Jetblue Managing Growth - 1239 Words

JetBlue Managing Growth JetBlue Case JetBlue’s main strategy is to be a low cost carrier (LCC) and use differentiation as a competitive advantage. The main problem that concerns this case is that JetBlue has the need for slower capacity growth but the exact size of the cuts from each of the airlines’ two aircrafts was far from obvious. The contents of this case analysis will show how they managed to get to this point through the use of business strategy tools. Also I will give some recommendations on how to resolve the issue at hand. First, let’s take a look at the SWOT analysis (strengths, weaknesses, opportunities, threats). This strategic planning method should give us an overall understanding of all the aspects of JetBlue†¦show more content†¦Threat of Substitutes: High - Lots of different airlines to choose from - Trains, buses, boats, cars can be used instead of short flights. Bargaining Power of Suppliers: High - Airbus has a lot of power because they supply to many other airlines - Embraer has less bargaining power because JetBlue is the only airline to purchase the E190 Threat of New Entrants: Low - Cost is high - Hard to compete against the large airlines not only for customers but space at the airports for their airplanes. Rivalry: High - Especially high with Southwest - Always in competition to retain the best employees and not lose them to other airlines - Always looking for that edge to attract and retain customers Let us now take a look at the Value Chain Model for JetBlue to see how they create value for the customer. Value Chain Activity How it creates value for the customer Inbound Logistics E- boooking creates better seat sale management Operations Two aircrafts gives customers the choice to fly short distances Outbound Logistics A320 has a quick turnaround and spends more time in the air as compared to the E190 Marketing and Sales Distribution Channel: e-ticketing. Effective low cost pricing Service Bill of Rights Considering all the analysis above I would recommend that JetBlue should cut the more of the E190s than the A320’s. With the cost of fuel steadily on the rise, the more fuel efficient A320 makes more senseShow MoreRelatedJetblue Airways : Managing Growth3213 Words   |  13 Pages JetBlue Airways: Managing growth Situation Identification: †¢ The growth rate of JetBlue should be slowed down under the circumstance of insufficient cash flow and increasing fuel price. †¢ Decisions needed for whether to keep dual fleets A320 and E190 or not. †¢ Enhanced information system needed for JetBlue in case of future â€Å"Valentines’ Crisis†. †¢ Customers’ bill of rights should be introduced and developed in depth. Summary: Jet-blue Airways is American low cost airline head quartered nearRead MoreJetblue Airways: Managing Growth Essay2204 Words   |  9 PagesJet Blue Airways; Managing Growth 1. 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