JET BLUE HUMAN RESOURCE STRATEGY Case Study Solution
The case illustrates the business strategy of the new Airline Jet Blue Airways that have entered the market recently with the clear strategy of identifying the gap in the market and then formulating a distinctive market strategy to fill the gap.In the current scenario, all airlines are serving the customers on high fares with different divisional classifications. However, the business plan of JetBlue airways aims to serve the market through cost-Leadership. In doing so, Neeleman- The founder of Jet Blue designed the business strategy of offering the cheap and inexpensive travel services to the customers with high-quality service and customer relationship.Since all the airlines offered the quality services to the business class, the company identified the gap and developed a uniform service level strategy for all customers with the lowest possible rates. However, Rhodes- the vice president of people department identified the need to develop a strong human resource department in order to sustain the business growth with the guarantee of uniform services to the customers in doing so, the company develop human resource strategies and compensation plans along with hiring guidelines to maintain the cultural fit with the employees.
Since Jet Blue airways have faced aggressive growth in the past 11 months, the management of the company has to devise such culture and organizational structure that sustains the values of the company throughout the human resource that will, in turn, help the Jet blue airways in maintaining its market position.
Keywords: Human Resource Practices, Jet Blue Airways, Cost Leadership, 360 Degree evaluation, Cultural Fit.
JET BLUE HUMAN RESOURCE STRATEGY Harvard Case Solution & Analysis
Introduction
Jet Blue Airways is a newly founded airline, initiated with an idea of serving the market with uniform service to every passenger without passenger class division, and through high customer service and low fares rates. David Neeleman, the founder of the Jet Blue Airways, stated the airlines with an aim to fill the market gap by offering high customer service at lowest possible rates. Since all airways including Southwest airlines cater the customer through passenger class division, the management of Jet Blue airways identified the trend in markets in travel industry along with the change in travel patterns of the customers to fit into the market and grab extensive market share.Over the next 11 months after its initiation, the company grew aggressively and tremendously, analyzing the pattern, Rhoades, the vice president of the Human resource director has to hire 500 more people in the coming year to fulfill the demand. However, the issue lies in maintaining and propagating the same core values throughout the organization on which the company has been established.
These core 5 values include Safety, integrity, care, fun and passion which makes the foundation of the human resources practices of the airlines.David believed that motivation leads to high performance, he along with his core team developed different hiring, training and development policies, organizational culture to maintain a productive culture in the organization.In addition, as the company invests greatly in the development of the employees, it urges to maintain the turnover rate to keep the pool of talented people on board. Also, in doing so, the company offers flexible compensation plans along with the medical and life insurance covered.All these initiatives are taken in an act to sustain the market position of the company while maintaining its competitive advantage.
However, the management of the Jet Air blue has to deal with the rapid increase in demand by elevating its functional and operational level along with the management and maintenance of the human resource values in the new employees.
Analysis
Question-1: Please identify (at least three) key success factors for JetBlue.
David initiated the business plan with an aim to pursue the differentiation strategy along with cost-leadership in it.The factors which made the airline successful are:
- Cost- the Company offered the high-level services at relatively low prices as compared to other market players.In addition, it designed a singular strategy in establishing the cost strategy. Under the pricing strategy, the company maintained same lowest possiblefares with no discounts or price cuts, In addition, the pricing remains same for all types of passengers.
- The company bought Airbus 321, which were more efficient in functionality and engraved more leg space. Since the company decided to buy the best airplanes, it opted air Bus, which created a conflict with the low-cost strategy and developed a strong brand image of offering high customer service at low prices.
- The company designed its paths and routes by analyzing the traveling frequency of the people to particular places.It enabled it to effectively utilize its resources (planes, cabin crew) that maintained the cost of operations and offered frequency and efficiency to the business activities.
- Also, the company has strong human resource, which enables it to manage and maintain its cost and service level in the market, allowing it to develop the competitive advantage in the market...................
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