jetblue case study solution excel

Welcome back! Enter your email and Password below to sign in.

Don’t have an account?

Already have an account?

Forgot Password

Get 10% Off On Your Next Order

Subscribe Now to Get Your Discount Coupon *only correct email will be accepted

Total Price

Thank you for your email subscription. Check your email to get Coupon Code.

JetBlue Airways IPO Valuation Case Study solution

Introduction.

The current case solution is published by 247caseanalysis and focuses on JetBlue Airways IPO Valuation. The case presents an overview of the strategic and managerial issues that the JetBlue Airways IPO Valuation faces in the growth and development of the business. The case solution focuses on understanding the central issue(s) in the case. The case study solution then uses strategic tools and models to solve the case and makes strategic recommendations for the JetBlue Airways IPO Valuation (Abratt & Bendixen, 2018; Iacobucci, 2021).

The case study and the case solution for the JetBlue Airways IPO Valuation are intended to give a comprehensive and holistic perspective regarding real-world business situations and challenges to the reader. Like all HBS case studies, it is important for the reader to first read the case for the JetBlue Airways IPO Valuation. The proposed case study solution for the JetBlue Airways IPO Valuation has encompassed the needs of all stakeholders while addressing the central challenge effectively (Deepak & Jeyakumar, 2019).

External environment analysis

The JetBlue Airways IPO Valuation cannot directly influence the external environment. The JetBlue Airways IPO Valuation must ensure to assess and continually review the external environment to identify potential challenges and opportunities (Abratt & Bendixen, 2018). This is needed because:

The external environment is dynamic and keeps changing.

External environment factors and dynamics, directly and indirectly, influence JetBlue Airways IPO Valuation operations (Anthony, 2021).

PESTEL Analysis

The JetBlue Airways IPO Valuation needs political stability to maintain business development and growth globally.

The JetBlue Airways IPO Valuation must also pay heed to local and global taxation implications for operations carried on site, as well as in other countries.

The JetBlue Airways IPO Valuation is directly impacted by the policies and regulations devised by the governments in its host as well as home countries (Chernev, 2018).

Lower interest rates facilitate the JetBlue Airways IPO Valuation as it leads to increased instances of borrowing.

Lower interest rates also lead to increased consumer power, and increased demand for products of JetBlue Airways IPO Valuation (Deepak & Jeyakumar, 2019).

The operations and demand for JetBlue Airways IPO Valuation are directly influenced by the GDP and economic growth in the countries where it operates and exports (Buchanan & Huczynski, 2019).

Increased focus on education and higher literacy rates have allowed the JetBlue Airways IPO Valuation to benefit from a more skilled and talented labor pool.

The higher portion of the youth has also benefitted the JetBlue Airways IPO Valuation in creating a high demand for its products and services (Iacobucci, 2021).

Assessment of the population and consumer trends have allowed the JetBlue Airways IPO Valuation to refine its segmentation and targeting strategies – leading to improved positioning of its portfolio offering (De Mooij, 2019).

Technological

JetBlue Airways IPO Valuation has high internal innovation capabilities.

JetBlue Airways IPO Valuation invests in research and development for improved creativity and technological progress.

The JetBlue Airways IPO Valuation makes use of innovative and advanced technology to make its internal processes more efficient and work towards achieving economies of scale.

JetBlue Airways IPO Valuation also benefits from knowledge sharing through global operations and transfers technology internally (Baines, Fill, & Rosengren, 2017).

Environmental

The JetBlue Airways IPO Valuation follows and abides by environmental regulations imposed in various countries.

Consumers for JetBlue Airways IPO Valuation have rapidly adopted green lifestyles and green consumption.

Incorporating environmentalism into its strategic goals and direction has enabled the JetBlue Airways IPO Valuation to become more efficient in this resource allocation (Stead & Stead, 2014).

The JetBlue Airways IPO Valuation ensures to follow the equal employment and equal opportunity law.

Through the equal opportunity act and regulations, the JetBlue Airways IPO Valuation ensures that it does not discriminate against different groups in its HUMAN RESOURCE MANAGEMENT practices.

The JetBlue Airways IPO Valuation also ensures to abide by the health and safety regulations.

The JetBlue Airways IPO Valuation makes sure to follow regulations regarding employment contracts and employer responsibilities to ensure fair policy-making and high performance (Lasserre, 2017).

Porter Five Forces

Industry rivalry.

There is high competitiveness and rivalry in the industry.

The market is highly fragmented, which leads to increased competition for JetBlue Airways IPO Valuation.

The JetBlue Airways IPO Valuation faces industry rivals of various sizes and operations.

The competition for JetBlue Airways IPO Valuation is local as well as global in nature.

The increased rivalry in the industry ensures that all players, including JetBlue Airways IPO Valuation, offer high-quality products and services to consumers at competitive prices (Varadarajan, 2015).

The threat of new entrants

The threat of new entrants is moderate.

There are entry barriers such as government regulations and financial capital needed for setting up operations.

This ensures that only powerful players with high financial muscle enter the market where JetBlue Airways IPO Valuation is operating.

New entrants ensure that the JetBlue Airways IPO Valuation maintains its focus on competitiveness and high quality (Wunder, 2019; Abratt & Bendixen, 2018).

Threat of substitutes

The threat of substitutes is moderate to high.

There is direct well as indirect substitutes available for JetBlue Airways IPO Valuation offerings.

The high number of players and market fragmentation has led to the increased availability of substitutes for JetBlue Airways IPO Valuation products.

There are low switching costs for consumers between substitutes (Sahaf, 2019; Kotabe & Helsen, 2020).

Bargaining power of buyers

JetBlue Airways IPO Valuation operational a highly fragmented industry.

The bargaining power of the buyers is high.

Players, including JetBlue Airways IPO Valuation, do not have a retail setup (Phillips & Moutinho, 2018; Chernev, 2018).

Bargaining power of sellers

The bargaining power of suppliers is high in the industry where JetBlue Airways IPO Valuation operates.

There're numerous players in the industry, and suppliers have contracted with most of them.

The raw materials provided by suppliers are restricted, and limited owing to quality needs and benchmarks (Kotabe & Helsen, 2020; Joyce, 2022).

Internal environment analysis

The internal analysis allows an insight into the factors that JetBlue Airways IPO Valuation can directly influence. These factors and capabilities are used by the JetBlue Airways IPO Valuation to ensure that:

It is able to capitalize on the opportunities from the external environment.

It is able to mitigate risks and manage challenges and threats appropriately.

The JetBlue Airways IPO Valuation is able to set the right strategic direction and use internal capacities towards its attainment (Stead & Stead, 2014; Deepak & Jeyakumar, 2019).

The JetBlue Airways IPO Valuation has a strong brand image and a positive consumer perception in the market.

The JetBlue Airways IPO Valuation invests in research and development, which helps the company focus its new product development as well as marketing capabilities (Phillips & Moutinho, 2018).

The company has a strong financial revenue earning ability and enjoys high profits.

The JetBlue Airways IPO Valuation has a global distribution network, which is strong and has allowed it to enjoy high business growth.

International expansion has allowed the JetBlue Airways IPO Valuation to understand diverse cultures and their knees – and engage in the localization of its product portfolio (DuBrin, 2013).

The JetBlue Airways IPO Valuation is criticized for high prices for its product portfolio.

The company has suffered negative PR owing to the recall of some of its products which were faulty.

Despite engagement with advanced technology, JetBlue Airways IPO Valuation continues to use manual systems internally, which leads to time ineffectiveness (Abratt & Bendixen, 2018).

The JetBlue Airways IPO Valuation has an organizational culture that is resistant to change and, as a result, exhibits slow adaptation to new trends.

The product design for the JetBlue Airways IPO Valuation’s offerings is imitative.

The JetBlue Airways IPO Valuation has undifferentiated products in its portfolio with respect to the competition (Phillips & Moutinho, 2018; Baines, Fill, & Rosengren, 2017).

Opportunities

The JetBlue Airways IPO Valuation has the opportunity to expand to developing and emerging economies.

The JetBlue Airways IPO Valuation can develop outsourcing partnerships to further maintain cost-effectiveness.

The JetBlue Airways IPO Valuation can also engage in green production and work towards environmental sustainability (Stead & Stead, 2014; Lasserre, 2017).

The JetBlue Airways IPO Valuation can also develop strategic partnerships and alliances to facilitate business growth and development.

Target niche markets, and develop new products.

The JetBlue Airways IPO Valuation can benefit from the evolving media trends for marketing purposes – including using social media content creation to target new consumer groups (Varadarajan, 2015; Wilson, 2018).

The JetBlue Airways IPO Valuation is facing high competition.

The JetBlue Airways IPO Valuation is also experiencing high imitation of its products.

The JetBlue Airways IPO Valuation faces threats from the increased price volatility of raw materials as well.

The unstable government and government policies are also a threat to the operations of the JetBlue Airways IPO Valuation- especially internationally.

Slow change adaptation may lead the JetBlue Airways IPO Valuation to become an industry laggard (Anthony, 2021; Abratt & Bendixen, 2018).

Marketing mix

The product offerings by the JetBlue Airways IPO Valuation maintain consistently high quality.

The JetBlue Airways IPO Valuation engages in brand-building activities to ensure that its product and service offerings are well received by the target audience (Chernev, 2018).

Brand-building activities build positive associations for JetBlue Airways IPO Valuation and lead to repeat purchases as well as high consumer loyalty.

JetBlue Airways IPO Valuation ensures that its products are available in different SKU sizes to cater to the needs of different groups within its target audience.

The JetBlue Airways IPO Valuation also offers a warranty for its products (Khan, 2014).

The JetBlue Airways IPO Valuation ensures competitive pricing in the industry among the high number of market players.

For new products, the JetBlue Airways IPO Valuation maintains an introductory pricing strategy to encourage trials and purchases (Kareh, 2018).

For its star products, the company maintains penetrative pricing strategies to allow maximum trial.

For mature products, the JetBlue Airways IPO Valuation engages in aggressive and competitive pricing.

The JetBlue Airways IPO Valuation offers regular discounts to appeal to consumers, clear stocks, as well as for increasing footfall (Išoraitė, 2016).

JetBlue Airways IPO Valuation ensures that all its product offerings are highly accessible.

The JetBlue Airways IPO Valuation places products in physical retail setups like supermarkets and hypermarkets.

The JetBlue Airways IPO Valuation also places products with e-tailers such as amazon so consumers can easily access the products (Iacobucci, 2021).

The JetBlue Airways IPO Valuation also has an online system on its website for managing orders placed directly with the company.

The JetBlue Airways IPO Valuation has a strong distribution network, as well as competent and quick consumer service. (Kareh, 2018; Abratt & Bendixen, 2018).

The JetBlue Airways IPO Valuation uses traditional promotional platforms of television to reach the masses with its product portfolio.

The JetBlue Airways IPO Valuation also engages in radio and print promotional activities and advertisements (Deepak & Jeyakumar, 2019).

The JetBlue Airways IPO Valuation also uses social media to reach out to its audiences and influence them.

The JetBlue Airways IPO Valuation has developed expertise in interesting and relevant content creation, which attracts its primary as well as secondary target consumer groups (De Mooij, 2019).

The JetBlue Airways IPO Valuation frequently uses influencers to create a positive buzz and hype regarding its products, as well as to ensure high reach.

All promotional content is integrated and uses emotional appeals to create a lasting relationship with the consumers (Chernev, 2018).

The JetBlue Airways IPO Valuation has a strong global presence and strong business development capabilities.

The JetBlue Airways IPO Valuation focuses on research and development internally to identify market gaps and demands.

The JetBlue Airways IPO Valuation makes use of AI in its production operations and marketing functions to increase cost efficiency as well as affectivity (Dimitrieska, Stankovska, & Efremova, 2018).

The JetBlue Airways IPO Valuation engages and invests in acquiring advanced and progressive technology for operational efficiency. (Joyce, 2022).

The JetBlue Airways IPO Valuation has a strong retail setup and a strong distribution network across the globe (Gillespie & Swan, 2021; Chernev, 2018).

The JetBlue Airways IPO Valuation has access to unique raw materials, which helps it maintain high quality as well as differentiation in its product offerings.

The JetBlue Airways IPO Valuation holds special patents and licenses for manufacturing processes, as well as for being able to manufacture off-site in other countries (Grewal & Levy, 2021).

The JetBlue Airways IPO Valuation undertakes and participates in sustainable and eco-friendly manufacturing processes.

The JetBlue Airways IPO Valuation has also developed a green packaging solution for its product offerings and portfolio (Gillespie & Swan, 2021).

The leadership within the JetBlue Airways IPO Valuation is visionary and charismatic.

The organizational culture within JetBlue Airways IPO Valuation is robust, innovative and creative.

The organizational culture is based on the unique values, and implementation of the same – including transparency, honesty, and commitment (Groucutt & Hopkins, 2015).

The human resource management policies within the JetBlue Airways IPO Valuation support employee development and engagement – leading to high employee satisfaction and high employee morale (Machado, 2019; Anthony, 2021).

The compensation framework within the JetBlue Airways IPO Valuation is advanced and focuses on extrinsic as well as intrinsic drivers for employee performance.

The JetBlue Airways IPO Valuation enjoys high brand equity based on consistently high deliverance of product quality (Hitt, Miller, Colella, & Triana, 2017; Grewal & Levy, 2021).

The technical infrastructure within the JetBlue Airways IPO Valuation comprises new and advanced technology as well as network development to support its operations (Griffin, 2021)

The JetBlue Airways IPO Valuation has access to advanced physical infrastructure as well which helps support its technical advancements, as well as its manufacturing and related operations (Valeri, 2021)

The international exposure that the JetBlue Airways IPO Valuation has received owing to its expansions has allowed it to develop and apply innovation as well as new knowledge for improving existing processes and schedules within the company (Hitt, Miller, Colella, & Triana, 2017; Abratt & Bendixen, 2018; Valeri, 2021).

Value chain

The core capabilities and strengths of the JetBlue Airways IPO Valuation have enabled it to overcome obstacles and challenges and achieve its strategic goals and targets.

The core strengths and competencies of JetBlue Airways IPO Valuation form an important part of the company’s value chain (Chernev, 2018; Anthony, 2021).

Primary activities

JetBlue Airways IPO Valuation works directly and owns part of its operations in the value chain.

The JetBlue Airways IPO Valuation also works through different third parties as well as contracts with other parties for managing operations in other countries (Anthony, 2021).

For inbound logistics, the JetBlue Airways IPO Valuation ensures that all raw materials are transferred to warehouses and manufacturing sites in a timely fashion using company-owned transportation.

The JetBlue Airways IPO Valuation manages its operations directly as well as through third parties.

The operations of the JetBlue Airways IPO Valuation are spanned in its hometown as well as conducted overseas at other locations (Deepak & Jeyakumar, 2019).

In offshore countries, the JetBlue Airways IPO Valuation manages operations through partners and agents – who look after distribution and marketing activities for the JetBlue Airways IPO Valuation.

The JetBlue Airways IPO Valuation engages in invested marketing activities – based on consumer and market research (Dimitrieska, Stankovska, & Efremova, 2018; Chernev, 2018).

The JetBlue Airways IPO Valuation also makes use of AI for its marketing and promotional activities.

The JetBlue Airways IPO Valuation regularly trains its employees to develop skills regarding consumer service.

The JetBlue Airways IPO Valuation has maintained strict policies regarding consumer service as well as ensuring high quality and increased customer satisfaction (Joyce, 2022).

Secondary activities

The JetBlue Airways IPO Valuation has a strong human resource management department, regulated by modern policies and practices.

The human resource management department at the JetBlue Airways IPO Valuation supports the organizational culture and the leadership through its various functions – such as hiring, training and compensation management (DuBrin, 2013).

The JetBlue Airways IPO Valuation makes use of advanced technology to support its operations and achieve strategic goals and targets (DuBrin, 2013; Joyce, 2022).

The advanced technology is acquired internationally (Iacobucci, 2021).

The JetBlue Airways IPO Valuation engages in regulated procurement with selected suppliers.

The JetBlue Airways IPO Valuation ensures its contracted suppliers provide consistently high-quality raw materials to maintain high quality for end consumers (Gillespie & Swan, 2021).

The JetBlue Airways IPO Valuation is used to resolve its managerial and strategic challenges using one of the following strategies.

The strategies recommended will allow the JetBlue Airways IPO Valuation to expand and develop, as well as manage its risks and challenges effectively.

Using these strategies, the JetBlue Airways IPO Valuation will also be able to remain competitive in the market.

Market development strategies

The JetBlue Airways IPO Valuation can engage in informative and emotional marketing to appeal to the target audience in the market and increase brand awareness.

The JetBlue Airways IPO Valuation can devise and run educational campaigns to help understand the importance of the product, and its need (Išoraitė, 2016).

The JetBlue Airways IPO Valuation can work with influencers and celebrities to help spread the message through social media as well as conventional media.

The JetBlue Airways IPO Valuation can use a team on the ground to interact with the target audience, brief them about the product and its benefits, and influence them positively towards purchase decisions. (Baines, Fill, & Rosengren, 2017).

Market penetration strategies

The JetBlue Airways IPO Valuation can increase its marketing spending and use emotional appeals to influence the target audience.

The marketing strategies should be focused on maximizing the reach of the brand's message and promise (Iacobucci, 2021).

The JetBlue Airways IPO Valuation is recommended to make its products accessible through an increased number of supermarkets and hypermarkets.

The JetBlue Airways IPO Valuation can also open its own retail setups to increase footfall and reach across different regions (Sahaf, 2019).

Product development strategies

The JetBlue Airways IPO Valuation is recommended to and can engage in market and consumer research for product development.

Encouraging innovation and discussion of new ideas within the JetBlue Airways IPO Valuation can also lead to rapid new product development (Varadarajan, 2015).

The JetBlue Airways IPO Valuation can also optimize the development of new products by making its manufacturing and testing processes more effective.

The JetBlue Airways IPO Valuation can also create innovation labs and labs for new product development and testing (Sahaf, 2019; Abratt & Bendixen, 2018).

Diversification strategies

The JetBlue Airways IPO Valuation can expand horizontally and add new product lines.

The JetBlue Airways IPO Valuation can also expand vertically and add new products to the existing product line

The diversification will allow the JetBlue Airways IPO Valuation to attract new consumer groups (De Mooij, 2019).

The diversification will also allow the JetBlue Airways IPO Valuation to increase its penetration and reach amongst existing consumers.

The JetBlue Airways IPO Valuation will be able to increase brand awareness through diversification as well (Iacobucci, 2021; Abratt & Bendixen, 2018).

The JetBlue Airways IPO Valuation needs to strategically align its resources for optimization and to achieve its strategic goals and targets. The JetBlue Airways IPO Valuation should continue to use its internal capabilities to realize new opportunities and for mitigating risks and weaknesses. In addition, the JetBlue Airways IPO Valuation should also make use of other strategic models to understand the managerial challenges that the organization faces and devise suitable strategies and actions for overcoming them. The leadership of the JetBlue Airways IPO Valuation will play a critical role in ensuring that the organization overcomes the challenges by focusing on the organizational culture and values, which will then impact the operations and performance at large.

Abratt, R., & Bendixen, M. (2018). Strategic marketing: Concepts and cases. New York, United States: Routledge.

Anthony, H. (2021). Understanding strategic management. New York: Oxford University Press.

Baines, P., Fill, C., & Rosengren, S. (2017). Marketing. New York, United States: Oxford University Press.

Buchanan, D., & Huczynski, A. (2019). Organizational behaviour. London: Pearson UK.

Chernev, A. (2018). Strategic marketing management. Berlin/Heidelberg, Germany: Cerebellum Press.

De Mooij, M. (2019). Consumer behavior and culture: Consequences for global marketing and advertising. Thousand Oaks, California: Sage.

Deepak, R., & Jeyakumar, S. (2019). Marketing management. New Delhi, India: Educreation Publishing.

Dimitrieska, S., Stankovska, A., & Efremova, T. (2018). Artificial intelligence and marketing. Entrepreneurship, 6(2), 298-304.

DuBrin, A. (2013). Fundamentals of organizational behavior: An applied perspective. Amsterdam, Netherlands: Elsevier.

Gillespie, K., & Swan, K. (2021). Global marketing. New York, United States: Routledge.

Grewal, D., & Levy, M. (2021). M: marketing. New York, United States: McGraw-Hill Education.

Griffin, R. (2021). Management. Boston, Massachusetts, United States: Cengage Learning.

Groucutt, J., & Hopkins, C. (2015). Marketing. London: Macmillan International Higher Education.

Hitt, M., Miller, C., Colella, A., & Triana, M. (2017). Organizational behavior. Hoboken, New Jersey, United States: John Wiley & Sons.

Iacobucci, D. (2021). Marketing management. Boston, Massachusetts, United States: Cengage Learning.

Išoraitė, M. (2016). Marketing mix theoretical aspects. International Journal of Research-Granthaalayah, 4(6), 25-37.

Joyce, P. (2022). Strategic Management and Governance: Strategy Execution Around the World. Oxfordshire United Kingdom: Taylor & Francis.

Kareh, A. (2018). Evolution of the four Ps: Revisiting the marketing mix. Retrieved June 2022, from Forbes: https://www.forbes.com/sites/forbesagencycouncil/2018/01/03/evolution-of-the-four-ps-revisiting-the-marketing-mix/

Khan, M. (2014). The concept of ‘marketing mix’and its elements. International journal of information, business and management, 6(2), 95-107.

Kotabe, M., & Helsen, K. (2020). Global marketing management. Hoboken, New Jersey, United States: John Wiley & Sons.

Lasserre, P. (2017). Global strategic management. London: Macmillan International Higher Education.

Machado, C. (2019). Organizational Behaviour and Human Resource Management. Berlin: Springer.

Phillips, P., & Moutinho, L. (2018). Contemporary issues in strategic management. London: Routledge.

Sahaf, A. (2019). Strategic marketing: Making decisions for strategic advantage. New Delhi, India: PHI Learning Pvt. Ltd.

Stead, J., & Stead, W. (2014). Sustainable strategic management. London: Routledge.

Valeri, M. (2021). Organizational studies: implications for the strategic management. Berlin, Germany: Springer Nature.

Varadarajan, R. (2015). Strategic marketing, marketing strategy and market strategy. AMS review , 5(3), 78-90.

Wilson, F. (2018). Organizational behaviour and work: a critical introduction. New York: Oxford university press.

Wunder, T. (2019). Rethinking strategic management: Sustainable strategizing for positive impact. Berlin: Springer Nature.

Warning! This article is only an example and cannot be used for research or reference purposes. If you need help with something similar, please submit your details here.

Related Article

PESTEL Analysis of JetBlue Airways IPO Valuation

Organizational Culture for JetBlue Airways IPO Valuation

Swot Analysis of JetBlue Airways IPO Valuation

76446 Students

can't be wrong

PHD Experts

Calculate Your Order

Approximately ~ 1 Page(S)

Total Price:

Our Guarantees

Plagiarism Free Report

100% Confidential

Free Revisions

Affordable Prices

Free Credit

Our free features

What is include.

Originality Report

Unlimited Edits

The Best Writer

Previous Articles

• Making-the-Case-1-Pestel-Analysis
• Joe-Smith-s-Closing-Analysis-B-2-Pestel-Analysis
• Joe-Smith-s-Closing-Analysis-A-Spanish-Version-3-Pestel-Analysis
• GMAC-The-Pipeline-4-Pestel-Analysis
• On-Writing-Teaching-Notes-Well-5-Pestel-Analysis
• Exxon-Corp-Trouble-at-Valdez-6-Pestel-Analysis
• Ashland-Oil-Inc-Trouble-at-Floreffe-A-7-Pestel-Analysis
• Ashland-Oil-Inc-Trouble-at-Floreffe-B-8-Pestel-Analysis
• Ashland-Oil-Inc-Trouble-at-Floreffe-C-9-Pestel-Analysis
• Ashland-Oil-Inc-Trouble-at-Floreffe-D-10-Pestel-Analysis

Next Articles

• Transport-Corporation-of-India-D-Business-Development-across-Divisions-1827-Pestel-Analysis
• Wisconsin-Central-Ltd-Railroad-and-Berkshire-Partners-Video-1828-Pestel-Analysis
• PlanetTran-1829-Pestel-Analysis
• MTR-Corporation-Limited-Measuring-Investor-Expectations-1830-Pestel-Analysis
• California-High-Speed-Rail-1831-Pestel-Analysis
• Emirates-Airline-A-Billion-dollar-Sukuk-Bond-Issue-1832-Pestel-Analysis
• Groupe-Eurotunnel-S-A-B-Restructuring-Under-the-Procedure-de-Sauvegarde-1833-Pestel-Analysis
• Air-Canada-Defined-Benefit-Pension-Plan-1834-Pestel-Analysis
• Wisconsin-Central-Ltd-Railroad-and-Berkshire-Partners-B-LBO-Associations-and-Corporate-Governance-1835-Pestel-Analysis
• Fraikin-SA-1836-Pestel-Analysis

Our Skilled Writers Team

PHD Writers

We are here to help. Chat with us on WhatsApp for any queries.

Sales Support

The marketplace for case solutions.

2012 Fuel Hedging at JetBlue Airways – Case Solution

At the beginning of 2012, Helena Morales, an equity analyst, was analyzing the jet fuel-securing technique of JetBlue Airways for the next season. Air carriers mix-hedged their jet fuel cost risk using different types of contracts on other oil items, for example, WTI and Brent oil. Consequently, air travel was subjected to basis risk. This year dislocations within the oil market brought a Brent-WTI premium. Jet fuel began to maneuver with Brent rather than with WTI as it previously did. Confronted with securing deficits, several U.S. air carriers began to alter their securing methods, leaving WTI. But, others are worried that the Brent-WTI premium may well be a temporary phenomenon. For 2012, would JetBlue keep using WTI because of its fuel hedging, or would it switch to a different one like Brent?

​Matos, Pedro Darden Business School ( UVAF1697 ) June 21, 2013

Case questions answered:

Case study questions answered in the first solution:

• Given the high price of jet fuel at the end of 2011, should JetBlue Airways hedge its fuel costs for 2012? And, if so, should it increase or decrease the percentage hedged for 2012?
• Focusing on the 2007 to 2011 period, which commodity (WTI crude oil, Brent crude oil, or heating oil) moved more closely to the price of jet fuel?
• Should JetBlue continue using WTI as an oil benchmark for its crude oil hedges or switch to Brent? Quantify your answer using the 2007 to 2011 historical data provided in case Exhibit 6.
• Helena Morales wants to backtest a WTI hedge versus a Brent hedge. She takes a monthly hedge position of 20 million gallons for 2012. This corresponds to a hedge totaling 240 million gallons, which is about a 45.7% hedge ratio if the annual gallons consumed stay flat at 525 million gallons. Assume (unrealistically) that JetBlue would use a simple futures hedge (note: the WTI and Brent exchange-traded futures contracts are for 1,000 barrels = 42,000 gallons). Use also the (unrealistic) assumption that futures are identical to a forward and that the current forward price is equal to the spot price of the commodity. Now use the 60 months of the 2007 to 2011 historical prices on jet fuel, WTI, and Brent to simulate what would have been the monthly jet fuel costs under three scenarios: (1) without a hedge; (2) with a WTI hedge; and (3) with a Brent hedge. Would any hedge have helped reduce fuel cost volatility?
• What risks are being hedged, and what risks are left unhedged?
• What does the time series of profit and loss (for the business) look like before and after the hedge?

Case study questions answered in the second solution:

• Given the high price of jet fuel at the end of 2011, should JetBlue hedge its fuel costs for 2012? And, if so, should it increase or decrease the percentage hedged for 2012?
• Helena Morales wants to backtest a WTI hedge versus a Brent hedge. She takes a monthly hedge position of 20 million gallons for 2012. This corresponds to a hedge totaling 240 million gallons, which is about a 45.7% hedge ratio if the annual gallons consumed stay at 525 million gallons. Assume (unrealistically) that JetBlue Airways would use a simple futures hedge (note: the WTI and Brent exchange-traded futures contracts are for 1,000 barrels = 42,000 gallons). Use also the (unrealistic) assumption that a future is identical to a forward and that the current forward price is equal to the spot price of the commodity. Now use the 60 months of the 2007 to 2011 historical prices on jet fuel, WTI, and Brent to simulate what would have been the monthly jet fuel costs under three scenarios: (1) without a hedge; (2) with a WTI hedge; and (3) with a Brent hedge. Would any hedge have helped reduce fuel cost volatility?

Not the questions you were looking for? Submit your own questions & get answers .

2012 Fuel Hedging at JetBlue Airways Case Answers

This case solution includes an Excel file with calculations.

You will receive access to two case study solutions! The second is not yet visible in the preview.

1. Introduction – 2012 Fuel Hedging at JetBlue Airways Case Study

During the lifetime of a business, many different risks could affect its overall value. Companies use insurance to protect themselves against unlikely events that could affect the value of their assets.

These losses in value are derived from damaging hazards such as catastrophes outside their ordinary course of business. Together, firms face many other dangers as part of their business operations (Berk & DeMarzo, 2011).

Corporations implement risk management skills to protect against corporate value-decreasing exposures, such as currency exchange rates, interest rates, and commodity prices; therefore, they increase their corporate market value.

For companies such as JetBlue Airways, excess volatility in the costs of the commodities they use and/or products can be the highest cause of risk to their profitability.

According to Matos (2017), JetBlue’s purchase of jet fuel represents almost 40% of the total operating expenses. To secure from these risks, the financial market provides multiple different instruments for hedging. Hedging involves contracts or transactions that provide the firm with cash flows that offset its losses from price changes (Berk & DeMarzo, 2011).

The purpose of this report is to advise JetBlue on its hedging strategy by looking at the current trend in the oil commodity-related prices and the value-adding that hedging could provide to JetBlue Airways’ market value. The remainder of the report proceeds as follows.

Section II introduces the theory of hedging and explains what futures and forwards are as hedging contracts. Section III discusses in detail if JetBlue should hedge in the following expected year of the case: 2012.

Moreover, as an analysis, the correlation of different oil commodities is shown together with a back-test on the profit and loss from different hedging scenarios.

Also, the JetBlue Airways time series before and after the hedges graphs are shown. Section IV compares the literature on corporate finance risk management with this case. Finally, section V concludes.

2. Hedging Theory

Hedging is a critical strategy to implement for listed companies for several reasons. It’s challenging to play out hedging strategies for all the possible risks deriving from reasonably significant business activity.

However, it is fundamental to protect the core business of a company by momentary speculation opportunities. For a company like that, opportunities are mainly derived from certain commodities that are physiologically necessary for the operating practice.

But risks to hedge for a company also come from foreign currency exchange rates or interest rates. Swings in prices of those mentioned commodities could indeed represent a loss in the value of the assets, which JetBlue Airways cannot ignore.

Companies should also decide to assume hedge positions towards the core risks of their business to protect their investors. Shareholders, who could also consider a hedge position on their own, could not have the necessary information about risks faced by the company or just the financial knowledge required to implement such an exceptional investment strategy.

Also, transaction costs represent quite a high barrier for the single investor to hedge their risk exposure privately. All these elements make the hypothesis of self-hedging shareholders impossible, in fact.

However, the main reason managers should hedge is that lowering the idiosyncratic risk of the company is a necessity they need to supply, providing several benefits the company should not go without in terms of risk transfer to better bearers.

In particular, categories of risk like the product or geographic risk, which an average investor could be easily protected from by an essential portfolio diversification, could represent a significant menace to a company. Finally, lowering the company’s tax liability could be a determinant factor for a manager to decide to hedge some of the core risks since insurance premiums are often tax-deductible.

Hedging aims to reduce the company’s inertia towards fluctuations in commodities prices, decreasing the risk associated with such fluctuations, and trying to fix a stable value to account for those assets. This technique is implemented in purchasing term contracts whose value is negatively correlated with commodity prices they are hedging from.

The basis is the difference between the spot price of the underlying commodity and the cost of term contracts. They do not necessarily vary by the same amount, so this difference (the basis indeed) may enhance or decrease, causing variable gains or losses depending on the hedged position.

The uncertainty regarding the value of the basis is defined as basis risk – or hedging risk – which is generally attenuated by computing the optimal variance hedge ratio. This, depending on the relationship between the variations of the two prices, allows us to adjust the hedge position and minimize the basis risk. This operation is called “tailing” and is perpetrated by multiplying the hedge ratio by the daily spot price to the futures price ratio (Hull, 2012).

Forward and Futures

Term contracts are typically divided into futures and forwards. The main difference between them is that futures are standardized and consequently more liquid and tradable on regulated markets.

Forwards contracts show more customized terms (they practically represent private agreements between two parties) and have one settlement date at the end of the contract. The benefit deriving from hedging with forwards is evident in that they are less exposed to the mentioned basis risk and don’t need any tailing operation due to their not being marked-to-market (traded and settled daily).

However, being sold over-the-counter, they include high…

Unlock Case Solution Now!

Get instant access to this case solution with a simple, one-time payment ($24.90).

After purchase:

• You'll be redirected to the full case solution.
• You will receive an access link to the solution via email.

Best decision to get my homework done faster! Michael MBA student, Boston

How do I get access?

Upon purchase, you are forwarded to the full solution and also receive access via email.

Is it safe to pay?

Yes! We use Paypal and Stripe as our secure payment providers of choice.

What is Casehero?

We are the marketplace for case solutions - created by students, for students.

• Predictive Analytics Workshops
• Corporate Strategy Workshops
• Advanced Excel for MBA
• Powerpoint Workshops
• Digital Transformation
• Competing on Business Analytics
• Aligning Analytics with Strategy
• Building & Sustaining Competitive Advantages
• Corporate Strategy
• Aligning Strategy & Sales
• Digital Marketing
• Hypothesis Testing
• Time Series Analysis
• Regression Analysis
• Machine Learning
• Marketing Strategy
• Branding & Advertising
• Risk Management
• Hedging Strategies
• Network Plotting
• Bar Charts & Time Series
• Technical Analysis of Stocks MACD
• NPV Worksheet
• ABC Analysis Worksheet
• WACC Worksheet
• Porter 5 Forces
• Porter Value Chain
• Amazing Charts
• Garnett Chart
• HBR Case Solution
• 4P Analysis
• 5C Analysis
• NPV Analysis
• SWOT Analysis
• PESTEL Analysis
• Cost Optimization

JetBlue: Prepare for Financing

• Finance & Accounting / MBA EMBA Resources

Next Case Study Solutions

• Malaysia Airlines (A) Case Study Solution
• Depreciation at Delta Air Lines and Singapore Airlines (B), Spanish Version Case Study Solution
• On the Use of Capital Efficiency Metrics Case Study Solution
• Delta Air Lines: The Latin America Contact Center Decision Case Study Solution
• 2012 Fuel Hedging at JetBlue Airways Case Study Solution

Previous Case Solutions

• Hong Kong Dragon Airlines Limited (B): Lease vs. Buy Decision Case Study Solution
• Working Capital: A Summary of Ratios by Industry Case Study Solution
• Trans-Share, Inc. Case Study Solution
• Air Berlin's IPO Case Study Solution
• Boeing 747X (A) Case Study Solution

Predictive Analytics

June 19, 2024

Popular Tags

Case study solutions.

Case Study Solution | Assignment Help | Case Help

Jetblue: prepare for financing description.

The CFO of JetBlue is trying to decide which of two financing proposals to pursue. A straight equity issue will dilute his principal shareholders' ownership, but seems like the safer alternative in an industry that is notorious for its high failure rate. On the other hand, a convertible debt alternative seems less dilutive, and cheaper, but brings with it an increased risk of default and financial problems. Which option should John Owen pursue?

Case Description JetBlue: Prepare for Financing

Strategic managment tools used in case study analysis of jetblue: prepare for financing, step 1. problem identification in jetblue: prepare for financing case study, step 2. external environment analysis - pestel / pest / step analysis of jetblue: prepare for financing case study, step 3. industry specific / porter five forces analysis of jetblue: prepare for financing case study, step 4. evaluating alternatives / swot analysis of jetblue: prepare for financing case study, step 5. porter value chain analysis / vrio / vrin analysis jetblue: prepare for financing case study, step 6. recommendations jetblue: prepare for financing case study, step 7. basis of recommendations for jetblue: prepare for financing case study, quality & on time delivery.

100% money back guarantee if the quality doesn't match the promise

100% Plagiarism Free

If the work we produce contain plagiarism then we payback 1000 USD

Paypal Secure

All your payments are secure with Paypal security.

300 Words per Page

We provide 300 words per page unlike competitors' 250 or 275

Free Title Page, Citation Page, References, Exhibits, Revision, Charts

Case study solutions are career defining. Order your custom solution now.

Case Analysis of JetBlue: Prepare for Financing

JetBlue: Prepare for Financing is a Harvard Business (HBR) Case Study on Finance & Accounting , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. JetBlue: Prepare for Financing is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. JetBlue: Prepare for Financing case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. JetBlue: Prepare for Financing will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

JetBlue: Prepare for Financing case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Finance & Accounting, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of JetBlue: Prepare for Financing, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The JetBlue: Prepare for Financing case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Finance & Accounting Solutions

In the Texas Business School, JetBlue: Prepare for Financing case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – JetBlue: Prepare for Financing

Step 1 – Problem Identification of JetBlue: Prepare for Financing - Harvard Business School Case Study

The first step to solve HBR JetBlue: Prepare for Financing case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Jetblue Dilutive is facing right now. Even though the problem statement is essentially – “Finance & Accounting” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Jetblue Dilutive, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the JetBlue: Prepare for Financing. The external environment analysis of JetBlue: Prepare for Financing will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in JetBlue: Prepare for Financing case study. PESTEL analysis of " JetBlue: Prepare for Financing" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with JetBlue: Prepare for Financing macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for JetBlue: Prepare for Financing

To do comprehensive PESTEL analysis of case study – JetBlue: Prepare for Financing , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact JetBlue: Prepare for Financing

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ JetBlue: Prepare for Financing ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Jetblue Dilutive is operating, firms are required to store customer data within the premises of the country. Jetblue Dilutive needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. JetBlue: Prepare for Financing has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Jetblue Dilutive in case study JetBlue: Prepare for Financing" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Jetblue Dilutive in case study “ JetBlue: Prepare for Financing ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Jetblue Dilutive in case study “ JetBlue: Prepare for Financing ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ JetBlue: Prepare for Financing ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Jetblue Dilutive can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at JetBlue: Prepare for Financing case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Jetblue Dilutive needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact JetBlue: Prepare for Financing

Social factors that impact jetblue: prepare for financing, technological factors that impact jetblue: prepare for financing, environmental factors that impact jetblue: prepare for financing, legal factors that impact jetblue: prepare for financing, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: jetblue: prepare for financing case study solution.

• sales & marketing ,
• leadership ,
• corporate governance ,
• Advertising & Branding ,
• Corporate Social Responsibility (CSR) ,

Amanda Watson

Leave your thought here

© 2019 Texas Business School. All Rights Reserved

USEFUL LINKS

Follow us on.

Subscribe to our newsletter to receive news on update.

Dark Brown Leather Watch

$200.00 $180.00

Dining Chair

$300.00 $220.00

Creative Wooden Stand

$100.00 $80.00

2 x $180.00

2 x $220.00

Subtotal: $200.00

Free Shipping on All Orders Over $100!

Wooden round table

$360.00 $300.00

Hurley Dry-Fit Chino Short. Men's chino short. Outseam Length: 19 Dri-FIT Technology helps keep you dry and comfortable. Made with sweat-wicking fabric. Fitted waist with belt loops. Button waist with zip fly provides a classic look and feel .

• Order Status
• Testimonials
• What Makes Us Different

The JetBlue Story Harvard Case Solution & Analysis

Home >> Operations Management Case Studies >> The JetBlue Story

Background and Introduction:

JetBlue Airways Corporation started from scratch in 1999 and officially started its business operations in 2000. The company is known to be an airline with low-fare charges along, high quality for customers and the differentiated product. The target market of the company is the large metropolitan areas where the plane fares are high on average. Most of the United States airlines adopts and follows the Hub and Spoke route system, however; JetBlue Airways follows point to point route system.

JetBlue Airways is one of the most successful airlines in the United States. The founder of the company, David Neeleman wants JetBlue Airways to be the one that can provide unique services and offer a treasured flying experience to their customers. The company wants to build long-term relationships with their customers backing order to make them to keep on coming back.

Staying successful and competitive in the airline industry is not an easy task as only two companies are in still operation among the companies that entered in the airline business during 80s. JetBlue took a great start with good human resource and management team. The company also made a good decision regarding resource allocation and budgeting of the company. In addition to that, the company also made timely and wise decisions related to the buying and selling of planes, technological advancements and other business decisions as well. By the end of 2002, the company announced their IPOs that were for the common stock. As of now, the company is engaged in operating more than 180 flights per day.

The goal and vision of JetBlue Airways are to be a leader in the airline industry by providing low-fare airline services to the customers along with maintaining high quality customer service and differentiated product.

Problem identification:

The company has successfully maintained its brand image and differentiated itself as a high customer oriented organization. For further growth and success, the company needs to take some measures to stay competitive in the industry and to attain speedy achievement and growth. It is a fact that staying competitive in the airline business is not an easy task, therefore; competitors of JetBlue Airways like United is working hard to prove it as successful airline. For JetBlue Airways, their vision is not only to be a successful organization but they also want to make a culture that is based on value and commitment to the organization. The company needs to expand in order to grow and make itself more profitable.

Strategic/Competitive

One of the major strengths of the company lies in its technology. The company has made the best use of technology to diminish the costs and expenses of the company as a selling point to their clientele. Further, the company has implemented a ticket less system which eventually reduces the cost of paper. The concept of ticket less system provided expediency and simplicity to the customers as well. The company has finished the concept of the paper ticket as customers do not have to worry about putting their tickets in the bag before leaving for the airport.

In addition to that, the company has found other ways too in order to make reductions in their costs. They give much importance to their workforce, therefore; the employees are happy and content with the company even with low salaries. The company has used the same planes and use point-to-point system for running flights that helps the company to switch pilots and to save the fuel as well as money that in turn decrease the overall cost of the company.

Another major strength of the company is the prime focus on continuous innovation. Recently the company has installed cameras in their planes and other facilities like direct TV, comfortable leather seats and internet are the ways to satisfy customers.

Weaknesses:

One of the major weaknesses of the company is the inadequate number of routes accessible to the customers. However, routes are not a major problem, but the number of places offered to fly for the customers is a major problem. JetBlue Airways does not provide many routes, therefore; customers have to switch to other competitors in order to reach many destinations. Further, the company has been criticized for its frequent changes in the flier program as well.

Despite the fact that most individuals recognize JetBlue Airways, the organization is still not as large as it needs to be. In the light of this, the airline has some difficulty in getting entryway openings at huge runways. They likewise don't fly all around yet, so their target business is more diminutive than other airlines transporters. One of the greater shortcomings is that some individuals just consider that JetBlue Airways is a shabby start-up airline.

Opportunities:

Opportunities are the chances which a company may acquire to gain competitive advantage. As discussed above, it is difficult for the airline companies to stay competitive in the airline industry, therefore; JetBlue Airways can take it as an opportunity and grab their customers. By doing this, the company will be able to achieve recognition for its brand towards more.................................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

This case tells the story of JetBlue Airways since its inception in 2000 until 2004. The case provides detailed information on the business model, JetBlue and the causes of success. It can be used during maintenance operations or strategy. "Hide by Elliott N. Weiss, Marlene Friesen Source: Darden School of Business 15 pages. Publication Date: November 23, 2004. Prod. #: UV3543-PDF-ENG

Related Case Solutions & Analyses:

Hire us for Originally Written Case Solution/ Analysis

Like us and get updates:.

Harvard Case Solutions

Search Case Solutions

• Accounting Case Solutions
• Auditing Case Studies
• Business Case Studies
• Economics Case Solutions
• Finance Case Studies Analysis
• Harvard Case Study Analysis Solutions
• Human Resource Cases
• Ivey Case Solutions
• Management Case Studies
• Marketing HBS Case Solutions
• Operations Management Case Studies
• Supply Chain Management Cases
• Taxation Case Studies

More From Operations Management Case Studies

• Wal-Mart Stores Discount Operations
• Student Plays Fantasy Hockey (B)
• GE and the Industrial Internet
• AES Corporation (A): Global Sourcing Initiative
• Designing and Managing Service Processes Module
• Wal-Marts Response to Hurricane Katrina: Striving for a Public-Private Partnership
• Sustainability at Tetra Pak: Recycling Post-Consumer Cartons

Contact us:

Check Order Status

How Does it Work?

Why TheCaseSolutions.com?

Our Guarantees

Zero plagiarism, best quality, qualified writers, absolute privacy, timely delivery.

Interesting Fact

Most recent surveys suggest that around 76 % students try professional academic writing services at least once in their lifetime!

Allow Our Skilled Essay Writers to Proficiently Finish Your Paper.

We are here to help. Chat with us on WhatsApp for any queries.

Customer Representative

Jet Blue Case Study

Students also viewed

• Who we work with
• Join our team
• eGuides / white papers
• Case studies

28 August 2018 | Case study

JetBlue case study: Driving a rise in satisfaction levels by putting the customer first

The customer.

JetBlue is a low fare airline, mainly based at John F Kennedy Airport in New York, USA with corporate offices in New York, Utah and Florida. It commenced operations in 2000 and now serves over 100 destinations in the USA, Central America, South America and the Caribbean.

The airline transported more than 40 million passengers in 2017 and operates a fleet of almost 250 aircraft.

JetBlue was founded on the understanding that the customer would always be put first – a novel concept in an industry not always recognised for customer service. As the company has grown, a constant area of focus has been on ensuring that customers are effectively communicated with, particularly when unexpected travel disruptions occur.

An overview

The airline had previously taken steps to automate its management of schedule changes, with 78% of schedule change notifications cleared in minutes since adopting an innovative solution by 15below using the Queue Manager tool. Now it looked to expand its capabilities to stay connected with customers at every stage of their journeys; to inform and delight them and to lay the foundations for a smooth and stress-free experience.

Challenges and objectives

Challenges faced by JetBlue:

• Disruption communications were not automated or tailored to meet customers’ needs and ease their journeys
• Customers who missed a connecting flight when travelling on a multi-leg journey with JetBlue and a partner airline faced challenges making adjustments to their itineraries
• Travellers flying to/from Cuba required specific documents, resulting in pain points at the airport

To resolve the challenges it faced, JetBlue opted to set the following objectives:

• Overhaul the notification experience to generate an increase in Net Promoter Score
• Streamline the process for rebooking and issuing a new itinerary to customers who miss a connecting flight
• Working to provide customers travelling to Cuba with the required documents prior to departure

The solution

JetBlue has worked with 15below for a number of years, building a notifications strategy designed to ensure the customer is put first throughout their journey. Keeping customers informed from booking to travel day and beyond was key to this objective, so JetBlue and 15below worked together to devise an automated system guaranteed to ensure the timely provision of relevant details, advice and offers.

15below supported JetBlue in delivering optimum customer service in the following ways:

• Automating timely communications to relay news of changes to the flight itinerary, provide options and follow-up if the customer did not respond
• Communicating relevant details including terminal changes, baggage reminders, special services, peak travel reminders, gate information and more to make navigating the airport as stress-free as possible
• Offering apologies to customers affected by a delay or cancellation and a credit towards future travel

The results

JetBlue has seen improvements in customer experience scores and satisfaction levels.

The objectives have been met in the following ways:

• Positive, proactive communications during disruption periods were found to result in a rise in customer satisfaction. JetBlue’s Net Promoter Score increased by more than 100 points to +29.8 due to improved communications through email and crew member announcements at the airport
• A new communications team was set up in the airline’s Customer Experience Operations Centre. It sends all disruption notifications through the 15below platform so that customers have relevant information – including terminal details, baggage allowances and special services – on hand and do not need to queue to speak to a call centre operator or member of ground staff
• New templates created with 15below allow voice notifications to be sent to customers who have missed a connection directing them to specific crew members at their support centres who are specifically trained to assist
• An automated email notification was devised for customers travelling to Cuba allowing them to fill in documents prior to departure
• An apology email with attached credit was created and sent to disrupted customers before they land at their destination

“We have worked with 15below for many years and it has proved to be a fantastic partner for our business. 15below’s platform allows us to communicate with our customers in a variety of ways exactly when they need to hear from us and has led to improved communication with our customers, especially when unexpected travel disruptions occur.” Lori Fox, Manager Customer Experience Operations Centre, JetBlue

How can we help you?

More than 50 airlines, rail operators and travel companies already use 15below’s industry-leading range of advanced passenger communications. We help companies stay connected with their passengers at every stage of their journey. Our aim is always the same: To help customers get the right information to the right people at the right time.

Get in touch for a personalised product tour.

Other content you may be interested in

Case study: Helping JetBlue overcome the challenges of manual COVID-19 data collection

A review of JetBlue: What has the airline done to stand out amid the covid-19 crisis?

From 4 hours to 15 minutes: How Swoop used automation to efficiently deal with disruption

See how we can help you,  request an online demonstration

Products 

Customers 

Resources  

About 

Start using the 15below platform in a matter of weeks

Jobs at 15below

Privacy Policy

GET IN TOUCH

[email protected]

+44 1273 764230

X / Twitter

Company Registered in England No. 3945289