Question

Q3. Critically discuss the components of JetBlue’s competitive advantage, and what are the merits and demerits of these components? (30 marks- 400 words)

Answer 1

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Critically discuss the components of JetBlue’s competitive advantage, and what are the merits and demerits of these components?

The strategic advantage of JetBlue consists of cost control and differentiation approaches. The achievement of JetBlue cost management goes hand in hand with its operational approach. Some examples of successful activity by JetBlue are fresh airplanes which long-term decrease fuel and maintenance prices and large planes which produce additional income per airplane as there are more customers. Furthermore, JetBlue offers no inflight meals that would obviously reduce costs. Finally, JetBlue has all the labour of its reservation staff from the convenience of their homes, which in turn condenses the overhead costs of the organization.

The defining feature of JetBlue's competitive advantage is accomplished by multiple factors. Three of these things are the welcome qualities for their customers, such as direct television on each cabin, a reliable logo and the main rivalry against other airlines in the coach segment. JetBlue offers its customers low cost service with desirable and different features from its rivals.

The organization is proud to focus on and use high-tech technologies to work effectively. This enables JetBlue to offer excellent quality services at an affordable price. Price leadership and differentiation approaches in the JetBlue industry give them a strategic advantage.JetBlue Airways is one of the low cost air carriers that turns a typical flight into "experience," with leather seats and 24 free DIRECTV channels programmed on every plane.

To order to boost client satisfaction and retain the organization as a leader to the aviation industry, the emphasis has been on technology. The company focuses heavily on differentiation, a focus on innovation and technology and a strong focus on providing consumers with a 100% e-ticketing option.JetBlue is a discount airline and a traveler books with JetBlue for the most regular purpose. Nonetheless, JetBlue is recommended to friends because the most important explanation is quality. The airline is truly unique among domestic carriers thanks to its professional staff, leathers and 24 channels satellite seatback TV systems. Such features attract back customers.

In the expense hand, JetBlue retains low labor costs — about 25% of the revenue in Southwest and 44% in Delta, compared to 33% in South Central. Through income sharing and stock options, the organization makes small wages. Booking officers work at home, reducing time and the company's office space. Maintenance is about one-quarter of the competition's costs, as JetBlue has a new Airbus A320s fleet.

For contrast to 11 hours in the southwest and 9 hours at many other carriers, the A320s operate on average twelve hours a day. One cause of the additional use is that JetBlue flies point to point, unlike major competitors that fly large hub-speaking networks. A logistic nightmare is the large hub and speaker systems which make it hard to keep the aircraft in time.The organization therefore focuses on low costs and the differentiation strategy to gain competitive advantage in its market. The business will achieve sustainability with a emphasis on both approaches.

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