Jetblue Airways: Starting from Scratch - Case Analysis

1119 words 5 pages
Executive Summary
JetBlue Airways, the latest entrant in the airlines industry has gone through the initial stages (entrepreneurial and collectivity) of the organizational life cycle rapidly under the successful leadership of David Neelman. JetBlue Airways is currently in the formalization stage of the life cycle where in it needs to create procedures and control systems to effectively manage its growth. Also as it proceeds to grow further to reach the elaboration stage, JetBlue needs to continue to align itself with the environment in order to maintain its sustained growth.
JetBlue: Entrepreneurial Stage
David Neelman realized his vision of creating an airlines company that is focused on customer service by starting JetBlue. During
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These customized packages gave JetBlue an avenue to satisfy the employees thus enabling them to work in an environment filled with fun and passion. It also helped create a positive environment to keep the union out of the company thus enabling them to provide low cost service.
In addition, the vision of using technology to provide low cost service made them use computer technology for all the pre and post flight work done by the pilots thus avoiding paperwork and reducing the time to respond. Choice of Airbus A320 also helped them in achieving their vision because A320 was highly computerized and helped them to use technology for maintenance of the airplanes. Neelman wanted to differentiate JetBlue service from other airlines. The management team understood the needs of Differentiation Strategy and designed the organization to be learning and flexible.
JetBlue: Future Directions
The following diagram depicts JetBlue at the current stage and how effectively it has managed the growth so far. It also points out the future directions needed to effectively manage the further growth.

As JetBlue continues to grow, it is in the midst of transitioning from the collectivity stage to the formalization stage. This stage requires putting in place policies and procedures to improve coordination among the growing number of employees. Horizontal Linkage mechanisms need to be put in place through the use of information system, task