jet blue syndicate presentation
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L/O/G/O
Case Study:
JetBlue Airways:Starting From Scratch
Case Study:
JetBlue Airways:Starting From Scratch
Syndicate 5Muhammad Ridwan – 29112555
Machadi Dhana – 29112303
Mahammad Khadafi – 29112324
Pedro Putu Wirya – 29112565
Seto Kusparyanti – 29112306
Yuliani Dewi Risanti – 29112321
Rahdianto Maulana – 29112554
JetBlue: BackgroundJetBlue: Background
• Established in 1998 and started service in 2000
• Goal: to establish itself as a leading low-fare, low-cost passenger airline by offering high quality cutomer service and differentiated products
• Focus on underserved markets
JetBlue: BackgroundJetBlue: Background
• Initial capital: $130 million from several investors.• Initial operations: 2 planes
• Top management levels consisted of talented and reputable veterans, who would like to "create something new, unencumbered and fun.”
• 0.6 complaints per 100,000 passengers compared to an average of 2.99 for competitors
Case FormulationCase Formulation
• JetBlue was getting bigger everyday:– The fleet grew from 2 to 10 within 11 months– Employees grew from 10 to almost 1000, with
additional 100 for each new plane– In 2003, JetBlue shall had 40 planes and 5000
employees
• How did JetBlue achieve rapid growth while building a value-based, high commitment organizational culture?
JetBlue ProfileJetBlue Profile
• Product: flight service
• Primary Hub: JFK International Airport – New York City
• Aircraft: Airbus 320
• Working environment: non-union
JetBlue ProfileJetBlue Profile
Business Strategy:• Aggresive growth strategy, one new plane
was bought every five weeks
• Low cost carrier approcah
JetBlue ProfileJetBlue Profile
Functional Strategy:• Marketing strategy:
– Segmentation: medium - low– Targeting: people who previously would not
go by plane – Positioning: low cost carrier– Customer friendly
JetBlue ProfileJetBlue Profile
Functional Strategy:• Operation strategy:
– Aircraft model, Airbus 320:• Burns less fuel• Better and wider cabin technology• Each seat get an extra inch, relative to Boeing 737
– Paperless– Single flight service– Full entertainment flight service
JetBlue ProfileJetBlue Profile
Functional Strategy:• Human capital strategy:
– Customized employment package – Selecting the right people based on corporate
value– Keep small company feeling inside the
organization• 5 values: safety, caring, integrity, fun, passion• No labor union
Industry CompetitivenessIndustry Competitiveness
• For low fare flight services, JetBlue face competitions with:– Southwest Airlines; biggest competitors– America West– Midwest Express– AirTran– Midway– Frontier
Case AnalysisCase Analysis
JetBluePerformance
JetBluePerformance
OrganizationalCapability
OrganizationalCapability
OrganizationalCulture
OrganizationalCulture
Human capital management of
JetBlue must develop its employees to
create organizational culture, alligning with its business strategy
BusinessStrategy
BusinessStrategy
SafetyCaring
IntegrityFun
Passion
Aggressive growth
strategy
Case AnalysisCase Analysis
CO
Safety
CSOIU
Caring
OAOC
Integrity
SCT
Fun
ACHTW
Passion
Core competence integrated in JetBlue’s values
ConclusionConclusion
• The key success of JetBlue was the focus to shared corporate values, which drove all activities and were the basis for the development of the organization.
• To sustain corporate values, core competence integrated in the values must be defined and maintained.
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Thank You!Thank You!