JetBlue’s functional area strategies are consistent with its overall strategic approach. JetBlue’s vision focuses on customer service and low cost. These functional area strategies are developed at different areas such as human resources, operation management and financial.
In the area of human resources JetBlue has developed many innovative practices with focus in to develop, maintain and provide human capital to be prepared for the future. JetBlue has established the Aviation University Gateway, a continue training for staff, a leadership development training, health coverage, retirement plans. In addition, JetBlue recognizes that it has lower base salaries than its competitors, but it offers as compensation a coverage profit sharing.
Since JetBlue was established, it adopted the latest technologies. The company’s success is the result of understanding customers’ priorities and gaining great efficiencies through automating whatever IT can automate. JetBlue managed to gain strategic advantage by reducing cost and therefore reducing the price to the customer; and improving a service, especially in terms of on-time departures and arrivals. In addition, JetBlue management has developed many policies, practices and procedures as a massive automation, intensive use of efficient approach.
JetBlue has obtained a great benefit by automating services. Because all tickets are electronic, there is no paper handling or expense. JetBlue encourages customers to purchase their tickets online, and more than 79 percent of them do so, saving the company much labour. Its maintenance workers use a maintenance information system logs all airplane parts and their time cycles. The system reduces manual tracking costs. The automation system allows JetBlue plans each flight to maximize the number of seats occupied. It reduces planning costs and makes operations more efficient.
JetBlue has developed an efficient operation scheme. JetBlue was the first airline to establish paperless cockpits. All JetBlue flight manuals are centrally maintained, and the pilots have been provided with laptop computers that they carry into the cockpit. This allows to JetBlue to cuts 15 to 20 minutes from pre-flight preparations for every flight and to save cost in routine operations.
The use of IT technologies also placed the airline at the top of the list for on-schedule departures and arrivals, a service that is very important, especially to business travelers. Usually, checking baggage takes 45 seconds. When passengers arrive at their destination, they do not have to wait for their suitcases. Their electronically tagged suitcases wait for them at the baggage claim area.
By: Sandy
3.What are the factors driving change in the airline industry? How are they likely to impact the future attractiveness of the industry?
Economic Recession
First, jet fuel prices soaring lead to airlines operating cost will increase that airlines must increase fares and fuel surcharge.
Second, lower income levels and higher fares lead to loss customers.
Jet fuel prices’ soaring is most important reason of airlines loss money.
JetBlue use two types of aircraft are A320 and E190 are more fuel efficient and less costly to operate than other airlines and airplanes. It is their key point of keep low price.
Customer satisfaction
- Service
Expand market to the places where lower passenger flow, give customers more choice of different airlines also low prices.
They have snakes on the airplane.
- On time
Quick turnaround times, JetBlue no meals were served and no hired cleaner，flight attendants clean the plane at any time. Thereby reduce weight and save time to keep lower price.
Innovation
JetBlue was one of the first companies to used information technology and paperless to keep costs down and raise planes to use efficiency.
Open skies software to handle electronic ticketing, Internet bookings.
More capacious and comfortable seats, in-flight entertainment and first airline can use wifi on the airplane.
Employees work at home with company-supplied computers and second telephone lines to reduce rent office costs and improve they work efficiency. Moreover it can set up a good relationship between employees and customers.
JetBlue can reservation tickets.
When passengers must choose by planes to travel, most people first consider is lower fare and then is higher quality. So, JetBlue has a good development potential.
By: Lolyn
4. What are the key success factors in the airline industry? How well do JetBlue’s resource strengths and competitive capabilities match these industry success factors?
1. Low ticket prices：A popular price, making the most of the customers can accept. At the same time, it can compete with the big airlines.
2. Rapid update information：Use the Internet, quickly update information. Customers can through the Internet instant, clearly understand the flight, airline, etc. Airlines Company help customers in the online booking and payment directly, save a lot of human resources.
3. Airport location：The location of the airport is important. Through the market analysis, choose suitable location, is the key to success. The airport in relation to passenger, the flight times, this is the source of profits.
4. High service standard：Provide high quality customers service. It will influence customer will choose the airways again or not, and customers will introduce the airways to their friends
5. Low error rate，risk early warning mechanism and coping strategy：To fast traffic tools, rapid, on time is necessary. The company should have perfect equipment, take the weather to influence the flight reduce.
6. Safely：Safely, for everyone is the most important. Every customer all hope themselves have a happy, safely journey.
JetBlue’s most important strategy was low-cost and high service standard, according to this, this organization was more focus on the cost and product.
Airbus A320 but not Boeing 737：Though being a startup airline, JetBlue did not do what others do- using old, cheap planes. On the contrary, they use Airbus A320. Neeleman calculated that although the Airbus cost more initially, Boeing 737 is much more popular, it was easier on the maintenance side and was also more fuel-efficient.
Light Snacks instead of Meal：JetBlue’s decision of not serving meals like other airlines regardless the distance or duration is a wise one. They choose to serve snacks like chips, cookies, and crackers instead. Just as Neeleman calculated, a normal airline meal cost about $4 per passenger, while snacks cost only 12-14 cents.
Leather Seats but not Cloth Ones： Though leather seats cost twice as much as cloth ones, they last twice as long. At the same time, leather furnishings are much more comfortable thus improve customer value for they are much wider and offer more leg room. The leather seats are items of a high initial cost but providing a greater advantage in the long run, thus introducing in the leather seats avoids bringing down the quality of service but makes it better.
Personal TV sets instead of One Shared Screen ：Personal TVs provided JetBlue with a good point for differentiation. This personalized service shows the customer-focus of the company and attracts more and more potential customers.
By: Lee
5. What recommendations would you make to help speed JetBlue’s turnaround and revive its growth in revenues and earnings?
1. Keep low price with high quality
(keep low price with high quality is a good way to make more customers----customers like to compare with other company, and they always choose the cheap one, so low price is useful. And high price with high quality and low price with high quality, lots of people will choose latter)
2. All of the plane full of people, no empty seat
(by discounting to sale the ticket that the remaining)
3. Be on time
(it not only better for customer but also efficiency)
4.Contact in every department
(the contact in every department must be better than before.)
5. To reduce resources and get less maintain
(1. find the best flight plan 2.use the new plane )
6. Keep the point that customer is god
(by this way we can keep the old customer and the same time we will have more new customer from old customer's evaluate)
7. Improve the customer bill of rights
(without confidence nobody will believe you, so we must do it )
Of course to do that will cost a lot of money, but this is a good moment to win public support. Nobody is perfect. This is very important. In this case will not only let customer know our promise but also know our mistaken attitude.
Of this problem we can find some mistake we make. And we also can show our attitude. So if you deal with it well, it doesn't a bad thing for this company. And it is also a huge space for the company to improve in the future.
By:Charlie
