JetBlue Airways Corporation aims to increase sales by 10% annually and EPS by 10% annually. Its objectives also include maintaining an ROE of 20-25% and minimum 30% sales from new products for 3 years. JetBlue was established in 1998 and is headquartered in New York. It primarily serves destinations in the US as well as the Caribbean and Latin America. JetBlue seeks to distinguish itself through services like inflight entertainment and aims to "bring humanity back to air travel" through a low cost business model with amenities like more legroom.

2. Case study on “JetBlue
airway corporation”

3. What is strategic plan?

4. OBJECTIVES OF JETBLUE
AIRWAY
• 10% increased in sales.
• EPS increased by 10% or + annually
growth.
• On an average ROE is 20-25%.
• Minimum 30% of sales of new
product for 3 years.

5. HISTORY OF JETBLUE AIRWAY
CORPORATION
• Established in 1998
• JetBlue was incorporated in Delaware in Well
positioned in one of the largest travel markets
• 1ST founder David Neeleman. February 1999, under the
name "New Air”.
• Company headquartered at the Long Island New York.
• Its main base is John F. Kennedy International Airport
• The airline mainly serves destinations in the United
States, along with flights to the Caribbean, The
Bahamas, Bermuda, Barbados , Colombia, Costa Rica,
the Dominican Republic, Jamaica, Mexico and Puerto
Rico

6. • David Neeleman 1st founder , JetBlue followed other
domestic airlines approach of offering low-cost travel,
but sought to distinguish itself by its services, such as
in-flight entertainment, TV on every seat and Satellite
radio.
• CEO’s vision “To bring humanity back to air travel”
low cost
In-flight entertainment
More legroom then any other airlines
• JetBlue's founders had set out to call the airline "Taxi“
The idea was dropped later.
HISTORY OF JETBLUE AIRWAY
CORPORATION

7. EXECUTIVE TEAM
• David Neeleman: Chief Executive
Officer
• Dave Barger: President & Chief
Operating Officer
• Thomas Kelly: Executive Vice
President
• John Owen: Executive Vice
President & Chief Financial Officer

8. 2000: They start their services.
2001: Most airlines lost millions in revenue after 9/11 but JetBlue made profit and
increased network by adding 6 more destination
2002: Acquired 100% of the ownership interests in Live TV.
IN 2002 Won “Air transport world market development” award.
And also won “best airline” award in 2002
2003: JetBlue announced its IPO of 5.86 million shares of CS at price US$27 per
share
2004: Launches online flight check-in.
2005: Receives FAA’s highly coveted diamond certificate of excellence award
2007: Introduce “customer bill of right”
2009: They suffer losses due to swan flue 7% share decrease US$4.91
HISTORY OF JETBLUE AIRWAY

10. JET BLUE PRODUCT
AND SERVICES

23. OUTLINE OF PRESENTATION
STEP: 8 CONCLUTION BY TASKEEN ALI
STEP: 7 STRATEG EVALUATION BY TASKEEN ALI
STEP:6 STRATEGY IMPLEMENTATION BY RUBIYA TAHIR
STEP: 5 STRTEGY FORMULATION BY AYESHA SIDDIQUI
STEP: 4 EXTERNALASSESSMENT BY SEHRISH AHMED
STEP: 3 INTERNALASSESSMENT BY TASKEEN ALI
STEP: 2VISSION / MISSION

24. STEP # 2
VISION AND MISSION
STATEMENT

25. VISION STATEMENT OF JETBLUE
AIRWAY
“Is to be the best regional air carrier by
providing low-fare, low- cost,
enjoyable and safe flight experiences
to our passenger”

26. MISSION STATEMENT OF JETBLUE
AIRWAY
“Jet blue mission is to be the leading low-fare, low-cost
passenger airline offering high quality customer service to
underserved markets and customers who are looking for the
best value in their flight. We have the newest most advanced
planes that are reliable, safe, fuel efficient, utilizing advanced
technologies and unique in multimedia entertainments. Our
philosophy is to give customers the best price value for their
ticket and maintaining distinctive services. At jet blue we hire
highly motivated employees and train them to reach a high
level of competency to provide better experiences to
customers. We believe that our high- value , high quality
service philosophy will lead the way to becoming the number
one in the industry”

27. COMPONENTS OF MISSION
STATEMENT
CUSTOMER: Jet blue mission is to be the leading low-fare, low-
cost passenger airline offering high quality customer service to
underserved markets and customers.
TECHNOLOGY: We have the newest most advanced planes that
are reliable, safe, fuel efficient, utilizing advanced technologies and
unique in multimedia entertainments.
PHILOSOPHY: . Our philosophy is to give customers the best
price value for their ticket and maintaining distinctive services.

28. CONCERN TO EMPLOYEE: . At jet blue we hire
highly motivated employees and train them to reach a
high level of competency to provide better experiences to
customers
CONCERN FOR SURVIVAL GROWTH AND
PROFITABILITY: We believe that our high- value ,
high quality service philosophy will lead the way to
becoming the number one in the industry”

29. NEW
VISION STATEMENT
“Become the number one airline in the
world”

30. NEW MISSION STATEMENT
“Here at JetBlue airway our mission is to provide affordable direct
flight. we want to also accommodate our customers with the best all
around flight service from the moment they arrive at the airport to
the time they arrive at their destination. at JetBlue our services and
philosophy is to fly safe with high frequency, low-cost flights that
allow for timely arrival with limited travel from the airport.
constantly looking for new ways to satisfy our customers by staying
a top technological advances and services. : Not only do we look
after our customers but also the planet by limiting waste and
recycling used materials. We provide equal employment
opportunities and a stable working environment with room for
advancement. Continuing to grow as a company and developing to
be the top airline and met the demand of our consumers is key. We
believe that air travel should be provided at an affordable rate in
order to satisfy our customers. Providing the lowest fairs and the
highest quality service is our guarantee to customers”

31. COMPONENTS OF MISSION
STATEMENT
CUSTOMER:
Here at JetBlue airway our mission is to provide affordable
direct flight.
PRODUCT AND SERVICES:
We want to also accommodate our customers with the best all
around flight service from the moment they arrive at the airport
to the time they arrive at their destination.
MARKET:
Continuing to grow as a company and developing to be the top
airline and met the demand of our consumers is key.

32. TECHNOLOGY:
Constantly looking for new ways to satisfy our customers by
staying a top technological advances and services.
CONCERN FOR SURVIVAL GROWTH AND
PROFITABILITY:
We believe that air travel should be provided at an affordable rate in
order to satisfy our customers.
PHILOSOPHY:
At JetBlue our services and philosophy is to fly safe with high
frequency, low-cost flights that allow for timely arrival with limited
travel from the airport.
SELF-CONCEPT:
Providing the lowest fairs and the highest quality service is our
guarantee to customers.

33. CONCERN FOR PUBLIC IMAGE: Not only do we look after
our customers but also the planet by limiting waste and recycling
used materials.
CONCERN FOR EMPLOYEES:
We provide equal employment opportunities and a stable working
environment with room for advancement.

34. MISSION STATEMENT OF SOUTH
WEST AIRLINE
“The mission of Southwest Airlines is
dedication to the highest quality of
Customer Service delivered with a sense
of warmth, friendliness, individual pride,
and Company Spirit”.

35. “Our vision is to expand our locations both domestic
and overseas by being the largest and most profitable
airline company, to achieve both short- and long-haul
carriers efficiently and with low cost. Also to be To be
an airline carrier that has the most productive
workforce, to guarantee the best flight possible for
each and every”.
VISION STATEMENT OF
SOUTH WEST AIRLINE

36. INTERNAL ASSESSMENT
STEP NO. # 03

37. a) JET BLUE AIRWAYS CORPORATION
RATIOS ANALYSIS

38. Liquidity
Ratios
•Measure a firm’s
ability to meet
maturing short-
term obligations.
Leverage
Ratios
•Measure the
extent to which a
firm has been
financed by
debt.
Activity Ratios
•Measure how
effectively a firm
is using its
resources.
Profitability
Ratios
•Measure
management’s
overall
effectiveness as
shown by the
returns
generated on
sales and
investment.
FINANCIAL RATIOS

39. Liquidity Ratios
Current Ratio 1.32 ratio
Quick Ratio 1.04 ratio
Leverage Ratios
Debt to Equity 1.90 ratio
Debt to total Assets 4.26 ratio
Interest Coverage 1.52 ratio
Activity Ratios
Inventory Turnover 21.57 times
Payables Period 57.29 days
Fixed Assets Turnover 0.72 ratio
Total Asset Turnover 0.52 ratio
Receivables Turnover 39.35 %
Average Collection
Period
31.09 days
Profitability Ratios
Gross Margin 77.0 %
Operating Margin 8.5 %
Earnings Per Share 0.20 USD million
Return on Assets 0.92 %
Return on Equity 4.14 %
Return on Invested
Capital
3.78 %
Tax Rate 41.41 %
Free Cash Flow/Sales 0.61 %
Free Cash Flow/Net
Income
0.34 %
Dividends Yield -
Payout Ratio -
No. of Shares 332 USD million

40. b) JET BLUE AIRWAYS CORPORATION
ORGANIZATIONAL CHART

41. ORIGNAL ORGANIZATIONAL CHART

42. c) JET BLUE AIRWAYS CORPORATION
RECOMMENDED ORGANIZATIONAL
CHART

43. RECOMMENDED ORGANIZATIONAL
CHART
CEO
CFO
*CSO
CIO
HRM
CLO
COO
*R&D
CMO
*CTO
*CIO *MO

44. d) JET BLUE AIRWAYS CORPORATION
MARKET POSITION

45. MARKET POSITION

46. JETBLUE + JET LITE

47. MARKET POSITION GRAPHICAL REPRESENTATION

48. e) JET BLUE AIRWAYS CORPORATION
MARKETING STRATEGY V/S
COMPETITORS STRATEGIES

49. Low cost advantage
Product development
Adding Value while differentiating and reducing costs
JETBLUE AIRWAYS CORPORATION STRATEGIES

50. f) JET BLUE AIRWAYS CORPORATION
VALUE CHAIN ANALYSIS
CHART

51. •Strong internet presence (jetblue.com, TrueBlue, Facebook, Twitter)
•Web-based ticketing
Inbound Logistics
•Crew-scheduling software
•Automated baggage handling
•No meals : efficient turnaround time and reduced costs
Operations
•Airports are chosen carefully
•Less congested airports
Outbound
Logistics
•Call Center employees all work out of their homes in and around Salt Lake
City, Utah
•No office rentals, cubicle space, etc.
•Specific market segment is identified and targeted
•Effective and attractive pricing
Marketing &
Sales
•Emphasis on customer service - Customer Bill of Rights
•Focus on “We encourage you to use the Call Button”
•Constant interaction and communication from CEO
Service
VCA CHART

52. g) JET BLUE AIRWAYS CORPORATION
WEBSITE COMPARASION WITH
RIVAL AIRLINE

53. Facebook AccountTweeter Account

54. Youtube Account Google + Account

55. www.jetblue.com www.southwest.com

56. h) JET BLUE AIRWAYS CORPORATION
VALUE OF THE FIRM
(COMPETITIVE ADVANTAGE)

57. VALUE OF THE JETBLUE
Competitive Advantages
Distinctive Competencies
Arise of Core Competencies
Value Chain Activities

58. VALUE OF THE JETBLUE AIRWAYS
CORPORATION
Positioning Capabilities
Value of
the JetBlue
Airways
Corporation
JetBlue looks; “to bring humanity back to air travel”

59. Positioning Brand
Jetting Happy (and the color Blue)
•Not “flying”, but “Jetting” - a new experience
•Green and socially conscious
Geography
Looking for markets with fewer competitors - not at all
the large airports
•Point-to-point operations, not a hub airport
•Purchased smaller jets to facilitate smaller airports
•Covers domestic flights and is moving international
VALUE OF THE JETBLUE AIRWAYS
CORPORATION

60. Capabilities
Products/services
Extra amenities
•Sleep kit, leather seats, TV’s at each seat, additional leg
room etc
•Low cost airfare
Technology
High on technology
•TrueBlue rewards service is all online
•Facebook and Twitter accounts
•DirectTV and Satellite television/radio on all seats on all
flights
VALUE OF THE JETBLUE AIRWAYS
CORPORATION

61. Capabilities Processes
Streamlines the process
•Majority of ticketing and paperwork is done online -
Business Model
Low price flights
•No airport hub - avoiding areas with lots of competition
•Point to point destinations
•Keep the employees happy - no-layoff policy
•No unions have been formed - during one attempt, only
35% of machinists wanted to join a union
•Profit sharing
•Highly regarded training process
VALUE OF THE JETBLUE AIRWAYS
CORPORATION

62. i) JET BLUE AIRWAYS CORPORATION
STRENGTHS AND WEAKNESSES

63. 1. Low fares compared to other airlines.
2. Online presence and technology help to build customer loyalty.
3. Provide exceptional customer services.
4. Low labour wages that save them money.
5. More efficient and reliable planes.
6. Offer attractive amenities (only airline to offer live TV in-flight, Sirius XM
satellite, leather seats, seat back LCDs, etc).
7. High commitment to hiring better employees.
8. AIR BLUE.com was the THIRD-largest travel site. The "look-to-book" ratio
is twice that Travelocity and higher than any traditional retailer.
9. Air blue is one of the 7th safest and consecutively 5/5 stars for its product
offering U.S. airlines.
10. The only U.S airline that follows Customer Bill Rights (compensate in case
of inconvenience and unavoidable circumstance.
11. Best utilization of the operational assets in order to expand the business.
STRENGHTS

64. WEAKNESSES
1. Earning correlated to fuel prices was offset.
2. From airborne time, higher % of diverging of customers.
3. Underestimate their potential competitors.
4. Fuel consumption, as a % of expenses, is rising rapidly.
5. Very low percentage of full-time employees.
6. Jet blue does not provide any meal, only snakes and beverages.
7. Bad acquisition of US$500 million ($20 billion) in cash for the Air Sahara
airline that Jet Airways was paying too much.
8. No concept of fuel hedge contract (future).
9. Provide lowest number of morning flights in industry.
10. Unsustainable growth rate due to fast pace of continued addition in plans
and routes.

65. j) JET BLUE AIRWAYS CORPORATION
INTERNAL FACTOR EVALUATION
(IFE) MATRIX

66. STRENGTHS (KEY INTERNAL FACTORS) WEIGHT RATING WEIGHT
ED
SCORE
Low fares compared to other airlines 0.1 4 0.4
Online presence and technology help to build customer loyalty 0.06 3 0.18
Provide exceptional customer services 0.05 4 0.2
Low labour wages that save them money 0.02 3 0.06
More efficient and reliable planes 0.03 4 0.12
Offer attractive amenities (only airline to offer live TV in-flight,
Sirius XM satellite, leather seats, seat back LCDs, etc)
0.05 4 0.2
High commitment to hiring better employees 0.04 4 0.16
AIR BLUE.com was the THIRD-largest travel site. The "look-to-
book" ratio is twice that Travelocity and higher than any
traditional retailer
0.04 4 0.16
Air blue is one of the 7th safest and consecutively 5/5 stars for
its product offering U.S. airlines
0.03 4 0.12
The only U.S airline that follows Customer Bill Rights 0.05 4 0.2
Best utilization of the operational assets in order to expand the
business
0.04 4 0.16

67. WEAKNESSES (KEY INTERNAL FACTORS) WEIGHT RATING WEIGHT
ED
SCORE
Earning correlated to fuel prices was offset 0.1 1 0.1
From airborne time, higher % of diverging of customers 0.03 2 0.06
Underestimate their potential competitors 0.02 2 0.04
Fuel consumption, as a % of expenses, is rising rapidly 0.04 2 0.08
Very low percentage of full-time employees 0.03 2 0.06
Jet blue does not provide any meal, only snakes and beverages 0.02 2 0.04
Bad acquisition of US$500 million ($20 billion) in cash for the
Air Sahara airline that Jet Airways was paying too much
0.04 2 0.08
No concept of fuel hedge contract (future) 0.1 1 0.1
Provide lowest number of morning flights in industry 0.06 2 0.12
Unsustainable growth rate due to fast pace of continued
addition in plans and routes
0.05 2 0.1
Total Weighted Average Score 1.00 2.74

68. STEP # 4
EXTERNALASSESMENT

69. MAJOR COMPETITORS
OF JETBLUE AIRWAYS

70. SOUTHWEST AIR LINE

71. DELTAAIR LINE

72. MARKETSHARE OF JETBLUE WITH
COMPETITORS
Sales
SOUTHWEST
DELTA AIR LINE
JETBLUE
OTHERS

74. Competitive profile matrix (CPM)
Critical success
factors
Weights Rating weights Rating Weights Rating Weights
Advertising 0.05 3 0.15 4 0.2 3 0.15
Organizational
structure
0.09 2 0.18 3 0.27 3 0.27
Customer services 0.1 4 0.4 3 0.3 2 0.27
Global expansion 0.06 1 0.06 3 0.18 3 0.2
Financial position 0.08 3 0.24 2 0.16 3 0.18
Employee deduction
management
0.06 3 0.18 3 0.18 3 0.24
Experience 0.05 2 0.1 4 0.2 3 0.18
Customer loyalty 0.09 3 0.27 3 0.27 4 0.15
Market share 0.06 3 0.24 4 0.18 2 0.36
Product quality 0.1 2 0.2 2 0.2 4 0.12
E commerce 0.07 3 0.21 3 0.21 3 0.4
Price
competitiveness
0.1 2 0.2 3 0.3 4 0.4
southwest JETBLUE DELTAAIRLINE

75. EXTERNAL ASSESMENT

76. OPPORTUNITIES
• INDUSTRY EXPANSION
(GROWING AIRLINE INDUSTRY,ROUTE AND FLEET EXPANDED)
• TECHNOLOGICAL IMPROVEMENTS IN
(AIRPLANES,DESIGNS,OPERATIONS,MAINTAINANCE)
• RESERCH SHOWS THAT ECONOMY PASSENGERS ARE
WILLING TO SPEND UP TO $21 ON ONBOARD SERVICES)
• DEREGULATION OF INTERNATIONALAIR TRAVELS
• CAPITALIZE ON DOMESTIC HUBS
• CREATION OF AIR LINES ALLIANCES

77. THREATS
• STRONG COMPETITION
• GLOBAL CRISIS
• TECHNOLOGICAL CAPITAL INTENSIVE INDUSTRY
• TERRORISM
• UNION LABORS CONTRACTS AND STRIKES
• INCREASING HIGH FUEL PRICES
• HIGHER SECURITY ISUES BY AIR PORT

78. EXTERNAL FACTOR EVALUATION (EFE) MATRIX
FACTORS WEIGHT RATING WEIGHTED
SCORE
OPPORTUNITIES
INDUSTRY EXPANSION
(GROWING AIRLINE INDUSTRY,ROUTE AND FLEET
EXPANDED)
0.09 4 0.36
TECHNOLOGICAL IMPROVEMENTS IN
(AIRPLANES,DESIGNS,OPERATIONS,MAINTAINANCE
)
0.09 4 0.36
RESERCH SHOWS THAT ECONOMY PASSENGERS
ARE WILLING TO SPEND UP TO $21 ON ONBOARD
SERVICES)
0.08 4 0.32
DEREGULATION OF INTERNATIONAL AIR TRAVELS. 0.05 3 0.15
CAPITALIZE ON DOMESTIC HUBS 0.05 4 0.2
CREATION OFAIR LINES ALLIANCES 0.06 3 0.18

79. EXTERNAL FACTOR EVALUATION (EFE) MATRIX
FACTORS WEIGHTS RATINGS WEIGHTES
SCORE
THREATS
STRONG COMPETITION
{PARTICULARLY OTHER LOW COST AIRLINES)
0.1 1 0.1
GLOBAL CRISIS 0.09 1 0.09
TECHOLOGICALAND CAPITAL INTENSIVE
INDUSTRY
0.1 2 0.2
TERRIORISM (INCIDENT LIKE 9/11) 0.09 1 0.09
UNION LABOR CONTRACTS AND STRICKES 0.08 2 0.16
INCREASING HIGH FUEL PRICES 0.06 1 0.06
HIGHER SECURITY ISSUES BY AIRPORTS 0.05 2 0.1
Total 1 2.37

80. STEP # 5
STRATEGY FORMULATION

81. STRENGTH-WEAKNESS-
OPPORTUNITIES -THREATS
SWOT MATRIX

82. STRENGTHS:
1) Low fares compared to other
airlines.
2) Superior customer service.
3) Low labour wages that save them
money.
4) More efficient and reliable planes.
5) Only airline to offer live TV in-
flight.
6) High commitment to hiring better
employees.
7) Through their current workings,
they are able to build good brand
loyalty.
8) Air blue.com was the THIRD-
largest travel site
9) Air blue is one of the 7 safest U.S.
airlines.
10) Online presence and technology
help to build customer loyalty.
11) The only U.S airline that follows
Customer Bill Rights
12) Best utilization of the operational
assets in order to expand the
business
OPPORTUNITIES:
1) 11 out of 12 U.S. airline charge second
checked bag.
2) Deregulation on global sky policies in
international countries.
3) Increasing demand for air travel due to
the recovering US Economy.
4) Research shows that economy
passengers are willing to spend up to
$21 on onboard services (including
beverages and entertainment, snakes,
leather sets)
5) Untapped international market.
6) All other airlines that have much higher
fares.
7) Other airlines that have been hurting
since 9/11 attack.
8) Increasing use of the Internet.
9) Potential use of luggage-tracking
technology.

83. SO STRATEGY
• Expand and offer fight to Europe and make their superior price
value to the Europe market.(S1,S2,O5)
• Set up a compare and save feature on their website so people can
compare price on similar flight from different companies.
(S4,S6,O6,O8)
• Set up a TV ads about how JetBlue's plane are brand new and fuel-
efficient for the environment, and how they have bullet proof coot
pit doors and security cameras on board. (O3,S4,S5,S2 )
• Advertisement on popular travel websites and websites for travel
destinations that JetBlue services. (S8,O8)
• Find out which airlines are not ding well and may be heading for
bankruptcy, and try to find cities and areas that are greatly served by
that airlines and move in. such as, delta and southwest (S6,O7,O5)

84. OPPORTUNITIES:
1) 11 out of 12 U.S. airline charge
second checked bag.
2) Deregulation on global sky policies in
international countries.
3) increasing demand for air travel due
to the recovering US Economy.
4) Research shows that economy
passengers are willing to spend up to
$21 on onboard services (including
beverages and entertainment, snakes,
leather sets)
5) Untapped international market.
6) All other airlines that have much
higher fares.
7) Other airlines that have been hurting
since 9/11 attack.
8) Increasing use of the Internet.
9) Potential use of luggage-tracking
technology.
Weakness
1) Earning correlated to fuel prices
was offset
2) From airborne time, higher % of
diverging of customers.
3) Underestimate their potential
competitors.
4) Fuel consumption, as a % of
expenses, is rising rapidly.
5) Very low percentage of full-time
employees.
6) Jet blue does not provide any
meal, only snakes and beverages.
7) Bad acquisition of in cash for the
Air Sahara airline pay too much.
8) No concept of fuel hedge contract
9) Provide lowest number of
morning flights in industry
10) Unsustainable growth rate due to
fast pace of continued addition in
plans and routes.

85. WO STRATEGY
• Provide better verity of food and improve services that people
can enjoy their travel. (W7,O4)
• Rising fares slightly so that they are still the lowest price
airline but can make more profit given the increasing demand
for air travel. (W1,O3,O6)
• Advertise on TV so that JetBlue can become a better known
airline. (W2,O8)
• Start flying internationally to increase profits and become
more well-known, take business from hurting
airlines.(W1,O3,O7)
• Start a travel website about different travel destinations, and
include hotspots, attractions, restaurants& hotels as well as
JetBlue fares to get there. (W3,W2,08)

86. THREATS:
1) Many airlines including
JetBlue face union labour
contracts.
2) Unions can strike whenever
no agreements are made.
3) Fuel costs are high and are a
HUGE part of airline
expenses.
4) Breakeven load factor is
rising.
5) Higher security required at
airports is causing. higher
fees on tickets and more
customer dissatisfaction.
6) Increase competition in low
cost market.
STRENGTHS:
1) Low fares compared to other airlines.
2) Superior customer service.
3) Low labour wages that save them
money.
4) More efficient and reliable planes.
5) Only airline to offer live TV in-flight.
6) High commitment to hiring better
employees.
7) Through their current workings, they
are able to build good brand loyalty.
8) Air blue.com was the THIRD-largest
travel site
9) Air blue is one of the 7 safest U.S.
airlines.
10) Online presence and technology help
to build customer loyalty.
11) The only U.S airline that follows
Customer Bill Rights
12) Best utilization of the operational
assets in order to expand the business

87. ST STRATEGY
Slightly raise fares on ticket so they are still the
lowest-priced competitor yet are able to make
more money in an effort to pay for better
security, more fuel and better benefits for
employees so they are less likely to go on
strikes.(S1,S4,S6,T2,T3,T6,T7,T5)

88. THREATS:
1) Many airlines including
JetBlue face union labour
contracts.
2) Unions can strike whenever
no agreements are made.
3) Fuel costs are high and are a
HUGE part of airline
expenses.
4) Breakeven load factor is
rising.
5) Higher security required at
airports is causing higher fees
on tickets and more customer
dissatisfaction.
6) Increase competition in low
cost market.
Weakness
1) Earning correlated to fuel prices was
offset
2) From airborne time, higher % of
diverging of customers.
3) Underestimate their potential
competitors.
4) Fuel consumption, as a % of expenses,
is rising rapidly.
5) Very low percentage of full-time
employees.
6) Jet blue does not provide any meal,
only snakes and beverages.
7) Bad acquisition of in cash for the Air
Sahara airline pay too much.
8) No concept of fuel hedge contract
9) Provide lowest number of morning
flights in industry
10) Unsustainable growth rate due to fast
pace of continued addition in plans and
routes.

89. WT STRATEGY
• Offer sharp discounts for empty seats that are
left at the last minute.(T4,W4,W6)
• Improve services of full time employees by
providing a benefit to and differentiate itself
from its competitor (T7,W5)

90. BOSTON CONSULTING GROUP
MATRIX
(BCG MATRIX)

91. JET BLUE
From the case study, JetBlue airlines is
basically in the stars quadrant.

92. • The BCG matrix shows that the relative
market share is 2.75 and the industry growth is
15.5% .the position lie in star quadrant.
• Star may generate a cash but because market is
growing rapidly they require investment to
maintain their lead. If successful the star will
become a cash cow when its industry mature.

93. INTERNAL-EXTERNAL (IE)
MATRIX

94. JET BLUE
Internal Factor Evaluation
ExternalFactorEvaluation
Total weighted score:
EFE= 2.37
IFE= 2.74

95. STRATEGIC POSITION AND
ACTION EVALUATION
(SPACE) MATRIX

96. FINANCIAL POSITION Rating is (worst) to 6 (best) RATINGS
lower labor wages 6
largest amount of start up capital 4
high gross margin 6
High quarterly revenue growth 5
High market capitalization 3
TOTAL 24
INDUSTRY POSITION Rating is (worst) to 6 (best)
Increasing demand for air travel 6
Financial stable 3
Growth potential 6
untapped international market 4
effieinciet planes so resource utilization 3
is increase
TOTAL 22
STABILITY POSITION Rating is -1 (best) to -6 (worst)
Price range of competing services -2
competitive pressure -3
demand variability -1
risk involved in business -3
value of the American dollars -3
TOTAL -12
COMPITITIVE POSITION Rating is -1 (best) to -6 (worst)
Lowest fares -1
high commitment to hiring better people -2
superior customer services -2
reliability &efficient planes -2
customer loyalty -1
TOTAL -8

97. CONCLUSION:
SP AVERAGE IS -12/5 = -2.40
CP AVERAGE IS -8/5 = -1.60
FP AVERAGE IS 24/5 = 4.80
IP AVERAGE IS 22/5 = 4.40
DIRECTIONAL VECTOR COORDINATE:
• X COORDINATE: 2.80
• Y COORDINATE: 2.40

98. THE STRATEGY SHOULD BE IN
AGGRASSIVE QUADRANT

99. THE GRAND STRATEGY
MATRIX

100. JET BLUE
JetBlue airlines is
positioned in the first
quadrant. This means
JetBlue has a higher then
normal competitive
position among their
competitors in an
industry that has a good
growth rate.
Strategy for those in this
quadrant need to focus on
market development,
market penetration and
also related
diversification

101. QUATITATIVE STRATEGIC
PLANNING MATRIX(QSPM)

102. RANGE OF ATTRACTIVENESS
SCORE
1 = Not attractive
2= Somewhat attractive
3= Reasonable attractive
4= Highly attractive

103. fly internationally Increase advertising
KEY FACTORS WEIGHT AS TAS AS TAS
EXTERNAL 1 TO 4 1 TO 4
OPPORTUNITIES
11 out of 12 U.S. airline charge second checked bag. 0.03 - - - -
Deregulation on global policies in international 0.04 4 0.16 - -
countries
increasing demand for air travel due to the
recovering US Economy 0.03 4 0.12 4 0.12
economy passengers are willing to spend on services 0.04 - - - -
Untapped international market 0.125 4 0.5 3 0.375
All other airlines that have much higher fares 0.1 3 0.3 3 0.3
Other airlines that have hurting since 9-11 attack 0.1 2 0.2 3 0.3
Increasing use of the Internet. 0.075 3 0.225 3 0.225
Potential use of luggage-tracking technology. 0.05 2 0.1 1 0.05
THREAT
Many airlines face union labor 0.075 - - - -
threat of union strikes 0.075 1 0.075 1 0.075
Fuel costs are high and create significant expenses 0.1 1 0.1 - -
Breakeven load factor is rising 0.1 2 0.2 3 0.6
Higher security is causing price to increase and 0.01 2 0.02 1 0.02
more customer dissatisfaction.
Increase competition in low cost market 0.05 - - - -
TOTAL 1

104. fly internationally Increase advertising
KEY FACTORS WEIGHT AS TAS AS TAS
INTERNAL FACTORS 1to 4 1to 4
STRENGTH
Low fares compared to other airlines. 0.1 4 0.4 4 0.4
Superior customer service. 0.05 3 0.15 3 0.15
Low labor wages that save them money. 0.2 2 0.4 2 0.4
More efficient and reliable planes. 0.3 4 0.12 3 0.9
Only airline to offer live TV in-flight 0.05 - - - -
High commitment to hiring better employees 0.04 3 0.12 3 0.12
Build good brand loyalty (online) 0.06 3 0.18 4 0.24
AIR BLUE.com was the THIRD-largest travel site 0.04 - - - -
Air blue is one of the 7 safest U.S. airlines 0.03 - - - -
Best utilization of the operational assets in order
to expand the business 0.04 4 0.16 - -
The only U.S airline that follows Customer Bill
Rights 0.05 - - - -

105. WEAKNESS
Low fares Could means, less profit. 0.1 2 0.2 4 0.4
higher average airborne time % of diverted flights 0.03 2 0.6 2 0.06
Underestimate their potential competitors 0.02 3 0.06 4 0.08
Fuel consumption, expenses, is rising rapidly 0.04 1 0.1 - -
Very low percentage of full-time employees. 0.03 2 0.1 1 0.03
Bad acquisition of US$500 million ($20 billion) in cash
for the Air Sahara airline that Jet Airways was paying
too much 0.04 - - - -
Jet blue does not provide any meal, only snakes 0.02 - - - -
and beverages.
No concept of fuel hedge contract (future) 0.1 3 0.03 - -
Provide lowest number of morning flights in industry 0.06 - - - -
Unsustainable growth rate due to fast pace of
continued addition in plans and routes 0.05 1 0.05 3 0.15
TOTAL ATTRACTIVE SCORE 1 4.64 4.995
According to these 2 strategies, increase advertisement is
more preferable as compare to expand international flight .

106. Alternative Strategies 1
FLY INTERNATIONALLY
Extend flights to major hubs in Europe to start
off, then as that takes off, offer flights to Asia,
Australia, etc.
This is an example of Market Development
Cost: $100,000,000 for 3 planes, fuel for a year
and maintenance costs.

107. Alternative Strategies 2
INCREASE ADVERTISING AND EXPAND
TO OTHER MEDIA
JetBlue could advertise on TV, Radio, and
Online to boost revenues and popularity of the
airline.
This is an example of Market Penetration
Cost: About $45,000,000

108. “A strategy, even a great one, doesn’t
implement itself”
Jeroen De Flander

109. STEP # 6
STRATEGY IMPLENTATION

110. a). EPS/EBIT ANALYSIS
• Amount needed : $5.5 Million
• Stock price:$5.70
• EBIT : 422
• # Share outstanding : 260

111. EPS/EBIT ANALYSIS
COMMON STOCK DEBT
EBIT 332 EBIT 332
Interest 0 Interest 16.6
EBT 332 EBT 315.4
Tax (40%) 132.8 Tax (40%) 126.16
EAT 199.2 EAT 189.24
# outstanding
Shares
260 # outstanding
Shares
260
EPS 0.76 EPS 0.72

112. EPS/EBIT ANALYSIS
COMBINATION
EBIT 332
Interest 8.3
EBT 323.7
Tax(40%) 129.48
EAT 194.22
# outstanding Shares 260
EPS 0.75

113. GRAPICALLY ANALYSIS OF EPS
0.7
0.71
0.72
0.73
0.74
0.75
0.76
0.77
EPS
COMMON STOCK
DEBT
COMBINATION

114. b). JETBLUE AIRWAY PROJECTED
INCOME STATMENT
2009
Forecast
basis
1st pass
2010
feedback 2nd pass feedback Projected
2010
Revenues
3286M
1.1*2009
sales
3615 3615 3615M
Cost Of Goods
Sold
(1433)
43.609%*
2010sales
1576 1576 (1576)
Gross Profit 1853 2038 2038 2038
Less: other
expenses
(1346) 1481 1481 (1481)
EBDA 507 557 557 557
Depreciation
Depletion &
Amortization
(218)
10%*2009
net plant
225 225 (225)
EBIT 289 332 332 332
Interest Expense (190) 190 18.3 208.3 0.46 (209)
EBT 99 142 123.7 123
Income tax (41) 57 7.52 49.48 0.184 (49)
Net income 58M 85 10.78 74.22 0.22 74M

115. c).JETBLUE AIRWAY
PROJECTED BALANCE SHEET
2009 Forecast basis PROJECTED 2010
ASSETS
Cash 909M
909/3286*3615 1000M
Marketable Securities 240 240
Receivables 81 81/3286*3615 89
Inventory 40 40/3286*3615 44
Other Current Assets 268 268
Total Current Assets 1538 1641
Property Plant And
Equipment 4638
4638/3286*3615 5102
Investment And Advances 6
6
Deposits And Other Assets 372
376
Total Assets 6557 7125

116. 2009 FORCAST
BASIS
1ST pass AFN 2ND PASS AFN 3RD
PASS
AFN PROJECTED
B/S (2010)
Notes Payable 93 93 80 173 173 2 175
Accounts
Payable 384
384/3286*
3615
422 422 422 422
Accrued
Expenses 237
237/3286*
3615
237 237 237 237
Other Current
Liabilities 455
501 501 501 501
Total Current
Liabilities 1169
1253 1253 1253 1253
Deferred
Charges Taxes
Income 259
259 259 259 259
Long Term
Debt 2920
2920 119 3039 3039 3 3042
Other Long
Term Liabilities 667
667 667 667 667
Total Liabilities 5015 5099 5298 5298 5303
Common Stock
Net 3
3 200 203 203 6 209
Capital Surplus 1419 1419 1419 1419 1419
Retained
Earnings 118
85 203 203 (10.78) 192 203
Treasury Stock 2 2 2 2 2
Total SE &
Liabilities 6554
6726 7125 7114 7125

117. d). ANALYSIS OF PROJECTED
AND ACTUAL PERFORMANCE
PROFITABILITY RATIO
• GROSS MARGIN
43%
43%
44%
GROSS PROFIT
PROJECTED
ACTUAL
PROJECTED 43%
ACTUAL 43.42%

118. OPERATING NET PROFIT
9%
9%
9%
9%
OPERATING NET PROFIT
PROJECTED
ACTUAL
Projected 9%
Actual 8.97%

119. NET PROFIT
PROJECTED 2%
ACTUAL 2.56%
0%
1%
2%
3%
NET PROFIT
PROJECTED
ACTUAL

120. RETURN ON ASSETS
PROJECTED 10%
ACTUAL 14.7%
0%
5%
10%
15%
RETURN ON ASSETS
PROJECTED
ACTUAL

121. RETURN ON EQUITY
PROJECTED 3.76%
ACTUAL 4.6%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
RETURN ON EQUITY
PROJECTED
ACTUAL

122. EARNING PER SHARE
PROJECTED O.28
ACTUAL 0.35
0
0.1
0.2
0.3
0.4
EARNING PER SHARE
PROJECTED
ACTUAL

123. “However beautiful
the strategy, you should occasionally
look at the results”
Sir Winston Churcill

124. STEP #7
STRATEGY EVALUATION

125. a). JETBLUE AIRWAYS BALANCE
SCORECARD
STRATEGY MAP PERFORMANCE
MEASURES
TARGET INITIATIVES
FINANCIAL •Market value
•Seat revenue
•Plan lease cost
•25%per year
•20%per year
•5%per year
•Optimize routes
•Standardize
planes
CUSTOMER •FAA on time arrival
rating
•Customer ranking
•Number of customer
•First in industry
•98% satisfaction
•% change
•Quality
management
•Customer loyalty
program
INTERNAL •On ground time
•On-time departure
•<30 minutes
•93%
•Cycle time
optimization
LEARNING •% of ground crew
stakeholders
•% of ground crew
trained
• year 1 70%
• Year 4 90%
• year 6 100%
•Stockownership
plan
•Ground crew
training
Increase
revenue
Decrease
costs
Increase
profit
On time
flight
More
customer
Lowest
price
Improved turnover time
Align ground crew

126. CONCLUSION
STEP NO. # 08

127. a) JET BLUE AIRWAYS CORPORATION
RECOMMENDED V/S COMPANY’S
OWN FUTURE STRATEGIC PLAN

128. Re-structuring and Re-engineering
Strategy
• Removed 6 seats from the A320 fleet
Retrenchment Strategy
• Net savings of $30 million over five
years Additionally plan to reduce the
inflight crew to 3
Product Development
• Marketed to customers “more inches
of legroom than any other U.S.
airlines' coach cabin”
Market Development Strategy
• Extend flights to major hubs in Europe,
Asia, Australia, etc
Market Penetration Strategy
• Increase online advertisements to
boost revenues and popularity of the
airline
Related Diversification Strategy
• Start a travel website (trueblue.com)
about different travel destinations, and
include hotspots, attractions,
restaurants& hotels as well as JetBlue
fares to get there
Co.’s OWN FUTURE RECOMMENDED