Verified Document

JetBlue 10 K Research Paper

¶ … JetBlue's strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion? The strategy for JetBlue's success in the marketplace is described in the company's 10-K/A filling. Their goal is to 3 establish JetBlue as a leading low-fare, low-cost passenger airline by offering customer's high-quality customer service and a differentiated product.' (JetBlue,2005) By doing this, they are trying to 3 stimulate market demand while maintaining a continuous focus on cost-containment and operation efficiencies.' (JetBlue, 2005) Based on the filing, JetBlue relies on product leadership customer value proposition. The four key elements to their strategy are:

Stimulate demand with low fares

Emphasize low operation costs

Offer point to point flights to underserved and/or overpriced large markets

Differentiate our product and service (JetBlue, 2005)

Due to the strategies, JetBlue has been able to grow largely as a company and become one of the leading airlines which focus on customer satisfaction at a low operating cost.

What business risks does JetBlue face that may threaten the company's ability to satisfy stockholder expectations? What are some examples of control activities that the company could use to reduce these risks? (Hint: Focus on pages 17-23 of the 10-K/A.)

As...

For JetBlue, they operate in an extremely competitive industry and must be able to remain a leader in their industry to ensure they are continuing to satisfy stockholder expectations. Some of the risks are items such as; maintenance costs will increase as the fleet ages, not being able to attract and/or retain qualified personnel at reasonable costs, or not being able to keep low costs for customers. These are just some of the items that could affect their ability to satisfy their stockholders.
How can the concept of unit-level activities be applies to an airline? More specifically, what are two examples of unit-level activities for JetBlue? What steps has JetBlue taken to manage these unit-level activities more efficiently?

Unit-level activities are 3 performed each time a unit of a product is produced. The number of times unit-level activities are performed varies according to the number of units produced.' (principles of accounting). This concept can be applied to airlines because things such as fuel cost and the additional services given to the passengers. To handle the rising in fuel prices, JetBlue has offered promotional tickets for passengers who have no luggage. The theory with that is that the more passengers with luggage, the more fuel used due to the weight of the plane. So to get around fuel prices, reward individuals for choosing to fly…

Sources used in this document:
References

CliffsNotes.com. Activity-Based Costing Activities. Retrieved on January 11, 2013 from Noreen, E.W., Brewer, P.B., Garrison R.H. (2011).

Managerial accounting for managers (2nded.). New York, NY: McGraw Hill. ISBN: 978-0-07-352713-0.

Principles of Accounting. Process Costing and Activity-Based Costing. Retrieved on January 11,2013 from http://www.principlesofaccounting.com/chapter%2020.htm
Cite this Document:
Copy Bibliography Citation

Related Documents

JetBlue Firms Compete Using a
Words: 2679 Length: 9 Document Type: Research Paper

With slim margins, JetBlue and other airlines must discover and capture market share in the most profitable routes. Not only does this serve the route-building strategy of JetBlue, but it allows the company to be more profitable than its rivals. Thus, there needs to be good external information gathering capabilities in addition to internal information systems. 3. Unit-level activities are those that are conducted at the unit or work group

Jetblue's Position and Potential
Words: 580 Length: 2 Document Type: Term Paper

JetBlue: Fighting for a Bigger Slice of the Pie in the Sky In the highly competitive commercial air travel business, earning a profit and earning the loyalty of customers generally go hand in glove. And as to profit, airlines that offer the most destinations and the most customer perks, snacks, and promotions are not necessarily the most profitable. JetBlue has a mountain to climb to be able to compete head-to-head with

JetBlue Mission & Vision
Words: 1666 Length: 5 Document Type: Business Plan

JetBlue Mission and Vision A company's mission statement should reflect its "unique purpose and reason for being" (Zain Books, 2014) Now, realistically, companies exist to earn their shareholders a return, and the mission of the company is therefore to increase shareholder wealth (Friedman, 1970). But this is not something that can be sold to the other stakeholders of a business, especially not the employees. They need to feel that they are contributing

Jet Blue Competitive Analysis
Words: 2368 Length: 7 Document Type: Research Paper

JetBlue is an airline based in New York City, operating both domestic and international routes. JetBlue was founded in 1999 by David Neeleman, a former Southwest Airlines executive, using much the same business model. The company received 75 landing slots at JFK later that year, and by December had taken delivery of its first aircraft from Airbus. The first flight was on February 11th between JFK and FLL (JetBlue.com, 2015).

Jet Blue Vincent One Can Call Jet
Words: 2521 Length: 6 Document Type: Term Paper

Jet Blue Vincent One can call Jet Blue an airline with a vision, and in terms of pricing, the only airline that it can be compared with is Southwest Airlines. The founder of this airline had the confidence to take on the entrenched airlines and he had only one desire to prepare and that was to create a low-cost, high-service airline that passengers wanted to fly in. One of the aims of

Southwest Airlines SWOT Analysis Southwest
Words: 1422 Length: 4 Document Type: SWOT

Customers complain of smaller cramped seats and hence an uncomfortable flight experience. This is because Southwest wants to accommodate as many passengers as it can in one flight and its seats are thus smaller than those found in other airlines. This is especially uncomfortable for those who need extra space due to physical challenges. The other weakness of Southwest is its customer on-plane experience. Owing to the cost concern, Southwest

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now