Essay on Jetblue Case Study

1072 Words May 10th, 2008 5 Pages
JetBlue is a low-cost domestic airline in the United States that utilizes a combination of low-cost and value-added differentiation as its market strategy. From its launch in February 2000 to the time of the case, the airline grew to become the 11th largest player in the airline industry in a short span of 4 years.
Moving into the growth phase, JetBlue transitions from launch mode to an established product stage where it needs to focus on growth of scale. Executive leadership has determined that JetBlue must increase its existing route network by adding service to mid-sized markets. Vincent Stabile, Vice President of People for JetBlue Airways has a challenge: How must the organization understand the current organizational structure’s
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This CEO leads by example and shows his staff that he is serious about his belief in the brand and all things JetBlue. Once a staff member sees the CEO cleaning out the trash from the airplane one day, he or she may be willing the next day to pitch in and help the airplane pusher dig its vehicle out of the snow.
This equal playing field among this 6,000 person strong team creates an environment where each staff member has a vested interest in the success and sustainability of the business. This is shown as the marketing department insists that “there was no person better to promote JetBlue than its own crewmembers.”
The Style of the company is visible to all as crewmembers are the face of JetBlue and serve as brand ambassadors for the company by appearing in commercials and partaking in guerrilla marketing when a new route is launching or an existing route needs a boost.
The organizational growth of scale certainly poses challenges for Stabile; however, the existing organizational framework makes these challenge is surmountable. In considering Peters and Waterman’s proposed seven interconnected variables for organizational effectiveness – strategy, structure, skills, style, shared values, systems and staff – JetBlue is positioned to grow .
The strategy is established by executive leadership that the growth of scale in services will happen. The organizational structure is a modified hierarchy –

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