1. Despite its initial success, why was JetBlue unable to sustain a blue ocean strategy? 2. The...

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1. Despite its initial success, why was JetBlue unable to sustain a blue ocean strategy?

2. The Wall Street Journal asked JetBlue’s chief marketing officer, Marty St. George, “What is the biggest marketing challenge JetBlue faces?” His response: “We are flying in a space where our competitors are moving toward commoditization. We have taken a position that air travel is not a commodity but a services business. We want to stand out, but it’s hard to break through to customers with that message.”

2a. Given St. George’s statement, which strategic position is JetBlue trying to accomplish: differentiator, cost leader, or blue ocean strategy? Explain.

2b. Which strategic moves has the team around CEO Robin Hayes put in place, and why? Explain whether they focus on value creation, operating costs, or both simultaneously. Do these moves correspond to St. George’s understanding of JetBlue’s strategic position? Why or why not? Explain.

3. Why is JetBlue experiencing a competitive disadvantage? What recommendations would you offer to JetBlue to strengthen its strategic profile? Be specific.

4. JetBlue CEO Robin Hayes is contemplating adding international routes, connecting the U.S. East Coast to more European destinations. Would this additional international expansion put more pressure on JetBlue’s current business strategy? Or would this international expansion require a shift in JetBlue’s strategic profile? Why or why not? If a strategic repositioning is needed, in which direction should JetBlue pivot? Explain

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Strategic Management

ISBN: 9781265951504

6th Edition

Authors: Frank Rothaermel

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