Jet Blue

Strategy Final: Is JetBlues strategy conducive to sustaining profitability? team up: Grant Carter William DiSciullo Andrea Kalmans Professor McAfee April 9, 2002 1 Introduction In the April 1st, 2002 edition of Barrons, a tag line in the Marketweek pillar reads, air lanes and other money-losing companies. 1 This tag line reflects the intense contention and the massive pecuniary losses undergone in the air hose tenacity in the erstwhile(prenominal) few months due to the economic recession and the 9/11 terrorists attacks. Amidst this airline industry malaise, however, JetBlue Airlines (JetBlue) launched service in February 2000 and generated everywhere $41 million in profits in 2001.2 In this report, we look the question, Is JetBlues strategy conducive to sustaining profitability? The dish out is a resounding Yes. At the one thousand hindquarters level, we deal that even in the unattractive airline industry in which companies try to differentiate on qualities other than terms -- still in the end often compete on price -- JetBlue has a unique formula for success. It competes head-to-head with the majors, peculiarly southwest Airlines (Southwest), on price, cost structure, features, and customer satisfaction.

However, the alliance has cut a niche in which a endure and allow live strategy should prevail. Indeed, a rival attempting to impoverish JetBlue whitethorn well cause more harm to itself than to its target. Airline perseverance Overview Background At one time the airline industry resembled the utility industry to the extent that regulators determined what firms could and could not d o. In the 1970s, a time of runaway inflation! , and rising unemployment, many a(prenominal) concord that something had to change. In 1978 Congress passed the Airline Deregulation Act, which facilitated the opening of natural firms and freed them to charge some(prenominal) falls they wanted and fly whatever routes they analogousd. 3 Many new entrants materialized, including new low fare airlines like Southwest, and cutthroat competition has...If you want to get a broad(a) essay, order it on our website: BestEssayCheap.com

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