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Jet Blue - Case Study

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JET BLUE - CASE STUDY

EBS 5103 STRATEGIC MANAGEMENT

Analyzing
Strategic Management
Cases

“JETBLUE AIRWAYS”

UFUK CANDAR FOYA
BAHÇEŞEHİR UNIVERSITY

Table of Contents INTRODUCTION 3 BRIEF SUMMARY 3 ENVIRONMENTAL ANALYSES: 4 VALUE CHAIN ANALYSIS: 10 FINANCIAL ANALYSIS: 13 SWOT ANALYSIS: 19 SPACE MATRIX: 21 TOWS MATRIX: 24 QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM): 25 CONCLUSION: 26

INTRODUCTION

Within case analysis assignment, the JetBlue case is analyzed strategically in this document to set answers for following basic questions: * To make a set of recommendations based on the analysis, * To describe exactly what need to be done for success, * To explain why the proposals will solve the problems, * To suggest how best to implement the proposed solution

After giving a brief summary regarding the case of JetBlue has and drawing a general picture of the company, several strategic analysis methods will be used to analysis JetBlue.

BRIEF SUMMARY

The economic downturn in the late 1990s and 9/11 terrorist attacks in 2001 have severe consequences on airline industry. The demand for air travel dropped and led to decrease in flights and revenue. The security costs increased. Airlines significantly reduced capacities. As a result low-cost strategies with new route services became important. Rebounding of economy by the end of year 2003, the demand for business and leisure travel was expected to grow in low-cost competition marker after flight reductions and fewer routes.

JetBlue started operations in 2000 and committed to keeping its costs low by operating a single-type aircraft fleet comprising Airbus A320 which has more seats compared to Boeing 737, cheaper to maintain and more fuel-efficient. As a result, the maintenance and training costs were lower with increased manpower utilization.

JetBlue…...

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