"Jet Blue Airways"a discussion of M.Azim Ulfati

• "Evaluate whether or not Jet Blue was effective with executing its strategy of growth. "
• "Assess the risks and rewards of rapid growth within Jet Blue."
• "Recommend a future strategy for Jet Blue to deliver an acceptable return to its stakeholders and demonstrate how this strategy will achieve the goal."

I guess Jet Blue’s main strength is low fare-cost passenger airline that provides high quality customer service primarily on point-to-point routes (customer value oriented) employee oriented and its ability to formulate and execute effective and targeted strategies, enabled the company to rapidly expand its domestic and international market base.

Recently, Jet Blue’s focus on creating shareholder, value and conservative, high liquidity financial management has lead the company to make
profit during the recession of 2009 resulting in a positive cash flow for the first time. Jet Blue’s sound strategy and success in a weak economy makes it likely that the company will continue to succeed. It has been always committed to its customers and never disappoint customers but always result a positive impact by growing and executing an effective strategy and vision.

 Risks of rapid growth-

I think one of the key risks and problems that Jet Blue facing is competition. It has to fight each and every day against all other rivals for the travel purposes. It is dealt with low cost against virgin air line, Delta, Skybus, it is really hard to compete because demand for oil is going up around the world faster than we can increase the supply and will get worse with time.

The other risk is delaying of flights because of the crowded terminal.

The low fares of Jet Blue causes employee turnover.

  Rewards of rapid growth

I think the rapid growth reward is finding and having more resources and ideas, increasing the number of share holders in the stock market, increasing profit in a down turn economy and being a large employer and achieving all positive respect and value among the customers.

I would recommend market development for the Jet Blue airline.

The airline requires adding domestic locations and fly internationally, starts flights to European, Asian countries and Australia.

It needs Market penetration. It has to increase advertising and expanding to other media. Jet Blue does not need to depend only on word mouth but also it needs to advertise on tv, radio and online to gain popularity and boost revenues.

The last strategy that I would like to recommend is related diversification. The airline needs to build partnership travel website so that the users can look up information about various travel destination, and find hotels, restaurants etc.