Topic > Jetblue Internal Analysis Essay - 734

Internal Analysis: The Question of Value? Being an LCC, JetBlue's operational choices should aim to reduce costs or increase its customers' willingness to pay. It can be shown that most of JetBlue's operational choices have the effect of reducing its costs. For example, flying only one type of airliner. JetBlue is able to reduce maintenance personnel training costs, reduce spare parts inventory, and reduce aircraft repair times. Flying focusing on long haul flights. JetBlue reduces each plane's time on the ground, the time it is not generating revenue and costing the company. Furthermore, JetBlue has chosen to avoid flight cancellations and thus reduce any costs or revenue losses associated with On the one hand, the introduction of shorter routes between large and medium-sized cities has introduced more cost-saving opportunities through a greater use of ground services and greater efficiency of the aircraft through potential greater expansion thanks to the wider network offered through the connections. However, choosing to use a different aircraft for the new routes reduced the cost benefit of standardized processes, especially because the single aircraft required JetBlue to build the aircraft's service capacity itself and also limited options for outsource all operations. Additionally, the new aircraft increases the complexity of flight processes and procedures, which increases the cost of training. This all adds to the overall cost and can potentially pose a challenge for JetBlue in maintaining a low-cost offering. The issue JetBlue does not have differential access to low-cost inputs to its process that is not accessible to other airlines. Furthermore, the LCC model was developed a long time ago, and airlines like Southwest have mastered it over the years. Typically, operational choices are based on attributes and capabilities that are not difficult to imitate. These choices are neither path-dependent nor randomly ambiguous nor socially complex and therefore not costly for competitors to imitate. The only exception derives from some political choices that make their imitation expensive. In targeting regional flights where policies favor JetBlue they limit imitation to only newer airlines that are not subject to such policies, but this may be a temporary advantage as policies can be adjusted to counteract this advantage. Organization issue? It has made some organizational choices consistent with its operational choices, such as hiring part-time, remote customer service agents to keep costs down. Similarly, pilots on short-haul E190 flights received less compensation than those flying the A320. This helps because it reduces the higher cost per available seat per mile of short haul