L/O/G/O

Case Study:

JetBlue Airways:Starting From Scratch

Case Study:

JetBlue Airways:Starting From Scratch

Syndicate 5Muhammad Ridwan – 29112555

Machadi Dhana – 29112303

Mahammad Khadafi – 29112324

Pedro Putu Wirya – 29112565

Seto Kusparyanti – 29112306

Yuliani Dewi Risanti – 29112321

Rahdianto Maulana – 29112554

JetBlue: BackgroundJetBlue: 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

JetBlue: BackgroundJetBlue: 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

Case FormulationCase 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?

JetBlue ProfileJetBlue Profile

• Product: flight service

• Primary Hub: JFK International Airport – New York City

• Aircraft: Airbus 320

• Working environment: non-union

JetBlue ProfileJetBlue Profile

Business Strategy:• Aggresive growth strategy, one new plane

was bought every five weeks

• Low cost carrier approcah

JetBlue ProfileJetBlue Profile

Functional Strategy:• Marketing strategy:

– Segmentation: medium - low– Targeting: people who previously would not

go by plane – Positioning: low cost carrier– Customer friendly

JetBlue ProfileJetBlue 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

JetBlue ProfileJetBlue 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

Industry CompetitivenessIndustry Competitiveness

• For low fare flight services, JetBlue face competitions with:– Southwest Airlines; biggest competitors– America West– Midwest Express– AirTran– Midway– Frontier

Case AnalysisCase Analysis

JetBluePerformance

JetBluePerformance

OrganizationalCapability

OrganizationalCapability

OrganizationalCulture

OrganizationalCulture

Human capital management of

JetBlue must develop its employees to

create organizational culture, alligning with its business strategy

BusinessStrategy

BusinessStrategy

SafetyCaring

IntegrityFun

Passion

Aggressive growth

strategy

Case AnalysisCase Analysis

CO

Safety

CSOIU

Caring

OAOC

Integrity

SCT

Fun

ACHTW

Passion

Core competence integrated in JetBlue’s values

ConclusionConclusion

• 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.

L/O/G/O

Thank You!Thank You!