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JetBlue Airways, founded by David Neeleman in 1999, known as the no-frills low cost airlines, is known for rising to success in a short span of time, especially when the economy was low. Their success is attributed to operational strategies, low-cost practices, high customer…
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Case 1
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Download file to see previous pages 1. Innovation: Innovative approaches to cost-cutting like simpler ticketing system, personal TV for every passenger, uniform and efficient flight machines, usage of technology to reduce wastage, time etc have contributed to the successful establishment and sustenance of JetBlue during economic slowdown. Providing work-from-home opportunities for ticket reservations and planning also added to their cost-savings in infrastructure and staff.
2. Standardization: Low and uniform operating costs were an advantage to the then market conditions that demanded short passenger trips. Standardization in their services, like uniform class and trained interchangeable crew members also helped in saving costs and improving efficiency.
3. Competitive advantage: JetBlue’s cost-cutting strategies worked well while providing services better than counterpart low-cost airlines. JetBlue focused on cutting non-value adding costs to provide better quality. They invested higher amounts in equipment that required low maintenance; for example, personalised televisions versus meals; leather seats versus fabric ones.
4. Hiring: Neeleman’s strategy of hiring the best and experienced people in industry, like Dave Barger, and enthusiastic customer service professionals was advantageous of not only acquiring more customers but also in retaining their customers during testing times.
5. Customer focus: Their strong customer focus and genuine service helped increase customer base by word of mouth and also earn customer loyalty. Eventually, JetBlue has established a brand of its own with unique features and services.
6. Marketing strategy: JetBlue’s fun-filled and eye-catching marketing strategies that were supported equally by their practices were visible to and experienced by their customers, which helped improve their brand value.
1. Firm value and debt: JetBlue’s high debt makes ...Download file to see next pagesRead More
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