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Jet Blue Syndicate Presentation

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Jet Blue Syndicate Presentation

  1. 1. L/O/G/O Case Study: JetBlue Airways: Starting From Scratch Syndicate 5 Muhammad Ridwan – 29112555 Machadi Dhana – 29112303 Mahammad Khadafi – 29112324 Pedro Putu Wirya – 29112565 Seto Kusparyanti – 29112306 Yuliani Dewi Risanti – 29112321 Rahdianto Maulana – 29112554
  2. 2. JetBlue: 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
  3. 3. JetBlue: 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
  4. 4. Case 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?
  5. 5. JetBlue Profile • Product: flight service • Primary Hub: JFK International Airport – New York City • Aircraft: Airbus 320 • Working environment: non-union
  6. 6. JetBlue Profile Business Strategy: • Aggresive growth strategy, one new plane was bought every five weeks • Low cost carrier approcah
  7. 7. JetBlue Profile Functional Strategy: • Marketing strategy: – Segmentation: medium - low – Targeting: people who previously would not go by plane – Positioning: low cost carrier – Customer friendly
  8. 8. JetBlue 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
  9. 9. JetBlue 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
  10. 10. Industry Competitiveness • For low fare flight services, JetBlue face competitions with: – Southwest Airlines; biggest competitors – America West – Midwest Express – AirTran – Midway – Frontier
  11. 11. Case Analysis JetBlue Performance Organizational Capability Organizational Culture Human capital management of JetBlue must develop its employees to create organizational culture, alligning with its business strategy Business Strategy Safety Caring Integrity Fun Passion Aggressive growth strategy
  12. 12. Case Analysis CO Safety CSO IU Caring OA OC Integrity SCT Fun ACH TW Passion Core competence integrated in JetBlue’s values
  13. 13. Conclusion • 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.
  14. 14. L/O/G/O Thank You!

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