Question

Q2. What internal resources and assets does JetBlue have, that may give it a competitive advantage? Critically discuss whether Jet Blue position is supported by its value chain and other internal resources. (35 marks- 800 words)

Answer 1

What internal resources and assets does JetBlue have, that may give it a competitive advantage?

ANSWER :

• JetBlue got its primary base at John F. Kennedy (JFK) airport. It helps it to benefit from John F. Kennedy (JFK) airport infrastructure. It also has base in Long Beach airport (LGB). It covers its customer base through it. It pays reduced rents of airport and gate. They are less crowded airports.
• Codesharing, inline agreements and strategic partnership with major airlines
• They became diversified in routes for short and long travels.
• They use technology like electronic platforms for work and communication with passengers / employees

JetBlue’s competitive advantage

• Low cost advantage: through efficient operations and use of technology, they also restyled cabins to accommodate more passengers and added more seating capacity to planes for revenue in wake of hike in fuel prices. Their pilots sometimes clean the plane if required so that they have less staying on ground. They have thus very innovative and collaborative culture
• Differentiated products: They ensure high quality customer service for best flying experience and their recent new pricing model with top up of customized features to serve customers better is quite popular.
• Continuous innovation: “Go places” app on face-book for customers to earn free trips, “Even more” suite of products with customer desired top features, TrueBlue mosaic loyalty program are examples of it.

They employed “above humane” strategies that gave value to customers and attracted new ones. They used technology that reduced marketing costs. Their demerits are the technical glitches in the reservation system. It lacked capabilities to accommodate high customer call volume. Airport kiosks were not always available for rebooking. Customers didn’t like restyled seats as gave less legroom. In 2016, passengers injured in turbulence, so safety issues exist.

Critically discuss whether Jet Blue position is supported by its value chain and other internal resources ?

ANSWER :

Jet Blue Value chains

Firm Infrastructure: The best and most exorbitant offices and innovation may be powerful if the activity likewise has a proper foundation (Slack et al., 2004). Jet Blue advantages from a long convention and rich legacy as a top notch LCC .The organization particular abilities is the excellent administrations that it gives to the client at worthy cost, quality administrations and the solid brand name. The strong activities base, upheld by the solid brand, gives the organization a decent stage for future development in deals and benefit.

Human Resource Management: It is basic to keep up worker relations and execution the executives, a wide scope of HR exercises was utilized: center advantages of compensations, annuities, life affirmation wellbeing and security. They additionally offers an adaptable advantages program, preparing and advancement projects, limits and cooperations in organization share plans offers. Work approaches are intended to give equivalent chance, independent old enough, sex, religion or race and work by handicapped people are given full and reasonable contemplations.

Innovation advancement: The expansion of first level motor to spare fuel and make activity cost proficient and separated from that internet booking has been an activity from the Jet Blue to bring down cost and oversee effectiveness. 80% of the appointments in the year done using web innovation in the year 2007.

Activities: Jet Blue has formed its image strategic give its clients items that consolidate with the quality assistance and offering quality items. The complete working airplane of Jet Blue carrier in the year 2006 has been 119 in which five of the more seasoned one sold (in the information given) and 12 were conceded that are to be utilized during the year 2007-2009, this brought about the rest of the airplane left to 119 for example same for the year 2007. Jet Blue stayed away from old planes and rather it liked to work A-320. The Airbus A-320 was picked over much well known Boeing-737 with the goal that they are more eco-friendly over the long haul and could spare expense. The planes likewise accompanied 5 years guarantee. Likewise Jet blue worked a uniform armada of planes that empowered them to spare pilot preparing, upkeep and extra part cost of the entire activity. Aside from that the setup of single class empowered Jet blue to oblige most extreme number of seat conceivable in the planes. Jet Blue has additionally been brilliant in picking auxiliary city that were dismissed by the significant bearer and they pick optional air terminal as the base for their activity that had less traffic. This empowered them to acquire preferable business terms over the primary ones. Jet  Blue additionally attempted to work greatest number of flights every day and attempted to fly just highlight point flight in order to dodge significant difficulty and had the option to work with lesser staff. The utilization of e-tagging additionally permitted them to spare costs in booking and curtailing end activity. Robotization and further innovative tackling permitted them to spare additionally cost. The operational proficiency that had been shelter to working and productivity of Jet Blue, recently, end up being a fiasco during the year 2007.

Inbound and outbound coordinations: Data not accessible for the provider of various items utilized in reward and administrations.

Promoting and deals: Jet Blue don't publicize in the Aviation part, anyway publicizing is focused on the certifications of the its motto: indicating esteem transporter (Mintel, 2003). Jet Blue own-image proceeds with its journey in building buyer trust regarding estimating, expansiveness of administration range, and client offering. Being referred to fill in as a minimal effort bearer it caters for all financial market. They convey their image and items by advancements, meetings, occasions, occasional endowments guides, handouts, national customer magazine and ordinary contact with columnists and highlights essayists. 80% of the client booking of ticket deals is done through the on the web or e-tagging.

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