Value Adding In A Business Case Study.

Customers’ service, which is the foundation principle of JetBlue, remains the main concern ofthis company. The founder of JetBlue realized that customer service was one of the greatestweak points associated with the aviation sector and decided to bank on it. He realized thatpassengers were becoming increasingly dissatisfied with airline travel as a result of increasedflight cancellation and delays, mishandled baggage, complicated cost structures, in addition tolack of customer care. Value Adding In A Business Case Study. These negative aspects and others associated with airline travel providedan opportunity for JetBlue (Bodouva & Bodouva, 2004).JetBlue is determined to establish itself as the most effective company as far as airlinetravel is concerned. It also seeks to offer a high quality experience, stressing on safety, security,customer service, reliability, in addition to reduced cost of travel. The principle competitivestrengths of the company are low operating costs, strong capital base, strong brand, andoutstanding company culture (Johnson and Weinstein, 2004).

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JetBlue has created an outstandingbrand that helps to make a distinction from its main competitors. The company has created astrong brand through its objective of being identified as a safe, reliable and low cost airline,which is highly focused on customer service, offers an enjoyable flying experience, and iscontinually developing.JetBlue is at a crossroad where other airlines have stalled before. Value Adding In A Business Case Study.However, its formula oflow cost, efficiency and high level of customer value has the capability of remaining undiluted asthe company continues to grow. JetBlue has established a very strong as well as vibrant customerservice-oriented company culture; a culture that is reinforced by enlightening the employeesconcerning the importance of customer service in addition to safety as well as the need to remainproductive and keep costs at a minimum. Establishment of a customer service oriented culture has earned the company traveler loyalty (Bodouva & Bodouva, 2004). It is among the fewcompanies that have sparked genuine customer enthusiasm. Ineffective communication betweencrewmembers is one of the major issues that negatively impact on customer base of the airlineindustry. JetBlue however, has established an open and honest communication systemconcerning delays especially when there is likelihood of interruption due to the weather ormechanical problems. The other competitive strength of JetBlue is its location. Its base is locatedin New York’s J. F Kennedy Airport, which offers access to a market of about 21 millionpotential customers.A strong management team is the other competitive strength of JetBlue. Its managementteam is made up of highly qualified as well as experienced members. Finally, integration ofadvanced technology in its operations has allowed for continued prosperity of the company.JetBlue was the first airline company to install cabin security cameras on all their aircrafts(Mard, Dunne, and Osborne, 2004). Even though JetBlue is a newly established airline, its focuson the people, contemporary aircraft, comprehensive personal service, excellent service andstate-of-art the management of revenue has made the company to standout among many.In addition to offering low travel costs with high style, friendly crewmembers whobelieve in service as well as a high quality of service, the company has developed a great deal ofvalue added services with sole intent of satisfying their customers’ needs. These include:comfortable leather seats, ticketless travel, free satellite TV on every seat (Mard, Dunne, andOsborne, 2004), a significant amount of legroom, no discount seats, airplane yoga cards,assigned seats, and a true loyalty program among many others.Value Adding In A Business Case Study. Aircrafts in addition to variousprograms established by the airline are designed in a unique manner so as to meet customers’ needs. JetBlue’s programs are flexible and transparent and act as a major customer attractionstrategy (Hitt, Ireland, and Hoskisson, 2009). JetBlue staff has realized that proper handling ofcustomers is a principle factor behind the success of any business. The management team ofJetblue believes that the flight experience provided to customers is the main reason whycustomers find it more preferable to other airlines (Bodouva & Bodouva, 2004).Contrary to other companies, all fares in JetBlue are one way. JetBlue also offerscustomer friendly services. Customers are compensated whenever flights are delayed for morethan four hours or for loss of luggage. The introduction of Jetblue Airways Bill of Rights, wherecustomers are compensated for any inconveniencies occurring as a result of technical problems isone of the major strategies that will insure continued development of JetBlue Airways (Johnsonand Weinstein, 2004). The awareness that customers will be compensated as a result ofinterruptions makes sure that crewmembers are committed to operate at high customer servicestandards. JetBlue airline crewmembers are committed to flights with limited interruptions andcancellations whenever possible. This makes sure that customers are satisfied with the servicesoffered by the company and that they understand in case inconveniences occur (Johnson andWeinstein, 2004).The ability of the company to keep costs low through limiting cabin services is the otherfactor that will ensure success of the company. Contrary to other airlines, JetBlue does not offermajor meals during flights. However, it does offer snacks, blueberry muffins and blue chips.JetBlue also controls flight costs by using point-to-point flights instead of hub-and-spoke (Mard,Dunne, and Osborne, 2004). The company has a large number of reservation staffers who workfrom home; has developed online booking programs; maintain a new flight of aircrafts; fly to major and smaller airports; make use of nonunion workforce; in addition to offering higherwages and profit sharing so as to keep employees from joining unions, all of which havecontributed to the growth and increased profitability of the company (Bodouva & Bodouva,2004).There are various potential challenges predicted to face the company in the future. One ofthem is that as crewmembers become more senior, they will claim more tangible benefits as wellas pensions. Unionization of the workforce, as stated by Mard, Dunne, and Osborne (2004), willresult in increase in labor costs which will in return result in reduced profits. The other challengeis that as the flight legs become longer, provision of meals to the customers will be necessary.Growth is also predicted to result in reduced involvement of the executive staff. However, themanagement team has made it clear that they are aware that growth comes with a price and thisis the reason why they are focused on maintaining customer loyalty in addition to customervalue.JetBlue aims at providing excellent services on all its operations based on the fact thatcustomers do not necessarily point to a single issue that gives them value, but to all servicesprovided by the company. Bodouva & Bodouva (2004) states that the value offered by JetBlue toits customers extends to its service-oriented culture, which is characterized by the high qualityservice provided by all employees to the customers. JetBlue Airways is a value basedorganization established on the principle that in order to be extraordinary on the outside, one hasto first be outstanding on the inside. All employees of JetBlue regardless of their position areregarded as crewmembers. The company hires highly qualified personnel and treats them in amanner it expects them to handle its customers. The company requires that all employees view the business from customers’ perspective. Viewing the business from a customers’ perspectiveenables the company to offer a superior system of delivery that continually evolves to satisfy theneeds as well as wants of its customer base (Johnson & Weinstein, 2004). The company holdsstrongly on to the belief that all activities within a prosperous organization are driven by value,which is the base for development of an organization. Instead of developing a mission statementthat employees and customers are not interested with, JetBlue emphasized on words that alloweverybody associated with the company to talk together. Talking together allows for sharing ofvalues, an aspect that makes decision-making much easier. Instead of controlling employees withsupervision and rules, JetBlue show employees how its decisions fit with corporate values.JetBlue is characterized by five major values: caring, safety, integrity, fun and passion.The company aims at propping-up compliance with all regulations, maintaining consistencyalong with high standards, maintaining respectful associations with customers and employees,embracing healthy balance between family and work, and taking responsibility for personal andcompany development in addition to ensuring safety of employees and customers (Hitt, Ireland,& Hoskisson, 2009). The company also aims at exhibiting honesty, trust along with mutualrespect in all aspect of the job, and prioritizing customers’ needs. JetBlue adds value to itsservices by creating enthusiasm for the job. The company always converts negativecircumstances into a positive customer experience. It also creates a friendly environment withintent of relieving customers of their tension. The company also adds value to customers’experience through humor.There are various elements that can be evaluated in order to determine the relationshipbetween customers and crewmembers in the airline industry so as to highlight its important to the airline. Value Adding In A Business Case Study.Some of these relationships include: responsiveness, assurance, reliability, tangibles andempathy. JetBlue crewmembers are reliable and possess the capacity to execute their dutiesaccurately. They are always willing to offer assistance to customers in times of need. Due to theirconfidence, JetBlue crewmembers are able to offer assurance to customers. They are also easilyapproachable. A very good example of empathy is whereby JetBlue chief executive officer,Neeleman, takes two flights weekly in order to interact with customers and hear first-handpassenger feedback (Bodouva & Bodouva, 2004). Neeleman apologizes on behalf of thecompany for all inconveniences that passengers may experience. Neeleman also serves snacksand assists passengers to keep their luggage safely on the overhead bins. JetBlue crewmembersare encouraged to serve customers in a friendly and courteous manner. Value Adding In A Business Case Study. Through instilling anorganizational culture, which promotes and also rewards friendly attitudes towards customers,the company has been able to have its crewmembers being friendly and courteous to itscustomers. The company makes it known to its employees that practicing courtesy towards eachother as well as towards the customers is one of the major reasons why they have their job. As aresult, the crewmembers have no problem with being friendly and courteous to their customers.Besides friendliness to their customers, crewmembers are friendly towards each other (Johnson& Weinstein, 2004).Crewmembers are not forced to treat their partners and customers well, since they alreadyknow the benefits of doing so. They listen to the grievances of customers and forward them tothe relevant authority for further evaluation. JetBlue has developed a mechanism through whichgrievances of customers are addressed promptly. JetBlue management team communicates allchanges to the company’s mode of operation to crewmembers, who in turn communicate them tothe customers (Bodouva & Bodouva, 2004). The issue of traveling cost is addressed with high transparency, and personal requests made by customers are attended to with extreme caution.JetBlue crewmembers are considered the most helpful within the airline industry. They are committed to conducting themselves in a fair, honest, and transparent manner in addition toproviding reliable information to their customer on matters relating to environment and socialresponsibility. As a result of working as a team, JetBlue crewmembers are able to effectivelyhandle various issues that may adversely affect their customers (Hitt, Ireland, & Hoskisson,2009). JetBlue crewmembers strive to make this airline one of the most efficient in the industry.A major motivation of the crewmembers is the notion that dissatisfaction to the customers cangreatly derail their performance towards achieving their principle objectives.  Value Adding In A Business Case Study.Customers aretreated in an equal manner regardless of their social and economic status.Even though JetBlue is experiencing tremendous growth, the company is not contented.The management team realizes that it is only as good as its last appearance. Due to that fact, thecompany is committed to dealing effectively with all issues that may negatively impact oncustomers’ experience. In order to guarantee continued growth and success, the managementteam has come up with a strategy focusing on three main goals: people, performance andprosperity (Johnson & Weinstein, 2004). This strategy is grounded on the perception that solidoperating performance is driven by great people and as a result, continued prosperity isexperienced. The future of JetBlue is committed to offering the best airline experience,continually striving to go beyond expectations and build on the loyalty of the brand.

Conclusion

It can therefore be concluded that in order to prosper in business, the product or theservice provided must be of value on its own and must posses the capacity to stand on its own.JetBlue airways is one of the companies that have embarked on value adding in order to attractas well as retain more customers with intent of increasing profitability. JetBlue has establisheditself as the most effective company as far as airline travel is concerned due to the fact that itfocuses on satisfying customers’ needs through establishment of highly competent customerservices. Even though JetBlue is at a crossroad where other airlines have stalled before, itsformula of low cost, efficiency and high level of customer value has the capacity to remainundiluted as the company continues to grow. JetBlue has established a very strong as well asvibrant customer service-oriented company culture; a culture that is reinforced by enlighteningthe employees concerning the importance of customer service in addition to safety as well as theneed to remain productive and keep costs at a minimum. The ability of the company to keep thecosts low through limiting cabin services is the other factor that ensures success of the company.JetBlue is characterized by five major values: caring, safety, integrity, fun and passion. JetBluecrewmembers are considered the most helpful within the airline industry. Value Adding In A Business Case Study. They are committed toconducting themselves in a fair, honest, and transparent manner in addition to providing reliableinformation to their customer on matters relating to environment and social responsibility.JetBlue crewmembers strive to make this airline one of the most efficient in the industry.

References

Bodouva N. & Bodouva J. (2004). Case 9: Jetblue airways-adding value.doi:10.1201/9780203501498.bmatt9Hitt M., Ireland R., & Hoskisson R. (8thed.). (2009).Value Adding In A Business Case Study.Strategic management: Competitivenessand globalization: Concepts & cases. Cengage Learning.Helbig, Dian. (2007).What does value add mean?Retrieved fromhttp://www.sideroad.com/Sales_Techniques/value-add-sales.htmlHolloway S. (3rded.). (2008).Straight and level: Practical airline economics.Aldershot: Ashgate Publishing, Ltd.Johnson W. & Weinstein A. (2nded.). (2004).Superior customer value in the new economy:concepts and cases.CRC Press.Mard M., Dunne R., and Osborne E. (2004).Driving your company’s value: Strategicbenchmarking for value. New Jersey: John Wiley and Sons.August 26, 2010 from http://www.crcnetbase.com/doi/abs/10.1201/9780203501498.bmatt9Hitt M., Ireland R., and Hoskisson R., (edn 8), (2009),Strategic management: competitiveness and globalization: concepts & cases, ISBN 0324655592: Cengage Learning Holloway S., (edn 3), (2008),Straight and Level: Practical Airline Economics, ISBN0754672565: Ashgate Publishing, LtdJohnson W., and Weinstein A., (edn 2) (2004),Superior customer value in the new economy:concepts and cases, ISBN 1574443569: CRC PressMard M., Dunne R., and Osborne E., (2004),Driving your company’s value: strategicbenchmarking for value, ISBN 0471648558: John Wiley and SonsSideroad, (2007),What Does Value Add Mean?Retrieved on August 26, 2010 fromhttp://www.sideroad.com/Sales_Techniques/value-add-sales.html. Value Adding In A Business Case Study.