Porter’s generic strategies fit how Jet Blue positioned itself

by | Oct 18, 2024 | Essays

Which of Porter’s generic strategies fit how Jet Blue positioned itself?
What are Porter’s generic strategies? See slide 21 of Lecture 2.
Find evidence in the case study that suggests that either of these strategies is used by JetBlue.
Has JetBlue made a clear choice for either of these strategies? Justify your answer.
What choices has JetBlue made in their value proposition? (use Lecture 2 slide 23 for support)
Find evidence in the case study that shows these choices were made by JetBlue.
Avoid being too specific, too detailed in your description of the three parts of the value proposition. Stay “high level”, more general.
What do you think are the implications of these choices for JetBlue, focusing on some customers and not on others?
What choices has Jet Blue made in the activities in their value chain? (What does the company do? What activities have they put in place at all levels of the firm?)
Identify and list examples of activities that JetBlue has implemented for each value chain section (from Firm Infrastructure to After-Sales Service – see Lecture 2 slides 25-27 for support).
Highlight where you found this evidence in the case study document!
Focus on where JetBlue has made specific choices in their value chain (e.g. not serving meals) and where they add most value/cut most costs
Are these individual activities in the value chain aligned with the choices made in the value proposition? Justify your answer.

JetBlue is intending to make changes: (a) remove rows of seats and (b) buy Embraer Airplanes. Do these changes align with the existing value proposition of JetBlue? Would you recommend these changes for JetBlue?

JetBlue’s Strategic Positioning

Porter’s Generic Strategies

Michael Porter’s generic strategies outline three competitive strategies that firms can adopt:

  1. Cost Leadership: This strategy involves offering products or services at a lower cost than competitors while maintaining comparable quality.  
  2. Differentiation: This strategy involves offering products or services that are perceived as unique or superior to those of competitors.
  3. Focus: This strategy involves targeting a specific market segment and tailoring products or services to meet their unique needs

JetBlue’s Strategic Positioning

Porter’s Generic Strategies

Michael Porter’s generic strategies outline three competitive strategies that firms can adopt:

  1. Cost Leadership: This strategy involves offering products or services at a lower cost than competitors while maintaining comparable quality.  
  2. Differentiation: This strategy involves offering products or services that are perceived as unique or superior to those of competitors.
  3. Focus: This strategy involves targeting a specific market segment and tailoring products or services to meet their unique needs

JetBlue’s Strategy

JetBlue has primarily adopted a differentiation strategy. The airline has focused on providing a unique and superior customer experience, emphasizing low fares, free snacks and drinks, and a more relaxed and enjoyable travel experience.

Evidence from the Case Study

The case study provides several examples of JetBlue’s differentiation strategy:

  • Low fares: JetBlue has consistently offered lower fares than its competitors, attracting price-sensitive customers.
  • Free snacks and drinks: JetBlue provides complimentary snacks and drinks to all passengers, a feature that sets it apart from many other airlines.
  • Comfortable seating: JetBlue offers more legroom and comfortable seats than many other airlines.
  • Exceptional customer service: JetBlue has a reputation for providing excellent customer service, with friendly and helpful flight attendants.

Value Proposition

JetBlue’s value proposition is based on providing a high-quality, low-cost travel experience. The airline focuses on offering customers:

  • Affordable fares: JetBlue’s fares are generally lower than those of its competitors.
  • Exceptional service: JetBlue strives to provide excellent customer service, with a focus on friendliness and helpfulness.
  • Comfortable travel: JetBlue offers more legroom and comfortable seats than many other airlines.

Implications for Customers

JetBlue’s focus on low fares and exceptional service may appeal to a wide range of customers, including budget-conscious travelers, families, and business travelers. However, this strategy may not be suitable for customers who prioritize premium features or luxury amenities.

Value Chain Activities

JetBlue has implemented several activities along its value chain to support its differentiation strategy:

  • Procurement: JetBlue has negotiated favorable terms with suppliers to reduce costs and ensure a reliable supply of aircraft, fuel, and other essential resources.
  • Operations: JetBlue has invested in efficient operations to minimize costs and improve on-time performance.
  • Marketing and Sales: JetBlue has focused on building brand awareness and attracting customers through effective marketing and sales campaigns.
  • Customer Service: JetBlue has prioritized customer service and trained its employees to provide exceptional care to passengers.

Alignment with Value Proposition

JetBlue’s individual activities in the value chain are aligned with its focus on providing a high-quality, low-cost travel experience. For example, the airline’s focus on efficient operations and cost management helps to keep fares low, while its investment in customer service ensures a positive travel experience.

Proposed Changes

While removing rows of seats and buying Embraer airplanes may seem like a way to reduce costs and increase profitability, these changes could potentially undermine JetBlue’s differentiation strategy. Customers who choose JetBlue often do so because of the comfortable seating and spacious cabin. Removing rows of seats could compromise this aspect of the customer experience.

Additionally, the decision to buy Embraer airplanes may not be aligned with JetBlue’s long-term strategy. While these smaller planes may be more fuel-efficient, they may also limit JetBlue’s ability to expand its network and compete with larger airlines.

Therefore, I would recommend that JetBlue carefully consider the potential implications of these changes and evaluate whether they are consistent with its overall strategic goals.

 

 

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