of JetBlue's pilots use laptop computers in the cockpit to calculate the weight & balance of the aircraft prior to departure and takeoff performance. When weather or mechanical problems disrupt service. has a wider cabin than the Boeing 737. Technological Development Each Airbus A320 aircraft is equipped with 162 leather seats in a comfortable single class layout. They encourage customers to make reservations on internet to avoid travel agents.
and nobody looked down on any work.In response to the September 11. JetBlue has low distribution costs. They only use ticket less travel which saves paper costs. with a single class of service. employee time and back-office processing expense. JetBlue recently commenced installation of four cabin security cameras on each of their aircraft with a live feed to the cockpit crew. the technologically advanced Airbus A320. Human Resource Management • • • • JetBlue takes great care in hiring and training its employees. There was no interdepartmental rivalry. Effective Cost Control JetBlue operate only one type of aircraft. Employees initiative was recognized . All employees are eligible to participate in the profit sharing plan and attractive bonuses. 2001 terrorist attacks. postage. spare parts inventory requirements are reduced. Operating a fleet of identical aircraft leads to an increase of cost savings as maintenance issues are simplified. They are enthusiastic and committed to serving their customers and they incentives them to be highly productive. Everybody was given equal importance. and when on ground.they were usually given free tickets or a vacation to show appreciation. Resources/Capabilities Strong Reputation JetBlue's service will motivate their customers to tell others about JetBlue and thereby enhance their brand awareness and high-quality service reputation. and scheduling is more efficient and training cost are reduced. . weather their work was to fly the plan or keep it clean. Every employee knew what was happening in the organization. to their central operations center at JFK.
High Quality:. The Internet is a fast. JetBlue also has minimum ground time to avoid unnecessary waiting time. safe and low-cost channel.com. Buyer Value Chain The Internet is a valuable tool for the buyer.Value System Analysis Firm Value Chain Innovation: The airline currently operates 41 advanced Airbus A320 aircraft. because it enables them to compare costs and ultimately buy a low-fare ticket via JetBlue's website .jetblue. Product Differentiation: JetBlue provides new aircraft service with low fares. Channel Value Chain JetBlue is trying to increase more air ticket bookings on their website www.
it offers standard treatment to all flyers without the luxury of first class or business class. which was an important factor in comfortable travel Jet blue still flew only from JFK. Business class travelers were more likely to prefer airlines that had more space between seats. or the choice of economy class travelers. • .Jet Blue’s problems • • The problem face by jet blue was that it operated single fleet of jets. It also had more seats than galley space.but others are using different airports. which made it an essentially short route choice.
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