Jet Blue Case Study

Introduction

Jet Blue was founded by David Neeleman back in 1999. It operates in the airlines in industry. They have vast spread network and have a large number of planes in their fleet. Jet Blue's strength reflects their excellent way of management. They keep their employee very happy so that they perform in the best manner possible. JetBlue recently entered the competitive airline industry during a time when the five largest airlines in the country were losing billions of dollars. JetBlue operates in the low-fare category of the industry, but unlike other low-fare airlines, JetBlue is not a “no-frills” airline. The airline offers its passengers amenities such as leather seats, live satellite, TV, and more passenger legroom. The airline also flies its planes from point to point. It does not use the hub system of other airlines. Jet Blue's foundation is related to the nature of entrepreneurship, and it should not forget it. Jet Blue should encourage entrepreneurship and also work to promote it. Jet Blue also must make sure that it changes its strategy keeping in mind the changing market trends. One should always alter the way it carries out business activities as per the demand of people. The situation requires adapting a new strategy then Jet Blue should re design its strategy to suit the latest requirements. Jet Blue has certain kind of strengths, some kind of weaknesses, threats and opportunities as well. It should make sure that the strengths are taken advantage of, weakness should be worked upon and turned into strengths, opportunities should be availed at the right time without wasting much time, and threats should be dealt with cautious. Jet Blue should keep in mind that the market trends are changing they should keep re designing their strategies to suit the latest demands of market. JetBlue recently entered the competitive airline industry during a time when the five largest airlines in the country were losing billions of dollars. JetBlue operates in the low-fare category of the industry, but unlike other low-fare airlines, JetBlue is not a “no-frills” airline. The airline offers its passengers amenities such as leather seats, live satellite, TV, and more passenger legroom. The airline also flies its planes from point to point. It does not use the hub system of other airlines.

By using the point-to point system, JetBlue can be very selective when picking the geographic markets where it wants to compete. Currently, only 22 cities are served, allowing JetBlue to do a better job providing quality service in its limited markets. With 59 percent of all airline passengers being recreational passengers and 28 percent being business passengers, JetBlue must consider behavioral segmentation variables, such as usage occasions, when segmenting its potential markets. JetBlue must consider segmenting on the basis of comfort, entertainment, demographics, and so forth.

Recently, competition has entered this low-fare market and is offering service in JetBlue's markets. The competition is betting their futures on providing a level of service and amenities equal to JetBlue but with a more ...