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And Application Business - Research Paper Example

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Research and Application a) JetBlue’s Strategy for success in the marketplace. JetBlue strives to achieve success in the marketplace through attaining the competitive position based on the following premises: Achieve and Maintain Price Leadership by being a low cost passenger airline with high Quality Customer service…
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Download file to see previous pages This Strategy emphatically promises to increase business and maintain a competitive edge in its own segment for JetBlue. The Customer Value Proposition of JetBlue: The marketing strategy and its success so far suggests, JetBlue has relied heavily on Operational excellence as the thrust area of its Customer Value Proposition. The success of the airline so far has been attributed by its focus on an array of operational goals like maintaining a high level of customer service with low costs and stimulating demand with low fares. They strive to maintain a sustained growth pattern by increasing frequency on their existing routes. The results have shown that such initiatives have been well received by the market and the customers have responded well to these efforts. This is further accentuated by feats like attainment of highest completion factor, the highest on time performance and the lowest incidence of mishandled bags. These achievements reflect a high level of operational and management excellence. They obviously enhance the customer experience and perception and augur well for the business. The airline strives to achieve competitive advantage through customer intimacy in certain areas, For example, the high level of customer service measures like maintaining transparency in operations contribute to the value proposition. However, it does not succeed in attaining customer intimacy, though it does succeed in achieving customer loyalty to an extent. It also makes effort to achieve product leadership. However, the efforts in the direction like increasing Live TV channels from 24 to 36; new aircraft and leather seats are not the source of competitive advantage, though they do mean product differentiation to an extent. b) Business risks: The 10 K/A of JetBlue report an array of risks that could harm the business to some extent or the other. However, amongst them the risks that could really affect profits to an extent wherein the ability of the airline to meet the stockholders’ expectations could be threatened are as mentioned hereunder. The basis of differentiation of these risks from the remaining set of risks is the extreme nature of consequences that they may have on the profits of the company in a relatively short span of time. Besides, once incurred, the said risks will require considerable effort and resources to contain and control. Last but not the least, the risks mentioned here are the ones specific to Jet blue and not the ones facing the Airline industry in general, since the general risks are usually responded to better with the industry and Government help. In addition, the stockholders understand and are already more aware of such risks and thus the expectations of the stockholders regarding these risks can be better managed. As such, these risks are more imminent in nature. The critical Risks: a. If JetBlue fails to implement their growth strategy, the business is at a great risk. The growth strategy is aimed at increasing the number of flights in underserved and overpriced areas. The aim is to maintain high quality customer services with low fares and generate more demand. The Low fares are to be compensated for with a high level of operational excellence. This will considerably make up for the low fares and bring costs down while maintaining the rate of bookings at the same time. This means a high profit margin ...Download file to see next pagesRead More
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