presentation 1

A Mini Case Presentation

By: Johnathan Peter, Yu Zhang, Bei Zhang and Neha

Strategic Management

Group J- 4 Sep 2009

The Australian National University

Dr. Ananda Jayawardana

Overview

Founded in 2000 by CEO, David Neeleman

Domestic US passenger

service

4.2% market share

Board of Directors responded by firing

executive management team

Strategic Version??

A company's Strategic Vision is top management views about the company's direction and their future product/customer/market/technology focus

Create an airline where "passengers would be able

to save money while they munched on gourmet

snacks, sat in leather seats, and watched television"

Product

Customer

Market

Technology

• Should JetBlue's strategic vision be revised now that the company has new leadership?

Reasons to change youre strategic vision includes:

• change in management

• change in enviroment

• when the current vision does not appear to be working

Functional area strategies

JetBlue's HRM

Practices

Hiring

Blue Review recruitment team

the Aviation University Gateway

Training

Mike Barger

leadership development training

• paying

• known for paying emploees lower base salaries than its competitors

• health coverage profit sharing 401(k) retirement plans

Some KSFs of airline industry

-Attractiveness of airline’s service

-A highly talented workforce

-Productivity, in airline capacity per employee and morale

-Highly effective promotional expenditures

-Strong direct sales capabilities

-A well known and well-respected brand name

-Airplane utilization in hours per day

-High load factor relative to the industry average

-Quality control know-how

-Product innovation capabilities

-Good financial Management

-Overall low costs so as to meet customers’ expectations of low prices

How well do JetBlue’s strengths &

capabilities match the industry KSFs ?

Test for JetBlue’s ‘Resource strength’

JetBlue’s Strengths and competitive capabilities

*Courteous, personalized customer service

*Highly talented workforce

*User friendly website (good ecommerce capabilities)

*Ease of ticketing

*Good quality control know-how

*Well respected brand name

*Good management of its fleet

*Overall low costs so as to meet customers’

expectations of low prices

*Smart financial management also while the

airline industry as a whole was facing difficulties

(2008 & beyond)

fairly well, with a hope to do much better

in future.

As stated by the current CEO David Barger

“JetBlue is well positioned with a strong route

network, a flexible fleet order book, solid

liquidity, the best crew members in the

industry, and a management team that

understands and has and will continue to

respond to the challenges that lie ahead. We

are just being smart about it at the same time.”

Is the resource really competitively

valuable?

Is the resource strength rare-is it

something the rival lacks?

Is the resource strength hard to copy?

Can the resource strength be trumped by

substitute resource strengths and

competitive capabilities?

Few recommendations for JetBlue

-Increase its profit margins

-JetBlue should encourage international airline partnerships

-Improve its fuel hedge opportunities