Analysis of Case JetBlue Airline's Success Story

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JetBlue's survival and success gained immense popularity by virtue of being a firm that was operating in an industry that was losing money rapidly. Airlines industry in the United States incurred major losses after September 11 and was actually encountering financial crisis even before the incident.


For one, all airlines were facing serious financial crunch with customers losing confidence in security arrangements on airlines and government urging airlines to invest more on the same.
With additional costs being incurred on safety measures, prices per ticket went up and this ultimately led to fewer people choosing US airlines. The only way JetBlue could succeed was by discovering and developing a business model that would promote cost efficiency and effectiveness. Luring customers with lower prices is always easy but offering them quality service and making money at the same time are gargantuan tasks. The firm thus planned to use its resources efficiently by transferring costs from unproductive services to more productive once and hence creating value. Value led to volume and this led to lower fares and ultimate success. The few core areas that JetBlue targeted were cost, operations, technology, marketing and human resource.
JetBlue knew that cutting costs is not always the best practice unless it is matched by higher quality as well. It is easier to cut costs and offer sloppy service but if a firm wants to succeed in the long run and create a good image in the mind of the passengers, it is important to reduce costs by investing in more productive services. The airlines refused to serve meals on any of its flights. ...
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