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. 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. 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. 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. JetBlue Profile
• Product: flight service
• Primary Hub: JFK International Airport –
New York City
• Aircraft: Airbus 320
• Working environment: non-union
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. 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. 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. Industry Competitiveness
• For low fare flight services, JetBlue face
competitions with:
– Southwest Airlines; biggest competitors
– America West
– Midwest Express
– AirTran
– Midway
– Frontier
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.
