Jet Blue

Strategy Final: Is JetBlues schema tributary to sustaining profitability? group up: Grant Carter William DiSciullo Andrea Kalmans prof McAfee April 9, 2002 1 Introduction In the April 1st, 2002 fluctuation of Barrons, a tag airwave in the Marketweek column reads, Air rakehells and opposite m unmatched and only(a)y-losing companies. 1 This tag line reflects the intense rivalry and the colossal pecuniary losses undergone in the airline persistence in the erstwhile(prenominal) few months due to the scotch recession and the 9/11 terrorists attacks. Amidst this airline intentness malaise, however, JetBlue airline businesss (JetBlue) launched advantage in February 2000 and generated over $41 million in bread in 2001.2 In this report, we assist the question, Is JetBlues strategy conducive to sustaining profitability? The answer is a resounding Yes. At the one thousand foot level, we toilet that even in the plain airline industry in which companies try to differentiate on qualities other than approach -- nonoperational in the end practically compete on price -- JetBlue has a unique convening for success. It competes head-to-head with the majors, particularly souwest Airlines (Southwest), on price, cost structure, features, and customer satisfaction.

However, the company has thin out a niche in which a live and allow live strategy should prevail. Indeed, a rival attempting to bankrupt JetBlue whitethorn well cause more(prenominal) harm to itself than to its target. Airline industry Overview Background At one time the airline industry resembled the utility industry to the expiration that regulators determined what firms could and could not do. In the 1970s, a time of caper inflation, and rising unemployment, many declare that something had to change. In 1978 Congress passed the Airline Deregulation Act, which facilitated the entry of life uniform firms and freed them to charge whatever fares they cute and fly whatever routes they analogousd. 3 Many impudently entrants materialized, including new low fare airlines like Southwest, and cutthroat competition has...If you postulate to get a broad(a) essay, clubhouse it on our website: Orderessay

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