Jetblue Airways: Starting from Scratch - Case Analysis
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Show MoreExecutive Summary
JetBlue Airways, the latest entrant in the airlines industry has gone through the initial stages (entrepreneurial and collectivity) of the organizational life cycle rapidly under the successful leadership of David Neelman. JetBlue Airways is currently in the formalization stage of the life cycle where in it needs to create procedures and control systems to effectively manage its growth. Also as it proceeds to grow further to reach the elaboration stage, JetBlue needs to continue to align itself with the environment in order to maintain its sustained growth.
JetBlue: Entrepreneurial Stage
David Neelman realized his vision of creating an airlines company that is focused on customer service by starting JetBlue. During…show more content…
These customized packages gave JetBlue an avenue to satisfy the employees thus enabling them to work in an environment filled with fun and passion. It also helped create a positive environment to keep the union out of the company thus enabling them to provide low cost service.
In addition, the vision of using technology to provide low cost service made them use computer technology for all the pre and post flight work done by the pilots thus avoiding paperwork and reducing the time to respond. Choice of Airbus A320 also helped them in achieving their vision because A320 was highly computerized and helped them to use technology for maintenance of the airplanes. Neelman wanted to differentiate JetBlue service from other airlines. The management team understood the needs of Differentiation Strategy and designed the organization to be learning and flexible.
JetBlue: Future Directions
The following diagram depicts JetBlue at the current stage and how effectively it has managed the growth so far. It also points out the future directions needed to effectively manage the further growth.
As JetBlue continues to grow, it is in the midst of transitioning from the collectivity stage to the formalization stage. This stage requires putting in place policies and procedures to improve coordination among the growing number of employees. Horizontal Linkage mechanisms need to be put in place through the use of information system, task
Show MoreIndividual Case Analysis
JetBlue Headquarters, Forest Hills, New York.
JetBlue Airways, an American low-cost airline, headquartered in Forest Hills, New York started flying out of John F. Kennedy Airport in February of 2000.JetBlue started by following Southwest’s approach of offering low-cost travel, setting themselves apart from their competitor’s through the amenities they offer like in-flight entertainment, flat-screen TV’s on each seat, live digital satellite radio for all passengers, one-way tickets and no weekend stay over requirements to receive their cheaper fares.
The case of JetBlue illustrates JetBlue’s plan to succeed, and be among the few airlines that have had longevity. Dave…show more content…
airlines’ coach cabin. This means whether you are traveling for business or pleasure, that extra legroom will help to make your travel arrangements as good as the destination itself, Neeleman said. The article also went on state that in their then six years of operation JetBlue Airways has focused on creating a new airline category – an airline that offers value, service and style. In Calling JetBlue by Chuck Salter, Salter states that JetBlue’s recipe for customer service success combines work-at-home moms, flexible schedules, employee education and individual initiative. Also according to Salter, Neeleman pioneered the arrangement at his first airline Morris Air, and it worked so well that he replicated it at JetBlue. This again is because equipping agents with a home computer eliminates the need for a large expensive call center. This also results in a boost to efficiency and job retention, in an industry with high turnover rates.
Though JetBlue has had many positive impacts on the industry, trouble was on the horizon; one problem was that the company planned on increasing their crew from a mere 6,500 to 25,000 and planes from 73 to 290 within a five-year period, whereas it took Southwest 27 years to obtain 280 aircrafts while remaining profitable. As the case states with grow of this magnitude serious issues could result for JetBlue, with the addition of nearly 20,000 new employees, in just five years, analysts believes that this growth