An Examination of the Core Strategy of JetBlue and Its Financial Performance Essay

The airline industry is extremely competitive. Following deregulation of the airline industry, the barriers to entry became almost nonexistent, allowing for many different airlines to begin competing in the market. While many of these companies thrived, others have had trouble keeping up. Following the terrorist attacks of September 2001 and the economic recession of 2008, airlines are becoming more and more competitive with one another. (Dess, Lumpkin, Eisner, McNamara, 2011) JetBlue is a very well-known airline started by a veteran of the industry. While the organization experienced a great deal of success and was in many ways a trendsetter in its beginning years, the last decade of its operation has been wrought with inconsistency. The following case analysis will examine whether or not JetBlue moved away from its core strategy, examining if JetBlue will ever be was it was envisaged to be. The paper will then examine the financial condition of JetBlue before looking at the potential success of JetBlue in offering first class services on long flights. JetBlues Core StrategyBefore examining whether or not JetBlue moved away from its core strategy, the core strategy itself must be identified. Airlines traditionally operate as three different types of companies. They are either a major airline, regional airline, or a low-fare airline. (Dess, Lumpkin, Eisner, McNamara, 2011) JetBlue broke into the market as a low-fare airline. It quickly gained market share by offering extremely low cost tickets to cost-conscious consumers. However, cost wasnt the only thing that allowed JetBlue to break into the market so successfully. In the words of David Neeleman, the companys founder, JetBlues mission statement was to bring humanity back to air travel. (Dess, Lumpkin, Eisner, McNamara, 2011)While JetBlue was able to be very cost effective by minimizing their bottom line and increasing efficiency in time management, they also were well-known for their customer service capabilities. Employees were very customer-service oriented. (Dess, Lumpkin, Eisner, McNamara, 2011) In addition, their single-class...

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