{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

JetBlue Airways Case Notes - JetBlue Airways Challenges...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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).
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern