- April 18, 2020
Strategy Plan, Jet Blue
StrategyPlan, Jet Blue
JetBlueis a passenger carrier organization that became incorporated in 1998.The entity offers air transportation services across the UnitedStates, Latin America, and the Caribbean. The organization operatesdifferent types of aircraft, including Airbus A320, Airbus A321, andEmbraer E190 (Hill,2013).The company also provides premium transcontinental product referredto as Mint. The entity offers three branded fares, which are blueFlex, Blue Plus, and Blue. The organization is a point-to-pointcarrier, with its routes touching around one of its six focus citiessuch as Boston, New York, Orlando, San Juan, and Long Beach. Sinceits establishment, the JetBlue Company has grown enormously. Within ashort period, the airline has become the fifth largest carrier in theUnited States based on available seat miles. The company has attainedsuccess in its operations since its inception due to the strategythat it uses. This report will discuss the strategy used by JetBluein introducing its services in the market.
Inentering the market, JetBlue started as a low price carrier. Thestrategy that it used in entering the market entails low-costapproach. This technique entails the use of pricing in competing withother entities. In applying this strategy, the company ensured thatit priced its services at a rate that is lower compared to theoffering of other firms in the market. The entity still uses low-coststrategy in competing with its rivals. Being a domestically basedlow-cost carrier, the company has cost advantage over its peers(Flouris & Oswald, 2016). The company’s low-cost strategy hasenabled it to enter the territory of the larger airlines and produceindustry leading margin. Indeed, the company has managed to gainmargins that are above the industry’s average. This is anindication that the performance of the company is exceedinglyremarkable due to the low-cost structure. The low-cost approach usedby the company has an advantage since it attracts customers, makingthem to stick to the airline. Since clients always desire to pay lessfor services, they are likely to be attracted to the carrier.
Thecompany was in a position to enter the market using the low-coststrategy due to different approaches that it used in reducing itsoperations cost. One of the initiatives that it utilized in ensuringsuccess in the low-cost strategy was investing in aircraft that havethe ability of using fuel efficiently (Flouris & Oswald, 2016).The efficient use of fuel ensured that the company saved resourcesthat mitigated the operating cost. Another tactic that the companyused in making sure that its operating expenditure remained lowentails reducing the cost of repairing its aircraft (Dessler &Phillips, 2012). The company ensured that it used aircraft that arein good condition so as to reduce the cost of repairing them.
Inconclusion, JetBlue is a passenger carrier organization that becameincorporated in 1998. The entity offers air transportation servicesacross the United States, Latin America, and the Caribbean. Theorganization operates different types of aircraft, including AirbusA320, Airbus A321, and Embraer E190. In introducing its services tothe market, the company utilized low-cost strategy. This was madepossible by investing in aircraft that had the ability of using fuelefficiently. The company has attained success in its operations sinceits inception due to the strategy that it applied in entering themarket.
Dessler,G. & Phillips, J. (2012). Managingnow!Boston: Houghton Mifflin Co.
Flouris,G.T. & Oswald, L.S. (2016). Designingand Executing Strategy in Aviation Management.London: Routledge.
Hill,M. E. (2013). Marketingstrategy: The thinking involved.Thousand Oaks, Calif: SAGE Publications.