Summary

The case is all about Jet blue Airlines and highlight on this airlines firms product and service,
goals, visions, mission, core values, strategies, technological changes, problems and natural
disaster solving tactics etc. Jet blue was incorporated in deleware in 1998 and
commenced service in 2000 with primary base of operation at new yorks john f. Kennedy.
The company goal had been to establish itself as a leading low fare, low cost passenger airline by
offering its customers high quality service and differentiated product. The airline focused on
serving underserved markets and large metropolitan areas that have high average fares with a
diversified Geographic flight schedules that include both short and long haul routes. Flying new
planes That are more reliable and certainly more efficient. Hiring the best People by
screening the employees and focusing on service by listening to customerspioneered with new
technological innovation at home reservation, online ticketing system, paper cockpit use, more
focus on customers satisfaction was the good side of this airline.

Valentine’s Day 2007 was a nightmare for Jetblue airlines. Its affect the reputation for
customers friendliness and also exposed the critical weakness in the systems of operation. Bad
communication system was the main reason of not informing the flight cancellation due to
storm attack. In contrast, southeast handled the disaster with the ease by simply canceling
most services during disrupted period

New CEO, Dave barger, added new several services and embarked on capacity expansion to give
the airline new boost. At last 2009 returned to profitability. It’s like to be independent, that’s
why in lost period, not any mergers and consolidation had not
done. The airlines always focus on introducing more goodies for customer in the
following year. It helps to absorb the market position with earning lots of profit.
In 2015 introduce new pricing model, by which passengers were able to choose the
features they wanted or not.

The firm from founding time to present time strict with the goal, vision and mission of
inspire humanity, deliver best travel experience to customers and differentiated models of
serving underserved customers. In fact the faced loss, problems but their goals remain
unchanged and focused on making new strategy instead of compromising in
providing quality customer service. Its the main reason the jetblue airlines are earning lots of
profit with great reputation.
Factors Relative Weigh Score(c Weighte Opportunit Threats(F
importanc t ) d y (E) )
e Score(D) largest
Rating (B) (1-10) B*C (D) Largest
(A-C)
A(1-10) A/158
Socio-cultural factors
Unforgiveable attitudes 6 0.04 1 0.04 5
towards the company’s
mistake(T4)
Air travel is much safer 4 0.03 5 0.13 -1
than other means
0
Effects of social 8 0.05 6 0.30 2
stratification on the
airline
Security Concerns 9 0.06 6 0.34 3
Demand of Flight 5 0.03 7 0.22 -2
Service
Effects of New Entrants 8 0.05 7 0.35 1
Economic Factors 0
Security Cost(T3) 8 0.05 2 0.10 6
Economic Downturn 6 0.04 3 0.11 3
Change in Fuel cost 9 0.06 2 0.11 7
(T2)
Cost of Service in new 7 0.04 6 0.27 1
products
Consumer Income 7 0.04 6 0.27 1
Level
0.00 0.00 0
Technological factors 0
0
ticket booking Online 8 0.05 7 0.35 5 1
service
.Rate of technological 8 0.05 9 0.46 3 -1
change
.Using environment 6 0.04 5 0.19 1
friendly technology
Competitive factors 0
1.Fare pricing 9 0.06 10 0.57 1 -1
2.Customer service 10 0.06 9 0.57 2 1
3.Routes 7 0.04 7 0.31 0
4.Flight schedule 6 0.04 6 0.23 0
5.Types of aircraft 2 0.01 4 0.05 -2
6.Safety record & 8 0.05 8 0.41 4 0
Reputation
Political & Legal 0
Factors
1.Terrorism(T1) 9 0.06 2 0.11 7
2.Deregulation(T5) 8 0.05 3 0.15 5
158

Opportunities:

1. Fare pricing
2. Customer service
3. Rate of technological change
4. Safety record & Reputation
5. ticket booking Online service

Threats:

1. Terrorism(T1)
2. Change in Fuel cost (T2)
3. Security Cost(T3)
4. Unforgiveable attitudes towards the company’s mistake(T4)
5. Deregulation(T5)

Strengths:

1. High level of customer satisfaction by their strategic development.

2. Superb performance in the new market.
3. Strong cash flow.
4. Automation of activities.
5. Strong brand image.

Weakness:

1. The profitability ratio and net contribution percentage of Jetblue Airways are below the
industry average.
2. Organization structure is only compatible with present business model.
Problems and challenges:

1. Terrorism
2. Change in Fuel cost
3. Security Cost
4. Unforgiveable attitudes towards the company’s mistake
5. Deregulation
6. Communication gap.

Recommendations:

1. Terrorism can be decreased by the collective initiative of all the airline companies along with
govt. as jetblue has strong market position in the market the can influence initiative of govt.
towards terrorism to make it stronger.
2. Change in fuel cost can be faced by the company because they have strong cash flow.
3. Security cost can be decreased by the strong cash flow.
4. Strategic development used in customer satisfaction in critical situations.
5. Deregulation can be decreased by govt. initiatives towards the enforcement of laws and
regulations in the airline industry.
6. Communication gap can be reduced by using software like ERP and EDI.