JetBlue Airways Case Study: Strategic Management Analysis

This case study examines JetBlue Airways, exploring its strategic challenges and successes. It analyzes why JetBlue struggled to sustain its Blue Ocean Strategy, focusing on profitability and competitive pressures. The study identifies JetBlue's competitive advantages, such as value innovation, a single aircraft type for cost efficiency, and a focus on employee satisfaction. It offers recommendations to maintain its strategic profile, including a focus on profitability, entertainment investments, and delay reduction. The case also evaluates the impact of international expansion on JetBlue's business strategy, concluding that it would not necessarily create extra pressure, and may not require a strategic shift, as it can capitalize on untapped markets and expand its customer base, while retaining a focus on its core strategy of providing low-cost, high-quality service.

Running Head: Blue 0
Strategic management

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Q1. Despite its initial success, why was JetBlue incapable to sustain a blue ocean strategy?
Ans1. JetBlue was incapable to nurture the blue ocean strategy because the organization was
not in a position to earn a vast amount of profits. This resulted in profits and growth of the
organization lagging behind its rivals. This tends to the organization share prices going down
and degraded business performance. Despite its initial growth and success, JetBlue was
incapable to foster a Blue ocean strategy as because it is a win-win situation for the customers
of JetBlue but the organization was not in a state to attain success. Therefore, they were not
capable to deal with the difficulties. To resolve this concern, the organization takes an effort
to change the service provider in order to serve passengers. They maintained to execute its
business processes and discover an opportunity to modify positive operational strategies in its
working style to nourish the sustainable edge in the aviation industry (Matos & Matos, 2017).
Q.2 a) Given St. George statement, which strategic condition is JB trying to achieve: cost
leader, differentiator, or blue ocean strategy? Explain why.
Ans2. a) JetBlue was expected to attain a BLO strategy due to the reason that they provide
excellent services. This airline is the best aviation enterprise that delivered a free check in the
passenger luggage and delivered the greatest legroom space for the travellers. It is stated that
JetBlue determined this service under the Blue ocean strategy by delivering related premium
services. It has become common and gained a sustainable edge over its services and rivals in
the industry (Weiss & Friesen, 2017).
b) Which strategic moves have the new CEO put in place and why? Discuss whether they
concentrate on operating costs, or value creation or both instantaneously.
Ans. The strategic drive that Haynes put in a condition does not correspond with St. George’s
because they believed that air travel is a service business and not a commodity, which is
moving towards commoditization (Johnson, 2015).
Q3. Why is JetBlue experiencing a competitive advantage? What recommendation must be
given to maintain its strategic profile?
Ans3. JetBlue is subjective to experience a competitive edge because of the following
aspects:
 Value Innovation: It is to be stated that it made the airline different and unique from
all others. It was capable to induce the consumers at a lower cost. They are capable to

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get a strong strategic advantage and diversify to a non-contested market condition. In
a short period, JetBlue was capable to generate a blue ocean.
 They are capable of experiencing a competitive edge as they utilize only one type of
airplane i.e. Airbus A320 to decrease the maintenance cost and pilot training.
 They can fly at a specific period so that they can directly associate to the huge number
of population in the city pairs.
 It is to be stated that the employees of the company were provided top priority, as
they are an integral part of the organization.
 They need to take into consideration that they should not charge extra cost for
baggage as it should be free for the traveling passengers (Shockley, Ureksoy,
Rodopman, Poteat & Dullaghan, 2016).
(Gunarathne, Rui & Seidmann, 2018)
Recommendations-
 JetBlue can greatly concentrate on profitability and performance in all extents of the
chain without sacrificing the organization’s core strategy of delivering high quality
and low-cost to the customers.
 They should invest a huge amount of capital into the creation and delivery of
entertainment in the flight in the form of LiveTV, which can be profitable and
successful for the company.
 They can also improve to the extent to reduce unnecessary delays in the form of gate
congestion.
 They can recapitalize its segment by using differentiation and low-cost strategy,
which can lead the airlines to follow practices, which can assist in achieving success

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and growth of the company (Suklev, Fidanoski, Simeonovski, Mateska & Zlatanoska,
2018).
Q.4 Would this international expansion carry extra pressure on JetBlue business strategy?
Alternatively, would this expansion need a strategic shift?
Ans4. No, the international expansion will not put extra pressure on the business strategy of
JetBlue. This is because adding international routes and associating U.S. East Coast to
Europe will assist to customers as earlier JetBlue cannot fly them everywhere so that
passengers have an alternative to fly wherever they want, which can build loyalty and trust.
The passengers will get more benefits when they fly only one airline. It would be more
helpful to the passengers who may be less likely to defect. It also increases the credit base in
the manner that if JetBlue adds Europe, more passengers may apply for its credit cards as
they can use their points once in a lifetime. It is quite evident that if JetBlue expands from
U.S. Coast to Europe then it will more low-risk and they do not have to add a new
maintenance program, retain pilots, and develop a new business class seat (Min & Joo, 2016).
It is to be stated that international expansion does not need to shift in the strategic
profile of JetBlue as just need to concentrate on untapped markets and metropolitan areas. It
is very significant for the JetBlue to expand in order to continue their growth rate and
development. They need to penetrate new markets for market advancement and development.
This extent from growth would need JetBlue to develop and sustain hubs in international
markets. It would be less costly for the organization to acquire smaller hubs in this industry.
Their main concentration will be on middle and lower level passengers who want to fly
globally at a lower cost (Corbo, 2017).
If it needed a strategic repositioning, then it moves to a direction that it delivers point-
to-point service as several in-flight facilities and caters to the niche segment. They need to
provide comfortable seating and additional amenities to the customers. They can use the
business strategy to provide unlimited beverage and snacks and the customers have the option
to buy the best food products and other products such as pillow sets and blanket. They can
also concentrate on using innovation and customer satisfaction. It is to be stated that
following their strategy of delivering at cheaper costs, they can retain their customers for a
long time (Gillen & Lall, 2018).

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