Bus 599

Assignment 1

Dr. Elile Awa

CRAFTING AND EXECUTING STRATEGY

Submitted by: John-Miguel Onkony Winter Quarter 2011

Strayer University

Introduction

This document presents an analysis of one case presented in the textbook (Thompson, A.A., Strickland, A.J., & Gamble, J.E. (2010). Crafting and executing strategy: The quest for competitive advantage: Concepts and cases: 2009 custom edition (17th ed.). New York: McGraw-Hill-Irwin.), entitled “JetBlue: A Cadre of New Managers Takes Control”. The case describes the reasons for the success of JetBlue, a three-year-old, low-cost airline, operating in the USA.

Trends in the U.S. Airline Industry and their Impact on Company’s Strategy

Since 2001, the US airline industry has faced an unprecedented set of challenges. Following the terrorist attacks of September 11, 2001, the airline industry reported tremendous losses and several of the largest US airlines went into bankruptcy. To recover from this situation and try to remain financially viable, many measures have been taken by airlines. As a result, the airline industry has been a very dynamic industry over the last few years. U.S. legacy carriers said international air travel boosted sales in March but that they are losing ground at home to low-cost airlines, a trend that is pushing them into the role of what the industry calls trunk carriers.