Four actions framework of blue ocean applied to jet blue
- 1. Blue Ocean Strategy on Jet Blue Case Study By Neil K. George SMBA- ITM EEC
- 2. The fouractions frameworkon blue ocean strategy to reduce, create, raise and eliminate industry practices to create a Blue Ocean fromthe industry Red Ocean. A New Value Curve Reduce Eliminate Create Raise FOUR ACTIONS FRAMEWORK.
- 3. Four actions Frame Work Applied to Jet Blue REDUCE: Well below industry standard. • Costly hub and spoke system avoided.( followed by United and American ). • Avoided travel agents ( average cost USD14 per ticket ) • Used only one type of aircraft Airbus 320 ( therefore had to service and maintain only one type of aircraft and avoided complications of service and maintenance for other type of aircrafts)
- 4. Four actions Frame Work Applied to Jet Blue Create: Somethings that are never offered by the industry. • Unique flying experience. ( individual TV monitors, choice of channels, leather seats, more legroom, direct routes and an affordable price. ) • Online ticket sales and reservation agents answer calls from home thus reducing ticket costs and avoiding overheads. • Paperless cockpit which equips pilots with laptops that speed up maintenance checks and turnaround times at gates.
- 5. Four actions Frame Work Applied to Jet Blue Raise: Factors which should be raised well above industry standards. • Flying experience. • Lower / Discounted / Affordable fares • Direct routes. • Industry leading high rate of on time arrivals.
- 6. Four actions Frame Work Applied to Jet Blue Eliminate: Factors which the industry takes for granted. • Flying experience is the same across the industry. • High Fares. • Hub and Spoke system. • Ticket bookings through travel agents. • Paper filled cockpits. • Different types of aircrafts need to be operated. • Profitability from the beginning.
- 7. Conclusion: The Four Actions Frame work of the Blue Ocean Strategy applied on Jet Blue case study shows that David Neelman’s and with his years of experience in the airline industry new exactly what to Reduce, Create, Raise and Eliminate which ensured that Jet Blue set the benchmark in the airline industry and broke all myths / practices that were taken as granted in the industry.