JetBlue Airways Corporation Strategic Analysis

JetBlue is one of the leading low-cost carriers in the United States, with over 90 destinations. One main factor that makes this airline stand out is its affordability and passionate connection with its customers. However, JetBlue’s efforts do not excuse the company from the impacts of the highly competitive airline industry in the United States. Thus, the company has had to implement several strategies to maintain a competitive edge.

One of the main strategies the company has applied is cost leadership. According to Porter, cost leadership is one of the four generic strategies (Huggins & Izushi, 2011). It is a strategy that involves setting prices that will generally be viewed as more competitive in the market. Companies that often use cost leadership strategies set lower prices than the rest of the businesses in the industry. Therefore, customers seek their services to save their costs. JetBlue has been profitable in an industry dominated by large airlines because of its cost leadership.

Another strategy that this company has applied is concentric diversification. Concentric diversification is a strategy of diversifying a business’s products by introducing new but related products to the market (David & David, 2017). JetBlue has been introducing ancillary amenities to add to its revenue from passenger fares. The company’s revenue from ancillary products increased by 11% in 2014 to $745 million (David & David, 2017). This diversification has been a good strategy for increasing revenue streams, thus, giving the company more money to invest in the development of the company. The ancillary services also help to improve customers’ experiences.

References

David, F. R., & David, F. R. (2017). Strategic management: A competitive advantage approach, concepts, and cases. Pearson.

Huggins, R., & Izushi, H. (Eds.). (2011). Competition, competitive advantage, and clusters: The ideas of Michael Porter. Oxford University Press

ORDER A PLAGIARISM-FREE PAPER HERE

We’ll write everything from scratch

[u05d1] Unit 05 Discussion 1

JetBlue Airways Corporation Strategic Analysis

The JetBlue Airways Corporation – 2015 case study provides insight into how this company has used innovation, name recognition, and a passionate connection to its customers to maintain its competitive edge.

JetBlue Airways Corporation Strategic Analysis

Based on the case study, make a list of which of the sixteen strategies or Porter’s generic strategies you observe JetBlue using. Why did you include these strategies? Post your list and a brief summary of why you chose the strategies you did in this discussion. Revisit the courseroom after your initial posting and respond to the postings of at least two other learners. Do you agree with their assessment? Why or why not?

Resources

• Discussion Participation Scoring Guide.

UNDERGRADUATE DISCUSSION PARTICIPATION SCORING GUIDE

• Due Date:weekly
  Percentage of Course Grade: 30%.

JetBlue Airways Corporation

Unit 5 – Action Strategies