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JetBlue Airways: Starting from Scratch Case Solution & Answer

JetBlue Airways: Starting from Scratch Case Solution

Introduction

The JetBlue Airways was founded in 1999. At the time, it competed against Southwest Airlines, AirTran, and Delta. However, JetBlue was able to turn a profit very quickly. During 2001, the airline had profits of $38.5 million. So, it was not just another low-cost carrier. There were several reasons for JetBlue’s success. The company was innovative and efficient.Unlike most airlines, JetBlue focuses on business travelers. After all, these travelers are usually more profitable than leisure travelers, so JetBlue has focused on attracting these customers. They also tend to be the ones who are willing to pay the lowest fare, but that is not enough. A successful airline must also be competitive. Besides, JetBlue is one of the few airlines that offer a hybrid status.

The airline was one of the few low-cost airlines to produce a profit in 2001, and it quickly became one of the top three. The company has since become one of the most profitable airlines in the world. During this time, JetBlue has expanded its network from New York to Boston, with 76 daily flights through JFK. The company’s first major move was to hire David Barger as its CEO(O’Reilly, 2001).Its mission is to “bring humanity back to air travel”. The airline’s core values are safety, integrity, and fun. The airline has an ambitious vision to become the leading U.S. low-cost carrier. In addition to its low-fare approach, JetBlue is also introducing routes with a strong VFR network. Aside from this, it has diversified into new markets.

With its goal of bringing humanity back to air travel, JetBlue has expanded its network to include many cities in New England and Boston. The airline has also made an effort to attract business travelers, which are more profitable for airlines. For example, it has introduced flights in Mexico and Latin America, where its VFR-speed network is the strongest. In addition to providing quality service, JetBlue is also the first airline to offer live satellite television in every seat.

Problem Statement

n its first decade of operations, JetBlue took off and grew. It is the only airline to have grown by leaps and bounds in an industry where more than 100 startups failed since 1978. The airlines were characterized by high fixed costs and low profit margins. A minor revenue shortfall could have major financial consequences. The company started with a blank canvas and a last-mover advantage. The company also made information technology (IT) central to its plot.Despite its success, JetBlue has continued to experience operational issues.Its founder wanted to create a firm focused on customer advocacy and employee satisfaction. JetBlue aspired to become a major player in the airline industry. With its new strategy, the carrier is able to grow without the need for massive investments.

Situational Analysis

The airline industry is evolving rapidly. In order to stay competitive, the company must continue to develop its culture of excellence. It must provide a positive and healthy workplace to its employees. The people are the most important resource of an airline. The human resource management philosophy is integral to the success of the airline.Besides training their workforce, the company also provides them with an environment where they can express their core values and show their concern for the customer. Its employees must be loyal to the company. Its management is committed to fostering these values through their policies and practices. This is a key part of the strategy of the airline. If it is aligned with the core values of the business, it will be a success.It was the combination of HR practices and information technology that allowed JetBlue to become so successful, despite the many challenges in the airline industry. The founder wanted to create a firm focused on customer advocacy and positive employee experiences. The company pioneered e-ticketing and IT in aircraft maintenance and incorporated best practices in the management of its aircraft.

Using a people-centered organizational approach, the leadership of JetBlue took a different approach to change than other companies. The company’s strategy was to “bring the human element back to air travel” and to encourage its crewmembers to connect their daily work with the company’s overarching purpose. To accomplish this, leadership began by bringing crewmembers into conversations. They sought to make people more emotionally connected to the organization and to help them understand the connection between their work and the success of the organization.By following a people-centered approach, JetBlue managed to gain market share. In fact, its customers were able to benefit from its services. For instance, they were able to get televisions and pillows on board. They also maintained a low price point compared to its competitors. As a result, the airline was able to grow faster than its competitors.This is the ultimate example of how a people-centered organization can increase its capacity. Its culture is a key component in any organization, so, it is critical that employees are aware of their brand’s value and its value.

When JetBlue Airways first started hiring, they hired people for their integrity and willingness to learn. These employees must also fit within their culture and have a good knowledge of computers. They must also have the right cultural fit to work with the company. This means requiring several interviews and asking applicants to provide evidence of past integrity problems. The standards of employee selection were very high, but they were worth it because they resulted in a better-trained workforce.While JetBlue does not offer a stock option plan, it does have a profit-sharing program. Some organizations tie profit-sharing to individual performance, and this allows them to retain their best employees for a longer time. They also hire pilots who fit the company’s core values. If a person fits these criteria, they will be a great fit for JetBlue.

Critical Analysis

SWOT Analysis

Strengths

One of the strongest aspects of JetBlue is that it is a very innovative company. They are constantly trying out new technologies, which makes their turnaround time even faster. They also want to improve their customer service and their aircraft. They are putting a lot of money into new planes, which improves the experience for customers. Their low costs and low operating costs also help them generate higher revenue per plane. They also have a very low workforce turnover, which is a positive for a company with a high turnover rate.The company has several internal advantages. They offer a competitive cost structure, low fares, and low debts. Their employees are efficient and diverse. The company’s limited internal weaknesses make it difficult for competitors to compete with them. This airline focuses on the middle-class population and has few customers in the high-class. In addition to the competitive cost structure, the brand is also known for its culture………………………..

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