Jetblue
... What is JetBlue’s strategy? JetBlue’s strategy is a combination of cost leadership, product differentiation and market focus. o Cost leadership: JetBlue is aiming to provide the best fares at the lowest cost, putting emphasis on operations’ efficiency and cost per available seat mile. ... JetBlue has been able to sustain its culture applying the Attraction-Selection-Attrition model, laying the (few) people who did not fit with JetBlue’s culture. ... o Systems: JetBlue implemented systems that resulted in highly motivated people and low operation costs. Let’s first examine how JetBlue is structuring is operations costs comparing to a gold standard in this industry, namely Southwest Airline (see Exhibit 1 & 2). JetBlue’s low operations costs are driven by two key elements: Low salaries, wages and benefits; Low maintenance on aircrafts. Indeed, JetBlue is maximizing the productivity of its assets, including human assets. But how JetBlue is able to be so productive and still attract and motivate employees while the salaries are below the industry average? • Compensation JetBlue offers stock options to pilots, dispatchers and technicians. ... 360° performance evaluation: improved communication and helped monitoring both employees and management performance People at JetBlue are motivated, mainly because goal setting, positive reinforcement and values for equity are very high and aligned with the company’s culture and strategy, resulting in outstanding performance.