JetBlue Airways Case Notes - JetBlue Airways: Challenges...

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JetBlue Airways: Challenges Ahead CASE ASSIGNMENT David Neeleman has asked you to participate in a strategy session to discuss the competitive challenges facing JetBlue Airways. The young airline is at a crossroad and needs to develop a strategy to promote growth and secure profitable performance. He has emailed you a copy of the agenda, which includes the following key items: I. Financial Indicators II. Integrated Cost Leadership/Differentiation Strategy A. Is transitioning from a differentiation strategy appropriate? What are the risks? How can it be accomplished? B. Cost Management C. Maintaining a Service-Oriented Culture D. Enhancing the Quality of the Experience III. Competitive Rivalry and Dynamics IV. Strategic Options A. Domestic Growth B. Alliances C. International Expansion Knowing he expects you to fully contribute to the decisions that will be made during the meeting, you have decided to prepare by completing the following steps: 1. Summarize the external environment, including conditions in the general, industry, and competitor environments. 2. Outline the company's internal capabilities and weaknesses. 3. Determine if JetBlue's competitive advantage is sustainable. 4. Conduct a Value Chain analysis to identify value-creating activities. 5. Summarize JetBlue's current strategy. 6. Define customer relationships. Be ready to make and support your recommendations. 201
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JetBlue Airways: Challenges Ahead STRATEGIC MANAGEMENT INPUTS 1. Summarize the external environment, including conditions in the general, industry, and competitor environments. The general environment is focused on the future and can be analyzed by considering six environmental segments; analysis of the industry environment is focused on the factors and conditions which influence a company’s profitability within its industry; and analysis of competitors is focused on predicting the dynamics of competitors’ actions, responses, and intentions. In combination, the results of these three analyses are used to understand the company's external environment and influence its vision, mission, and strategic actions. a. The General Environment Demographic: Routes include New York City and Fort Lauderdale, FL – distinct populations are found in each of these cities, including (but not limited to) corporate, retiree, and student/spring break travelers. Expanding destinations to include airports in California, Florida, New York, Utah and Vermont. Significant decrease in corporate customers since 2001, but trend reversing by 2006. Economic: 1978 Airline Deregulation Act created intense rivalry between airlines. Downturn in U.S. after 2001 terrorist attacks - most airlines struggled, but JetBlue reported eighteen consecutive quarterly profits. IT spending continued, despite 2001 terrorist attacks (and industry losses).
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This note was uploaded on 01/06/2012 for the course MGT 4027 taught by Professor Stein during the Winter '11 term at Southeaster Oklahoma State University.

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JetBlue Airways Case Notes - JetBlue Airways: Challenges...

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