Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based on the information you can research the case study company, JetBlue Airways Corporation... analyze with an Executive Summary, and detailed Analysis responding to the

Based on the information you can research the case study company, JetBlue Airways Corporation... analyze with an Executive Summary, and detailed Analysis responding to the Questions (below), with Recommendations, Conclusions. The case objectives allow for the investigation of the challenges of choosing competitive strategies, and external and internal forces that affect this competitive strategy. Key concepts in your case responses should include discussions, evidence, and ideas surrounding the following: Mullin's model framework PESTEL Porter's 5-Forces VRIO analysis Choosing the right marketing channel; Website marketing, Social media and guerrilla marketing Cost Structure Key Resources and Key Activities Key Partners Pricing strategy Customer segmentation Case Synopsis - JetBlue Airways Corporation In March 2019, JetBlue's reputation was challenged by a lawsuit by two of its flight attendants claiming that they were raped by some JetBlue pilots and the airline did not take sufficient corrective actions as an organizational response. This crisis just added to JetBlue's other operating issues. JetBlue had been facing challenges that included rising fuel prices, troubling technical disruptions, and declining quality of the flying experience. Prior to that, for several years in a row, JetBlue had enjoyed low fuel prices that had helped increase the company's earnings, but the company experienced technical issues that caused booking problems and resulted in delays, as well as bad publicity. In order to cope with the likelihood of a rise in future fuel prices, JetBlue undertook massive cost reductions by investing in cabin restylingfor instance, adding more seats to JetBlue's A320 airplanes. However, the shrinking legroom that accompanied the cabin restyling was despised by passengers. This posed a problem for an airline that had once offered customers a captivating (as opposed to a captive) flying experience. In February 2015, Robin Hayes took charge of the company as its third chief executive. Hayes was the executive vice president of British Airways for the Americas before joining JetBlue in August 2008. Having worked for about 25 years and having extensive experience in the airline industry, Hayes was considered an optimal choice to become the third chief executive of JetBlue. Case Study: JetBlue Airways Corporation: Getting Over the "Blues"? To meet the challenges, CEO Robin Hayes orchestrated various initiatives, including wider fare options, enhanced Mint services, cabin restyling, new lines of JetBlue credit cards, and partnerships with other airlines. In spite of these efforts, JetBlue faced substantial headwinds, and its operating margins declined precipitously. In promoting Robin Hayes to be the airline's new CEO, JetBlue's board signaled its readiness to focus on investorfriendly changes. With news of his selection, the share price immediately soared by 5 percent. But JetBlue loyalists who loved the company for its customers-first policies were getting more and more uncomfortable. Would JetBlue soar into clearer skies, or would it sink into the "blues" again? JetBlue had been established with the goal of being a leading low-fare passenger airline that offered customers a differentiated product and high-quality customer service on point-to-point routes. JetBlue had a geographically diversified flight schedule that included both short-haul and long-haul routes. The mission of the company, according to founder David Neeleman, was "to bring humanity back to air travel." To stimulate demand, the airline focused on underserved markets and large metropolitan areas that had high average fares. JetBlue was in a niche positioned between the ultra-low-cost and full-service network air carriers. CEO Hayes said that the airline was committed to delivering "the best travel experience for our customers. . . . JetBlue's core mission to Inspire Humanity and its differentiated model of serving underserved customers remain unchanged," but the substantial challenge regarding a tradeoff between travel experience and profit margins remained. Would JetBlue be able to hold onto its core mission and still be able to make its stakeholders happy? Investors wondered if JetBlue really had a strong and clear strategic position and coherent business model to support it. At its start, "... the airline entrepreneur, Neeleman's start-up, and the concept for JetBlue, centered on giving passengers a good value for their money ..." Source: BusinessInsider.com (2022, Insider Inc.). Twenty years later, this entrepreneurial spirit and innovative approach is still changing the global airline industry identify and describe, if any, the Mullin's model framework for JetBlue, with evidence. Explain why the seven domains are or are not implemented and why? What are the components of JetBlue's competitive advantage? What are the merits and demerits of these competitive advantage components? (20) What are key market forces in the airline industry that affect JetBlue's choices? (20) What internal resources, cost structures, key resources and activities giving a competitive advantage? Is JetBlue's competitive advantage sustainable? (10) Exploring the Brand and Marketing for JetBlue, like web-based ticketing as a distribution channel. o What are the market/customer segments? (5) o Are the customer segments properly identified? (5) o Was an effective pricing model put in place? WHY? (5) Your response also looks for a focus on Organization & Critical Thinking Skills (15)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Management In The Hospitality Industry

Authors: Mike Olsen, Michael D Olsen

2nd Edition

0471292397, 9780471292395

More Books

Students also viewed these General Management questions

Question

1. Let a, b R, a Answered: 1 week ago

Answered: 1 week ago