Group Case Study

1455 words - 6 pages

6. SWOT-
a. Strengths- The main strengths that JetBlue relies on are their superior, high-quality customer service and their ability to offer lower fares, averaging 40% lower than most other airlines. Offering flexible scheduling and an at-home work option has proven to have many benefits. Reduced operating costs through minimizing the need for large operating facilities and equipment, increasing efficiency and low turnover rates in a typically high turnover field all contribute to a high level of employee satisfaction. This translates to fewer errors and a high level of customer satisfaction. JetBlue’s decision to maintain their lack of baggage fees, offering complementary snacks and beverages as well as their array of customer loyalty programs; TrueBlue, Rocket Miles and credit card options, add to the success of their superior customer service ratings.
By creatively planning operations such as only ordering a single type of aircraft, which drastically reduced training costs from pilots to maintenance crews, they were able to invest in more luxurious aircraft including features such as leather seats, uncommon legroom and satellite TV at every seat. The acquisition of LiveTV, the operating company of their in-flight satellite television is an additional strength. JetBlue’s belief in word-of-mouth advertising saves millions of dollars which other companies generally spend, allows them to pass on this savings to their customers. The company’s employee satisfaction level has helped them to maintain a non-unionized workforce, which also helps them keep ticket prices low. These factors which allow the company to maintain high standards at reduced costs quickly built JetBlue’s strong brand recognition and customer base.
b. Weaknesses- Perhaps the biggest internal weakness Jet Blue suffers from is its rapid expansion. This did not initially appear to be a weakness however, even before the ice storm in February of 2007, strains in their operating system began to show. This storm made it quite clear that the communication and reservation system were seriously flawed. The inability for at-home personnel, stranded flight attendants and pilots to communicate with management and to reschedule flights led to an epic disaster for the airline. Lack of contingency plans and cross-training added to the chaos of the situation.
c. Opportunities- There is several opportunities available for Jet Blue to consider. One such opportunity is to partner with a major airline, coordinating flights so that customers may travel to destinations where Jet Blue does not currently operate. This would improve their ability to compete against other LCC airlines. The lack of a more aggressive marketing campaign offers another opportunity. Jet Blue could take advantage of this opportunity by working with a flight comparison website like Orbitz or Kayak to launch a marketing campaign which promotes the low ticket prices of Jet Blue, while reducing costs associated with the ads....

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