Jetblue competitive strategy

Reflect summary on the assigned readings. Identify what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding.

Also, provide a response to each of the following questions:

Suppose Procter & Gamble (P&G) learns that a relatively new startup company Method (www.method@home.com) is gaining market share with a new laundry detergent in West Coast markets. In response, P&G lowers the price of its Tide detergent from $18 to $9 for a 150-oz. bottle only in markets where Method’s product is for sale. The goal of this “loss leader” price drop is to encourage Method to leave the laundry detergent market. Is this an ethical business practice? Why or why not?
CHAPTER 6 Business Strategy: Differentiation, Cost Leadership, and Blue Oceans Chapter Outline Learning Objectives 6.1 After studying this chapter, you should be able to: Business-Level Strategy: How to Compete for Advantage LO 6-1 Differentiation Strategy: Understanding Value Drivers Define business-level strategy and describe how it determines a firm’s strategic position. LO 6-2 Product Features Customer Service Complements Examine the relationship between value drivers and differentiation strategy. LO 6-3 Cost-Leadership Strategy: Understanding Cost Drivers Examine the relationship between cost drivers and cost-leadership strategy. LO 6-4 Assess the benefits and risks of differentiation and cost-leadership strategies vis-à-vis the five forces that shape competition. LO 6-5 Evaluate value and cost drivers that may allow a firm to pursue a blue ocean strategy. LO 6-6 Assess the risks of a blue ocean strategy, and explain why it is difficult to succeed at value innovation. Strategic Position Generic Business Strategies 6.2 6.3 Cost of Input Factors Economies of Scale Learning Curve Experience Curve 6.4 Business-Level Strategy and the Five Forces: Benefits and Risks Differentiation Strategy: Benefits and Risks Cost-Leadership Strategy: Benefits and Risks 6.5 Blue Ocean Strategy: Combining Differentiation and Cost Leadership Value Innovation Blue Ocean Strategy Gone Bad: “Stuck in the Middle” 6.6 Implications for Strategic Leaders 192 rot6128x_ch06_190-229.indd 192 04/11/19 1:19 PM CHAPTERCASE 6 Part I JetBlue Airways: En Route to a New Blue Ocean? and improved upon many of SWA’s cost-reducing activities. It used just one type of airplane (the Airbus A-320) to lower the costs of aircraft maintenance and pilot and crew training (but has since expanded its fleet). It also specialized in transcontinental flights connecting the East Coast IN 2019, JETBLUE AIRWAYS became the sixth-largest airline (from its home base in New York) to the West Coast (e.g., in the United States, following the “big four” (American, Los Angeles). This model, known as the point-to-point Delta, Southwest, and United) and Alaska Airlines, which model, focuses on directly connecting fewer but more beat out JetBlue in acquiring Virgin America in 2016. Jethighly trafficked city pairs, unlike American, Delta, and Blue offers approximately 1,000 flights daily, employs United’s hub-and-spoke system, which connects many dif22,000 crew members, and services 42 million customers ferent locations via layovers at airport hubs. JetBlue’s pointannually. to-point model lowers costs in mainly two ways: flying When JetBlue took to the skies in 2000, founder David longer distances and transporting more passengers per Neeleman set out to pursue a blue ocean strategy. This type flight than SWA, further of competitive strategy driving down its costs.