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September 4. 2008
Jet Blue –
The source of Jet Blues competitive advantage lays in this young company’s penetration into a mature and competitive airline industry. Jet Blue was passionate about “bring humanity back to air travel and making the experience of flying happier for everyone”. The company was able to deliver this innovative and distinct flying experience to customers for record low prices. Jet Blue service was a combination of style, value and quality servicescapes. Ticket less, one way flights coupled with an exceptional level of service made Jet Blue a success. Founded in 1998, by 2004 Jet Blue had quadrupled its revenue and made profit every year. (Exhibits A,B,C and D demonstrates growth and performance)
In spite of the rising cost of fuel after the tragedy of 911, Jet Blue flight prices remained low. The powerful Jet Blue brand offered all consumers large and comfortable leather seats; TV head rests, brand name snacks, Dunkin Donut coffee, XM satellite radio, Direct TV and 20TH Century Fox movies for in flight purchase and Bliss Spa comfort kits. Customers responded well to upscale services at a low price. Based in the NY market, Jet Blue is positioned to service a large population of savvy travelers.
Jet Blue is not a firm that is growing to fast in my opinion. However; as the company matures and grows, they may find difficulty in sustaining its position as a high, frills carrier. The cost of fuel had increased by 54% in 2005, aircraft maintenance, purchases cost and operation lost of 20 million is enough reason to consider entering into partnerships. Employees should feel secure about their company ability to provide then with good income. The need for security and t ...