Case Study Assignment of Jetblue

Case Study Assignment of Jet Blue

History:-

Jet blue airways corporation stylized as Jet Blue is an American Airline, and the 6th largest airline in the United State. The company is headquartered in the long island city neighbourhood of the New York city borough of Queens, with its main base  at John F.Kennedy International Airport. Robin Hayes President and CEO Joel Pelevson, chairman Dvid Neeleman are the founder of Jet Blue.

In 2007 Valentine’s Day, a winter storm in New York left hundreds of jet blue passenger’s stranded in terminals and in plans on the tarmac. The flight hundreds of jet blue’s disruption caused jet blue to cancel more than one thousand in a six day period. This severely damages the new company’s reputation and cost the airline over millions in estimated revenue and millions in flights vouchers. This was due to multiple operational failures compounded the crisis.  

SWOT Analysis

Strength:-

Jet Blue is well known in the airline industry for its strong customer services and innovation product in 2014, market the 10th consecutive year that the company was named the highest in Airline.

“Customer satisfaction among low cost carriers” it also recognized by airline rating as the best low cost airline. The Americans receiving 7/7 stars of safety and 5/5 stars for its product offering in the second consecutive year.

Weakness:-

 Jet blue largest expense is fuel. Historically fuel costs have been subject to wide price fluctuations while the company does enter into a variety of derivative instrument to help these expenses. They do not fully protect the company against higher prices. Jet blue may not be able to adequately increase taxes to offset higher fuel cost.

Opportunities:-

The company plans to grow its high value geography in the coming quarters. Over the past few years, the company was focused in business travelers in borbn as well as travelers to the carribbean and latin America. It is now focusing on expanding its presence in Fort Lauderdate-Hollywood. The company also expended its network this year opening up destinations to Cleveland and Graned. There are potential long-term opportunities.

Threats:-

Jet blue faces a very competitive and domestic airline industry. The industry is characterized by the profit margins, high fixed costs and an increasingly concentrated field of airline companies. Most jet blues primary competitor’s including Southwest Airline (LUV) and Delta Airline (DAL) are large and have greater financial resources and name recognition.

Question 1:

Give an example of customer needs, wants and demands, that jet blue customers demonstrate, differentiation these three concepts. What are the implications of each for JET BLUE?

Answer:

Needs:

 Jet blue has configured 3 more inches of legroom in the seats for the comfort of customer.

Wants: 

As per customer wants Jet blue offered another perk that customers enjoyed which is food and beverages. Instead of meal they provide beverages and snakes of different types as per customers own wants, there were juices, snacks, salty snacks were available.

Demand: 

They provide customer services unlikely another airline. Taking care of customer’s starts from the first encounter with the Jet blue’s representative on call center.

They provide High security also the leisure to avail 10 inches legroom seating with little bit extra cost. Also customer can purchase any TV show after paying only 6 bucks extra. To provide comfort zone to customer after analyzing competitive environment.

Question 2:

Describe in details all the facets of jet blue product. What is being exchanged in Jet blue transaction?