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Essay / JetBlue - 1242
You know the feeling you get when you look at the person in the same designer outfit next to you, knowing you paid half as much for it? Choose jetBlue and that exceptional feeling will come back to you. Operating as a safe, reliable, value-added airline focused on customer service and high-quality travel, jetBlue's valuable mission is to compete as a low-cost carrier while integrating excellent customer service. Don't let their low prices and operational efficiency fool you, however. From leather seats to their customers' bill of rights, from courteous flight crews to entertainment consoles, jetBlue offers inexpensive and stylish service unlike other competitors. Cost LeadershipCompeting through its cost leadership, jetBlue spreads fixed costs across a large number of flights and seat miles, operates its company fleet is approximately twelve hours per day (the most industry longest), applies industry-leading planning services to minimize aircraft ground time and covers fuel orders optimally to incur fewer operating costs overall. Economies of scale exist through these skills, reducing costs and generating profit margins, while operating just two jet models (A320 and E190) expands the cost advantages of production and of aircraft maintenance thanks to the well-developed learning curve. Combining this “efficient asset utilization strategy” (Datamonitor, 2011) with jetBlue's core customer service competencies makes jetBlue a tough and sustainable competitor in the domestic airline industry (see Appendix HAS). In a recent letter to shareholders, Chairman David Barger announced: "We will continue to build a low-cost culture by maximizing asset utilization and executing efficient operations" (Letter to...... middle of paper ......capacity at jetBlue is answered by technological advancements of the time These advancements have challenged jetBlue's cutting edge and could potentially harm sustainability over time and end this advantage. Structural Company Outlook Although the company's business strategy may work currently, over time, comparable financials, ease of product imitation, and multiple core competencies will collapse planes and JetBlue's businesses Currently, JetBlue defines itself as a cost-leading competitor, but also differentiates its service with a unique business model. Attempting to bring in too many skills is both difficult and rarely successful. ending this integrated struggle involves honing a core competency and increasing investor support to amplify market share and provide a dominant competitive advantage..