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Jet Blue Airways Assignment

Essay by   •  February 19, 2013  •  Case Study  •  948 Words (4 Pages)  •  1,482 Views

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JetBlue Airways Assignment

1. The strategy and operations of the new venture Jet Blue were shaped by Jet Blue team who had numerous experiences in the airline industry for many years. The main director of the Jet Blue strategy and operations of the new venture Jet Blue was CEO and founder, David Neeleman. David Neeleman had been with Southwest Airlines and built numerous experiences and knowledge of the airline industry through this company. David Neeleman wanted to incorporate common sense with innovation and technology to bring humanity back to air travel and attract customers with most efficient airline in the industry. JetBlue was not only about efficiency, but also focused on service. JetBlue would provide high quality service while also producing affordable flying rates.

With the rapid change through technology and innovation, JetBlue aimed to be the first "paperless" airline, substituting computers and information technology for everything from flight planning to aircraft maintenance to the sole use of e-tickets. This way, customers can access to their flight tickets anywhere in the world if they just have internet connection. This will also save time for both customers and airline. The main focus of Ann Rhoades, the executive vice president of human resources was to make fun and exciting work environment and experiences for the employees at JetBlue.

2. The strength that JetBlue faced in the airline marketplace was that JetBlue was able to create a strong organizational culture that reflected the key value that Neeleman sought for. This JetBlue's strong organizational culture was not found anywhere else in the airline market. This strong organizational culture made JetBlue a unique airline in the airline market.

One of the weaknesses that JetBlue faced in the airline marketplace was that when they first started up, many airline analysts predicted that airline market is a tough market to get into and it is extremely difficult for the new venture to get profit off. Another weakness JetBlue faced was JetBlue's startup capital. In order for JetBlue to be successful, JetBlue would have to be setup properly, but this would require a great amount of capital which JetBlue did not have.

3. One of the JetBlue's strategies was to be the first paperless airline, substituting computers and information technology for everything from flight planning to aircraft maintenance to the sole use of the e-tickets. Al Spain was the prime contributor to JetBlue's paperless and efficiency focused management and strategy. Since the world was experiencing internet revolution, Spain took advantage of the technology to cut costs and increase aircraft efficiency by allowing pilots to do pre-flight checks in very short time. This increased the level of motivation to the pilots because they did not have to stress over with mounds of paperwork anymore. With this utilization of technology, JetBlue was able to increase turnaround times and greatly increase customers. Spain also tried to bring a fun and exciting atmosphere along with technological advance.

4. JetBlue constantly and carefully monitored their growth in the airline industry. Rhodes had to go through pressures to make JetBlue grow fast in the airline industry. If JetBlue did not grow fast enough, they could have got into a situation where they lose their market share to other airlines. On the other side, JetBlue saw rapid growth due to their unique strategy that other airlines did not try before. If JetBlue grew rapidly, then the management team would have to hire more employees and expand flight cities.

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