JetBlue Case
JetBlue is
an entrepreneurial success story. Founded by veteran industry executive, David
Neeleman, in 1999, the company has become a major player in the industry and
raised $158 million in an initial public offering. The company now faces the
challenge of growth. It has to grow and, at the same time, it has to maintain
its small company, entrepreneurial culture.
There are a variety
of different essays that can be derived from the reading, our discussion, your
research and the case at the end of the chapter. However, each essay
should begin with a thesis statement couched in the first paragraph, and should
employ your answers to the questions at the end of the case to support the
original thesis in the succeeding paragraphs. The final paragraph of the
essay should incorporate your general argument to restate the thesis.
It is assumed that at this time all students are now comfortable in their
ability to create an effective thesis statement.
Some of the possible responses to the questions at the end of the case are:
Case Question 1: How does being a
second mover contribute to JetBlue’s success? How does its second- mover
strategy present potential difficulties for the firm? Would a first mover
strategy have been better? Why or why not?
It is
important to note that JetBlue competes in the discount segment of the airline
industry. Toward this, it has successfully imitated SouthWest’s low cost
strategy that involves low labor costs, a single type of aircraft, a single
class of service, and lower-cost airports. Being a first mover involves
financial and market risks and often entails a huge amount of development
expense. It is typically inconsistent with a cost leadership strategy.
Case Question 2: Consider the
factors that lead to success for entrepreneurial firms. In your opinion, does
JetBlue have what it takes to be a success? Explain.
As the
chapter indicates, entrepreneurial firms need to identify their distinctive
competencies and leverage them whenever opportunities arise. JetBlue has
clearly identified and nurtured its distinctive competencies of being a
low-cost carrier that offers many customer benefits. As long as it plays to its
strengths, there is no reason to believe that JetBlue will not succeed.
Case Question 3: Consider the
factors that lead to failure for entrepreneurial firms. In your opinion, is
JetBlue likely to experience failure? Explain.
The chapter identifies reasons why
entrepreneurial firms fail: management incompetence or inexperience, neglect,
weak control systems, and inadequate capital. We do not see any evidence of
these factors at JetBlue and so it is unlikely that JetBlue suffers the same
fate as that of People Express.
If you would like to learn more about the essay format
please visit the "Guide to Grammar and Writing" on the "Links"
page of this site.
