Strategic Management Model for JetBlue Airways

Introduction

Civil aviation is one of the most dynamic segments of the world economy . The international industry has become an interesting amalgam of established network and regional carriers , with a slew of new low cost operators . Jet Blue Airways Corporation (Jet Blue hereafter ) is a relatively new entrant in the U .S . regional air travel market . This NASDAQ listed company has made a quick mark in a mature market with a highly competitive environment . Jet Blue has made significant investments to double its seat capacity in the next 5 years . This

document examines facets of the company 's strategy and its functional operations , with conclusions about its future prospects

External Environment

The major opportunity which Jet Blue seeks to exploit in its external environment relates to unfulfilled passenger needs in some under-served destinations , as well as metro areas which command relatively high fares (Form 10 K , 2005 . Deregulation of civil aviation (Delfmann , 2005 ) has spawned the emergence of low cost carriers such as Jet Blue . The low cost carrier segment growth (Delfmann , 2005 ) is an important niche opportunity , which continues to take shares away from traditional network carriers . However , these new entrants such as Jet Blue need to excel in labor cost management in to succeed (Delfmann , 2005 . All airlines remain vulnerable to escalations in fuel costs , so it is important to raise general seat prices in concert in to remain viable in financial terms

It is a major challenge for companies such as Jet Blue to hold on to the cost edge , because the external environment for civil aviation in the United States is highly competitive (Form 10 K , 2005 . Powerful alliances between large and established competitors can take back market shares that carriers such as Jet Blue may forge . The business is highly vulnerable to high fuel prices (Form 10 K , 2005 . Congestion in airports threatens on-time performance and the critical aircraft utilization factor (Form 10 K , 2005

Overall , the external environment does present a distinct opportunity for low cost carriers such as Jet Blue , but leaves them vulnerable to competitive pressures , input costs and infrastructure threats as well Successful companies have to be highly flexible and professional managed to exploit opportunities , while avoiding serious risks at the same time The Jet Blue market entry has come at a time when a number of established competitors have become financially unviable

Objectives and Company Mission

Jet Blue has a concerted and well devised approach in response to the environment in which it operates . The company management has carved a creative niche within the overall market place . The Mission is To bring humanity back to air travel (About Jet Blue , 2007 . This aim sets it apart from other low cost carriers . The company seeks to fill gaps in high fare metros , underserved areas , and the space between low cost fares and full service airlines (Form 10 K , 2005 . The management has done its homework well to locate new potentials in a market which appears to be overly competitive...