Case Analysis - Jetblue Airlines

JetBlue is the brain child of David Neeleman born in Sao Paulo, Brazil but raised in Salt Lake City, Utah. Since its inception in 1999 David Neeleman and JetBlue have based their business model on the premise of providing high-end customer service at low-end prices.(1) This business model has overall been successful for the airline in this highly competitive market. Despite the events on September 11, 2001, the day that changed air travel forever, JetBlue experienced 18 consecutive quarters of profit after that fatal day. (1)
The strategy that David Neeleman and JetBlue infused in the business model of “high-end customer service at low-end prices” was a smaller but more productive workforce, automation of certain company processes, better use of available technology, and the decision to standardize their aircraft with new airplanes - the Airbus A320. The decision on a single model of plane would also help to reduce maintenance and training costs that are usually increased with multiple types of aircraft.(2) The aircraft themselves were reconfigured to provide a single class for all passengers, with all leather seats, wider leg room, TV monitors for each seat, free entertainment with 36 channels of LiveTV, 100 XM radio stations, a movie channel from FOXInflight, and free all you can have drink and snacks.5 JetBlue also serves mostly domestic travelers in smaller, less congested airports to improve turnaround of its flights.   Quicker turnaround of the aircraft equals more flights which in turn increases revenues.
JetBlue has a strong differentiation with its business model and strategy of high-end customer service at low-end prices but that differentiation can be easily imitated by other existing airlines or new entrants into the industry.   With this opportunity in mind, I will be looking at JetBlue’s strategy to determine what recommendations we could provide to strengthen their core competencies and business level strategies to assure that their...