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Business Strategy and Planning: JetBlue Airlines

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Added on  2020-03-16

Business Strategy and Planning: JetBlue Airlines

   Added on 2020-03-16

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JetBlue Airlines 1BUSINESS STRATEGY AND PLANNING: JETBLUE AIRLINESBy Student’s NameCode+ course nameProfessor’s nameUniversity nameCity, StateDateBusiness Strategy and Planning: JetBlue Airlines
Business Strategy and Planning: JetBlue Airlines_1
JetBlue Airlines 2JetBlue’s success has been developed on low cost and customer friendly business strategies. JetBlue presents itself as a cost-sensitive and the no-nonsense airline which is dedicated toproviding convenient and quality services to the customers at a lower cost. Through its hybrid business model, JetBlue successes rebuilt itself after the 2007 snowstorm crisis that paralyzed its operations (Wei, et al., 2013, p. 88). In the intense competitive airline industry, customers enjoy a high bargaining power because of numerous choices. Customers only choose services at a lower price. Likewise, airlines use price as a competitive strategy (Brown, et al., 2007, p. 123). Hybrid business model is defined as a mixof several models with an aim of creating a competitive strategy. In the airline industry, the model is a combination of low-cost effectiveness and broader and diversified routes and services that were traditionally offered by the legacy carriers. The legacy carriers use low-cost strategies, point to point routes, and franchised regional routes to increase their load factors as well as gaining passenger traffic (Sekhar, 2009, p. 67). To compete with the legacy carriers, JetBlue, a low-cost carrier, combine both long haul and short-haul routes. Conversely, the airline has also ventured into inter-regional and international routes. Although the model is short-lived and needsto be reviewed from time to time, it has helped JetBlue to enter the markets that were previously controlled by the legacy carriers (Mazzucato, 2002, p. 55). There are several success factors associated with the JetBlue’s hybrid business strategy,First, there is a rise of PRASM resulting from Domestic Operations. PRASM refers to Passenger revenue per available seat mile. PRASM is a fundamental metric in the industry. During the 2015/16 period, legacy carriers such as Delta, American, and United faced the adverse decline oftheir unit revenue after the dollar’s strengthening against other currencies. Travelling from other
Business Strategy and Planning: JetBlue Airlines_2

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