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JetBlue Airways IPO Valuation – Case Solution

In April 2002, the management of JetBlue Airways decided to price the IPO of the company's stock despite a bad period. It seeks to answer the question of what should the IPO price valuation for JetBlue Airways be.

​Michael J. Schill, Garth Monroe, Cheng Cui Harvard Business Review (UV2512-PDF-ENG) August 20, 2003

Case questions answered:

  • What is the Cost of Debt?
  • What are your assumptions and justifications for such?
  • What should the IPO price valuation for JetBlue Airways be?
  • Create a full financial valuation.

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JetBlue Airways IPO Valuation Case Answers

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Executive Summary – JetBlue Airways IPO Valuation

In July 1999, David Neeleman started JetBlue Airways, founded on the ideology of bringing “humanity back to air travel.” Despite the odds that 87 start-up airlines similar to theirs failed in the past 20 years, David was determined to make this work through his commitment to innovation in people, policies, and technology.

In search to make this work, JetBlue hired well-established individuals in the airline business to work in upper management positions for the company. Seeing the vision, investment firms such as Weston Presidio Capital, Chase Capital Partners, and Quantum Industrial Partners invested $130 million.

This large investment allowed JetBlue to grow fast early on. The company’s early success was due to Neeleman’s idea of fixing everything that wasn’t working for air travel. He made flights cheaper and applied luxuries such as leather seats and live TV, as well as flights to big metropolitan areas.

All in order to give passengers a good and affordable experience. After the horrific terrorist attacks on September 11th, 2001, JetBlue Airways adapted and overcame the situation flourishing in the market of low-fare airlines.

The company did so well that the discussion of taking the company public through an IPO was a real possibility that would be happening.

Critical Assessment

One advantage of JetBlue Airways going public would be the company’s cost of capital would shrink. An additional advantage would be the large inflow of equity to the company to pay back debt holders, along with the company asking for larger amounts of money from lenders.

Having more money would help the company’s growth, allowing them to compete with the top tier of low-fare airway companies by investing in what they see as an area they need to improve in.

There are positives in going public but also negatives too. A disadvantage to going public would be the control of JetBlue. Unless the owner has a large majority of the shares, the company could be at risk to an investor who could buy a significant portion of the stock, gaining more of a voice in the company through votes.

Another disadvantage would be that when JetBlue goes public, they will have to release all annual reports and accounting information to the public, allowing all their competitors insight into the way they operate financially. JetBlue Airways will also have to comply with a new set of rules that public companies have to follow.

Facts/Assumptions

There are a few effective methods for estimating the best share price for a new market entrant to go public in an IPO. These include the terminal value method, industry averages multiple approaches (based on selected peer groups), and an IPO estimate gleaned from Jet Blue’s financials exclusively.

Firstly, the terminal value method of valuation has many assumptions, such as growth rate, which will likely be found to be inaccurate in the future. Therefore, basing this calculator entirely on the free cash flows could yield an accurate estimation for the IPO.

In the second form of valuation, one must look at the leading and trailing EBIT values for JetBlue Airways and…

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JetBlue Airways IPO Valuation

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Jetblue airways ipo valuation description.

This case examines the April 2002 decision of JetBlue management to price the initial public offering of JetBlue stock during one of the worst periods in airline history. The case outlines JetBlue's innovative strategy and the associated strong financial performance over its initial two years. Students are invited to value the stock and take a position on whether the current $22-$24 per share filing range is appropriate. The case is designed to showcase corporate valuation using discounted cash flow and peer-company market multiples. The epilogue details the 67% first-day rise in JetBlue stock from the $27 offer price. With such a backdrop, students are exposed to one of the well-known finance anomalies--the IPO underpricing phenomenon--and are invited to critically discuss various proposed explanations.

Case Description JetBlue Airways IPO Valuation

Strategic managment tools used in case study analysis of jetblue airways ipo valuation, step 1. problem identification in jetblue airways ipo valuation case study, step 2. external environment analysis - pestel / pest / step analysis of jetblue airways ipo valuation case study, step 3. industry specific / porter five forces analysis of jetblue airways ipo valuation case study, step 4. evaluating alternatives / swot analysis of jetblue airways ipo valuation case study, step 5. porter value chain analysis / vrio / vrin analysis jetblue airways ipo valuation case study, step 6. recommendations jetblue airways ipo valuation case study, step 7. basis of recommendations for jetblue airways ipo valuation case study, quality & on time delivery.

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Case Analysis of JetBlue Airways IPO Valuation

JetBlue Airways IPO Valuation is a Harvard Business (HBR) Case Study on Finance & Accounting , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. JetBlue Airways IPO Valuation is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. JetBlue Airways IPO Valuation case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. JetBlue Airways IPO Valuation will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

JetBlue Airways IPO Valuation case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Finance & Accounting, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of JetBlue Airways IPO Valuation, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The JetBlue Airways IPO Valuation case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Finance & Accounting Solutions

In the Texas Business School, JetBlue Airways IPO Valuation case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – JetBlue Airways IPO Valuation

Step 1 – Problem Identification of JetBlue Airways IPO Valuation - Harvard Business School Case Study

The first step to solve HBR JetBlue Airways IPO Valuation case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Jetblue Invited is facing right now. Even though the problem statement is essentially – “Finance & Accounting” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Jetblue Invited, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the JetBlue Airways IPO Valuation. The external environment analysis of JetBlue Airways IPO Valuation will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in JetBlue Airways IPO Valuation case study. PESTEL analysis of " JetBlue Airways IPO Valuation" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with JetBlue Airways IPO Valuation macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for JetBlue Airways IPO Valuation

To do comprehensive PESTEL analysis of case study – JetBlue Airways IPO Valuation , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact JetBlue Airways IPO Valuation

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ JetBlue Airways IPO Valuation ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Jetblue Invited is operating, firms are required to store customer data within the premises of the country. Jetblue Invited needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. JetBlue Airways IPO Valuation has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Jetblue Invited in case study JetBlue Airways IPO Valuation" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Jetblue Invited in case study “ JetBlue Airways IPO Valuation ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Jetblue Invited in case study “ JetBlue Airways IPO Valuation ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ JetBlue Airways IPO Valuation ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Jetblue Invited can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at JetBlue Airways IPO Valuation case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Jetblue Invited needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact JetBlue Airways IPO Valuation

Social factors that impact jetblue airways ipo valuation, technological factors that impact jetblue airways ipo valuation, environmental factors that impact jetblue airways ipo valuation, legal factors that impact jetblue airways ipo valuation, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: jetblue airways ipo valuation case study solution.

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JetBlue Airways IPO Valuation Case Study solution

Introduction.

The current case solution is published by 247caseanalysis and focuses on JetBlue Airways IPO Valuation. The case presents an overview of the strategic and managerial issues that the JetBlue Airways IPO Valuation faces in the growth and development of the business. The case solution focuses on understanding the central issue(s) in the case. The case study solution then uses strategic tools and models to solve the case and makes strategic recommendations for the JetBlue Airways IPO Valuation (Abratt & Bendixen, 2018; Iacobucci, 2021).

The case study and the case solution for the JetBlue Airways IPO Valuation are intended to give a comprehensive and holistic perspective regarding real-world business situations and challenges to the reader. Like all HBS case studies, it is important for the reader to first read the case for the JetBlue Airways IPO Valuation. The proposed case study solution for the JetBlue Airways IPO Valuation has encompassed the needs of all stakeholders while addressing the central challenge effectively (Deepak & Jeyakumar, 2019).

External environment analysis

The JetBlue Airways IPO Valuation cannot directly influence the external environment. The JetBlue Airways IPO Valuation must ensure to assess and continually review the external environment to identify potential challenges and opportunities (Abratt & Bendixen, 2018). This is needed because:

The external environment is dynamic and keeps changing.

External environment factors and dynamics, directly and indirectly, influence JetBlue Airways IPO Valuation operations (Anthony, 2021).

PESTEL Analysis

The JetBlue Airways IPO Valuation needs political stability to maintain business development and growth globally.

The JetBlue Airways IPO Valuation must also pay heed to local and global taxation implications for operations carried on site, as well as in other countries.

The JetBlue Airways IPO Valuation is directly impacted by the policies and regulations devised by the governments in its host as well as home countries (Chernev, 2018).

Lower interest rates facilitate the JetBlue Airways IPO Valuation as it leads to increased instances of borrowing.

Lower interest rates also lead to increased consumer power, and increased demand for products of JetBlue Airways IPO Valuation (Deepak & Jeyakumar, 2019).

The operations and demand for JetBlue Airways IPO Valuation are directly influenced by the GDP and economic growth in the countries where it operates and exports (Buchanan & Huczynski, 2019).

Increased focus on education and higher literacy rates have allowed the JetBlue Airways IPO Valuation to benefit from a more skilled and talented labor pool.

The higher portion of the youth has also benefitted the JetBlue Airways IPO Valuation in creating a high demand for its products and services (Iacobucci, 2021).

Assessment of the population and consumer trends have allowed the JetBlue Airways IPO Valuation to refine its segmentation and targeting strategies – leading to improved positioning of its portfolio offering (De Mooij, 2019).

Technological

JetBlue Airways IPO Valuation has high internal innovation capabilities.

JetBlue Airways IPO Valuation invests in research and development for improved creativity and technological progress.

The JetBlue Airways IPO Valuation makes use of innovative and advanced technology to make its internal processes more efficient and work towards achieving economies of scale.

JetBlue Airways IPO Valuation also benefits from knowledge sharing through global operations and transfers technology internally (Baines, Fill, & Rosengren, 2017).

Environmental

The JetBlue Airways IPO Valuation follows and abides by environmental regulations imposed in various countries.

Consumers for JetBlue Airways IPO Valuation have rapidly adopted green lifestyles and green consumption.

Incorporating environmentalism into its strategic goals and direction has enabled the JetBlue Airways IPO Valuation to become more efficient in this resource allocation (Stead & Stead, 2014).

The JetBlue Airways IPO Valuation ensures to follow the equal employment and equal opportunity law.

Through the equal opportunity act and regulations, the JetBlue Airways IPO Valuation ensures that it does not discriminate against different groups in its HUMAN RESOURCE MANAGEMENT practices.

The JetBlue Airways IPO Valuation also ensures to abide by the health and safety regulations.

The JetBlue Airways IPO Valuation makes sure to follow regulations regarding employment contracts and employer responsibilities to ensure fair policy-making and high performance (Lasserre, 2017).

Porter Five Forces

Industry rivalry.

There is high competitiveness and rivalry in the industry.

The market is highly fragmented, which leads to increased competition for JetBlue Airways IPO Valuation.

The JetBlue Airways IPO Valuation faces industry rivals of various sizes and operations.

The competition for JetBlue Airways IPO Valuation is local as well as global in nature.

The increased rivalry in the industry ensures that all players, including JetBlue Airways IPO Valuation, offer high-quality products and services to consumers at competitive prices (Varadarajan, 2015).

The threat of new entrants

The threat of new entrants is moderate.

There are entry barriers such as government regulations and financial capital needed for setting up operations.

This ensures that only powerful players with high financial muscle enter the market where JetBlue Airways IPO Valuation is operating.

New entrants ensure that the JetBlue Airways IPO Valuation maintains its focus on competitiveness and high quality (Wunder, 2019; Abratt & Bendixen, 2018).

Threat of substitutes

The threat of substitutes is moderate to high.

There is direct well as indirect substitutes available for JetBlue Airways IPO Valuation offerings.

The high number of players and market fragmentation has led to the increased availability of substitutes for JetBlue Airways IPO Valuation products.

There are low switching costs for consumers between substitutes (Sahaf, 2019; Kotabe & Helsen, 2020).

Bargaining power of buyers

JetBlue Airways IPO Valuation operational a highly fragmented industry.

The bargaining power of the buyers is high.

Players, including JetBlue Airways IPO Valuation, do not have a retail setup (Phillips & Moutinho, 2018; Chernev, 2018).

Bargaining power of sellers

The bargaining power of suppliers is high in the industry where JetBlue Airways IPO Valuation operates.

There're numerous players in the industry, and suppliers have contracted with most of them.

The raw materials provided by suppliers are restricted, and limited owing to quality needs and benchmarks (Kotabe & Helsen, 2020; Joyce, 2022).

Internal environment analysis

The internal analysis allows an insight into the factors that JetBlue Airways IPO Valuation can directly influence. These factors and capabilities are used by the JetBlue Airways IPO Valuation to ensure that:

It is able to capitalize on the opportunities from the external environment.

It is able to mitigate risks and manage challenges and threats appropriately.

The JetBlue Airways IPO Valuation is able to set the right strategic direction and use internal capacities towards its attainment (Stead & Stead, 2014; Deepak & Jeyakumar, 2019).

The JetBlue Airways IPO Valuation has a strong brand image and a positive consumer perception in the market.

The JetBlue Airways IPO Valuation invests in research and development, which helps the company focus its new product development as well as marketing capabilities (Phillips & Moutinho, 2018).

The company has a strong financial revenue earning ability and enjoys high profits.

The JetBlue Airways IPO Valuation has a global distribution network, which is strong and has allowed it to enjoy high business growth.

International expansion has allowed the JetBlue Airways IPO Valuation to understand diverse cultures and their knees – and engage in the localization of its product portfolio (DuBrin, 2013).

The JetBlue Airways IPO Valuation is criticized for high prices for its product portfolio.

The company has suffered negative PR owing to the recall of some of its products which were faulty.

Despite engagement with advanced technology, JetBlue Airways IPO Valuation continues to use manual systems internally, which leads to time ineffectiveness (Abratt & Bendixen, 2018).

The JetBlue Airways IPO Valuation has an organizational culture that is resistant to change and, as a result, exhibits slow adaptation to new trends.

The product design for the JetBlue Airways IPO Valuation’s offerings is imitative.

The JetBlue Airways IPO Valuation has undifferentiated products in its portfolio with respect to the competition (Phillips & Moutinho, 2018; Baines, Fill, & Rosengren, 2017).

Opportunities

The JetBlue Airways IPO Valuation has the opportunity to expand to developing and emerging economies.

The JetBlue Airways IPO Valuation can develop outsourcing partnerships to further maintain cost-effectiveness.

The JetBlue Airways IPO Valuation can also engage in green production and work towards environmental sustainability (Stead & Stead, 2014; Lasserre, 2017).

The JetBlue Airways IPO Valuation can also develop strategic partnerships and alliances to facilitate business growth and development.

Target niche markets, and develop new products.

The JetBlue Airways IPO Valuation can benefit from the evolving media trends for marketing purposes – including using social media content creation to target new consumer groups (Varadarajan, 2015; Wilson, 2018).

The JetBlue Airways IPO Valuation is facing high competition.

The JetBlue Airways IPO Valuation is also experiencing high imitation of its products.

The JetBlue Airways IPO Valuation faces threats from the increased price volatility of raw materials as well.

The unstable government and government policies are also a threat to the operations of the JetBlue Airways IPO Valuation- especially internationally.

Slow change adaptation may lead the JetBlue Airways IPO Valuation to become an industry laggard (Anthony, 2021; Abratt & Bendixen, 2018).

Marketing mix

The product offerings by the JetBlue Airways IPO Valuation maintain consistently high quality.

The JetBlue Airways IPO Valuation engages in brand-building activities to ensure that its product and service offerings are well received by the target audience (Chernev, 2018).

Brand-building activities build positive associations for JetBlue Airways IPO Valuation and lead to repeat purchases as well as high consumer loyalty.

JetBlue Airways IPO Valuation ensures that its products are available in different SKU sizes to cater to the needs of different groups within its target audience.

The JetBlue Airways IPO Valuation also offers a warranty for its products (Khan, 2014).

The JetBlue Airways IPO Valuation ensures competitive pricing in the industry among the high number of market players.

For new products, the JetBlue Airways IPO Valuation maintains an introductory pricing strategy to encourage trials and purchases (Kareh, 2018).

For its star products, the company maintains penetrative pricing strategies to allow maximum trial.

For mature products, the JetBlue Airways IPO Valuation engages in aggressive and competitive pricing.

The JetBlue Airways IPO Valuation offers regular discounts to appeal to consumers, clear stocks, as well as for increasing footfall (Išoraitė, 2016).

JetBlue Airways IPO Valuation ensures that all its product offerings are highly accessible.

The JetBlue Airways IPO Valuation places products in physical retail setups like supermarkets and hypermarkets.

The JetBlue Airways IPO Valuation also places products with e-tailers such as amazon so consumers can easily access the products (Iacobucci, 2021).

The JetBlue Airways IPO Valuation also has an online system on its website for managing orders placed directly with the company.

The JetBlue Airways IPO Valuation has a strong distribution network, as well as competent and quick consumer service. (Kareh, 2018; Abratt & Bendixen, 2018).

The JetBlue Airways IPO Valuation uses traditional promotional platforms of television to reach the masses with its product portfolio.

The JetBlue Airways IPO Valuation also engages in radio and print promotional activities and advertisements (Deepak & Jeyakumar, 2019).

The JetBlue Airways IPO Valuation also uses social media to reach out to its audiences and influence them.

The JetBlue Airways IPO Valuation has developed expertise in interesting and relevant content creation, which attracts its primary as well as secondary target consumer groups (De Mooij, 2019).

The JetBlue Airways IPO Valuation frequently uses influencers to create a positive buzz and hype regarding its products, as well as to ensure high reach.

All promotional content is integrated and uses emotional appeals to create a lasting relationship with the consumers (Chernev, 2018).

The JetBlue Airways IPO Valuation has a strong global presence and strong business development capabilities.

The JetBlue Airways IPO Valuation focuses on research and development internally to identify market gaps and demands.

The JetBlue Airways IPO Valuation makes use of AI in its production operations and marketing functions to increase cost efficiency as well as affectivity (Dimitrieska, Stankovska, & Efremova, 2018).

The JetBlue Airways IPO Valuation engages and invests in acquiring advanced and progressive technology for operational efficiency. (Joyce, 2022).

The JetBlue Airways IPO Valuation has a strong retail setup and a strong distribution network across the globe (Gillespie & Swan, 2021; Chernev, 2018).

The JetBlue Airways IPO Valuation has access to unique raw materials, which helps it maintain high quality as well as differentiation in its product offerings.

The JetBlue Airways IPO Valuation holds special patents and licenses for manufacturing processes, as well as for being able to manufacture off-site in other countries (Grewal & Levy, 2021).

The JetBlue Airways IPO Valuation undertakes and participates in sustainable and eco-friendly manufacturing processes.

The JetBlue Airways IPO Valuation has also developed a green packaging solution for its product offerings and portfolio (Gillespie & Swan, 2021).

The leadership within the JetBlue Airways IPO Valuation is visionary and charismatic.

The organizational culture within JetBlue Airways IPO Valuation is robust, innovative and creative.

The organizational culture is based on the unique values, and implementation of the same – including transparency, honesty, and commitment (Groucutt & Hopkins, 2015).

The human resource management policies within the JetBlue Airways IPO Valuation support employee development and engagement – leading to high employee satisfaction and high employee morale (Machado, 2019; Anthony, 2021).

The compensation framework within the JetBlue Airways IPO Valuation is advanced and focuses on extrinsic as well as intrinsic drivers for employee performance.

The JetBlue Airways IPO Valuation enjoys high brand equity based on consistently high deliverance of product quality (Hitt, Miller, Colella, & Triana, 2017; Grewal & Levy, 2021).

The technical infrastructure within the JetBlue Airways IPO Valuation comprises new and advanced technology as well as network development to support its operations (Griffin, 2021)

The JetBlue Airways IPO Valuation has access to advanced physical infrastructure as well which helps support its technical advancements, as well as its manufacturing and related operations (Valeri, 2021)

The international exposure that the JetBlue Airways IPO Valuation has received owing to its expansions has allowed it to develop and apply innovation as well as new knowledge for improving existing processes and schedules within the company (Hitt, Miller, Colella, & Triana, 2017; Abratt & Bendixen, 2018; Valeri, 2021).

Value chain

The core capabilities and strengths of the JetBlue Airways IPO Valuation have enabled it to overcome obstacles and challenges and achieve its strategic goals and targets.

The core strengths and competencies of JetBlue Airways IPO Valuation form an important part of the company’s value chain (Chernev, 2018; Anthony, 2021).

Primary activities

JetBlue Airways IPO Valuation works directly and owns part of its operations in the value chain.

The JetBlue Airways IPO Valuation also works through different third parties as well as contracts with other parties for managing operations in other countries (Anthony, 2021).

For inbound logistics, the JetBlue Airways IPO Valuation ensures that all raw materials are transferred to warehouses and manufacturing sites in a timely fashion using company-owned transportation.

The JetBlue Airways IPO Valuation manages its operations directly as well as through third parties.

The operations of the JetBlue Airways IPO Valuation are spanned in its hometown as well as conducted overseas at other locations (Deepak & Jeyakumar, 2019).

In offshore countries, the JetBlue Airways IPO Valuation manages operations through partners and agents – who look after distribution and marketing activities for the JetBlue Airways IPO Valuation.

The JetBlue Airways IPO Valuation engages in invested marketing activities – based on consumer and market research (Dimitrieska, Stankovska, & Efremova, 2018; Chernev, 2018).

The JetBlue Airways IPO Valuation also makes use of AI for its marketing and promotional activities.

The JetBlue Airways IPO Valuation regularly trains its employees to develop skills regarding consumer service.

The JetBlue Airways IPO Valuation has maintained strict policies regarding consumer service as well as ensuring high quality and increased customer satisfaction (Joyce, 2022).

Secondary activities

The JetBlue Airways IPO Valuation has a strong human resource management department, regulated by modern policies and practices.

The human resource management department at the JetBlue Airways IPO Valuation supports the organizational culture and the leadership through its various functions – such as hiring, training and compensation management (DuBrin, 2013).

The JetBlue Airways IPO Valuation makes use of advanced technology to support its operations and achieve strategic goals and targets (DuBrin, 2013; Joyce, 2022).

The advanced technology is acquired internationally (Iacobucci, 2021).

The JetBlue Airways IPO Valuation engages in regulated procurement with selected suppliers.

The JetBlue Airways IPO Valuation ensures its contracted suppliers provide consistently high-quality raw materials to maintain high quality for end consumers (Gillespie & Swan, 2021).

The JetBlue Airways IPO Valuation is used to resolve its managerial and strategic challenges using one of the following strategies.

The strategies recommended will allow the JetBlue Airways IPO Valuation to expand and develop, as well as manage its risks and challenges effectively.

Using these strategies, the JetBlue Airways IPO Valuation will also be able to remain competitive in the market.

Market development strategies

The JetBlue Airways IPO Valuation can engage in informative and emotional marketing to appeal to the target audience in the market and increase brand awareness.

The JetBlue Airways IPO Valuation can devise and run educational campaigns to help understand the importance of the product, and its need (Išoraitė, 2016).

The JetBlue Airways IPO Valuation can work with influencers and celebrities to help spread the message through social media as well as conventional media.

The JetBlue Airways IPO Valuation can use a team on the ground to interact with the target audience, brief them about the product and its benefits, and influence them positively towards purchase decisions. (Baines, Fill, & Rosengren, 2017).

Market penetration strategies

The JetBlue Airways IPO Valuation can increase its marketing spending and use emotional appeals to influence the target audience.

The marketing strategies should be focused on maximizing the reach of the brand's message and promise (Iacobucci, 2021).

The JetBlue Airways IPO Valuation is recommended to make its products accessible through an increased number of supermarkets and hypermarkets.

The JetBlue Airways IPO Valuation can also open its own retail setups to increase footfall and reach across different regions (Sahaf, 2019).

Product development strategies

The JetBlue Airways IPO Valuation is recommended to and can engage in market and consumer research for product development.

Encouraging innovation and discussion of new ideas within the JetBlue Airways IPO Valuation can also lead to rapid new product development (Varadarajan, 2015).

The JetBlue Airways IPO Valuation can also optimize the development of new products by making its manufacturing and testing processes more effective.

The JetBlue Airways IPO Valuation can also create innovation labs and labs for new product development and testing (Sahaf, 2019; Abratt & Bendixen, 2018).

Diversification strategies

The JetBlue Airways IPO Valuation can expand horizontally and add new product lines.

The JetBlue Airways IPO Valuation can also expand vertically and add new products to the existing product line

The diversification will allow the JetBlue Airways IPO Valuation to attract new consumer groups (De Mooij, 2019).

The diversification will also allow the JetBlue Airways IPO Valuation to increase its penetration and reach amongst existing consumers.

The JetBlue Airways IPO Valuation will be able to increase brand awareness through diversification as well (Iacobucci, 2021; Abratt & Bendixen, 2018).

The JetBlue Airways IPO Valuation needs to strategically align its resources for optimization and to achieve its strategic goals and targets. The JetBlue Airways IPO Valuation should continue to use its internal capabilities to realize new opportunities and for mitigating risks and weaknesses. In addition, the JetBlue Airways IPO Valuation should also make use of other strategic models to understand the managerial challenges that the organization faces and devise suitable strategies and actions for overcoming them. The leadership of the JetBlue Airways IPO Valuation will play a critical role in ensuring that the organization overcomes the challenges by focusing on the organizational culture and values, which will then impact the operations and performance at large.

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Anthony, H. (2021). Understanding strategic management. New York: Oxford University Press.

Baines, P., Fill, C., & Rosengren, S. (2017). Marketing. New York, United States: Oxford University Press.

Buchanan, D., & Huczynski, A. (2019). Organizational behaviour. London: Pearson UK.

Chernev, A. (2018). Strategic marketing management. Berlin/Heidelberg, Germany: Cerebellum Press.

De Mooij, M. (2019). Consumer behavior and culture: Consequences for global marketing and advertising. Thousand Oaks, California: Sage.

Deepak, R., & Jeyakumar, S. (2019). Marketing management. New Delhi, India: Educreation Publishing.

Dimitrieska, S., Stankovska, A., & Efremova, T. (2018). Artificial intelligence and marketing. Entrepreneurship, 6(2), 298-304.

DuBrin, A. (2013). Fundamentals of organizational behavior: An applied perspective. Amsterdam, Netherlands: Elsevier.

Gillespie, K., & Swan, K. (2021). Global marketing. New York, United States: Routledge.

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Iacobucci, D. (2021). Marketing management. Boston, Massachusetts, United States: Cengage Learning.

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Joyce, P. (2022). Strategic Management and Governance: Strategy Execution Around the World. Oxfordshire United Kingdom: Taylor & Francis.

Kareh, A. (2018). Evolution of the four Ps: Revisiting the marketing mix. Retrieved June 2022, from Forbes: https://www.forbes.com/sites/forbesagencycouncil/2018/01/03/evolution-of-the-four-ps-revisiting-the-marketing-mix/

Khan, M. (2014). The concept of ‘marketing mix’and its elements. International journal of information, business and management, 6(2), 95-107.

Kotabe, M., & Helsen, K. (2020). Global marketing management. Hoboken, New Jersey, United States: John Wiley & Sons.

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Machado, C. (2019). Organizational Behaviour and Human Resource Management. Berlin: Springer.

Phillips, P., & Moutinho, L. (2018). Contemporary issues in strategic management. London: Routledge.

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Stead, J., & Stead, W. (2014). Sustainable strategic management. London: Routledge.

Valeri, M. (2021). Organizational studies: implications for the strategic management. Berlin, Germany: Springer Nature.

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Warning! This article is only an example and cannot be used for research or reference purposes. If you need help with something similar, please submit your details here.

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JetBlue Airways IPO Valuation Case Analysis and Case Solution

Posted by Peter Williams on Aug-09-2018

Introduction of JetBlue Airways IPO Valuation Case Solution

The JetBlue Airways IPO Valuation case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The JetBlue Airways IPO Valuation case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This paper presents the solved JetBlue Airways IPO Valuation case analysis and case solution. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution.

The case solution first identifies the central issue to the JetBlue Airways IPO Valuation case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. The solution consists of recommended strategies to overcome this central issue. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. This shows how through a step-by-step procedure as to how the central issue can be resolved.

Problem Identification of JetBlue Airways IPO Valuation Case Solution

Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. In the problem identification stage, the problem faced by JetBlue Airways IPO Valuation is identified through reading of the case. This could be mentioned at the start of the reading, the middle or the end. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. At other times, finding the issue is the job of the person analysing the case. It is also important to understand what stakeholders are affected by the problem and how. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these.

Analysis of the JetBlue Airways IPO Valuation HBR Case Study

The objective of the case should be focused on. This is doing the JetBlue Airways IPO Valuation Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found.

  • In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study.
  • The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation.
  • Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation.

SWOT analysis of JetBlue Airways IPO Valuation

An important tool that helps in addressing the central issue of the case and coming up with JetBlue Airways IPO Valuation HBR case solution is the SWOT analysis.

  • The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of JetBlue Airways IPO Valuation.
  • Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue.

Therefore, the SWOT analysis is a helpful tool in coming up with the JetBlue Airways IPO Valuation Case Study answers. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used.

Porter Five Forces Analysis for JetBlue Airways IPO Valuation

Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which JetBlue Airways IPO Valuation operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions.

  • These are the threats that the industry faces due to new entrants.
  • It includes the threat of substitute products.
  • It includes the bargaining power of buyers in the industry.
  • It includes the bargaining power of suppliers in an industry.
  • Lastly, the overall rivalry or competition within the industry is analysed.

This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective.

PESTEL Analysis of JetBlue Airways IPO Valuation

Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases.

  • The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry.
  • Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question.
  • These factors are also responsible for the future growth and challenges within the industry. Hence, they should be taken into consideration when coming up with the JetBlue Airways IPO Valuation case solution.

VRIO Analysis of JetBlue Airways IPO Valuation

This is an analysis carried out to know about the internal strengths and capabilities of JetBlue Airways IPO Valuation. Under the VRIO analysis, the following steps are carried out:

  • The internal resources of JetBlue Airways IPO Valuation are listed down.
  • Each of these resources are assessed in terms of the value it brings to the organization.
  • Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors.
  • Each resource is assessed whether it could be imitated by competition easily or not.
  • Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not.

The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage.

Value Chain Analysis of JetBlue Airways IPO Valuation

The Value chain analysis of JetBlue Airways IPO Valuation helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows:

  • The firm’s primary and support activities are listed down.
  • Identifying the importance of these activities in the cost of the product and the differentiation they produce.
  • Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities.

Recognizing value creating activities and enhancing the value that they create allow JetBlue Airways IPO Valuation to increase its competitive advantage.

BCG Matrix of JetBlue Airways IPO Valuation

The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows:

  • Identify the relative market share of each strategic business unit.
  • Identify the market growth of each strategic business unit.
  • Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate.
  • Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix.

The strategies identified from the JetBlue Airways IPO Valuation BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting.

Ansoff Matrix of JetBlue Airways IPO Valuation

Ansoff Matrix is an important strategic tool to come up with future strategies for JetBlue Airways IPO Valuation in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products.

  • The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy.
  • The organization can develop new products for the existing market. This is known as product development strategy.
  • The organization can enter new markets with its existing products. This is known as market development strategy.
  • The organization can enter into new markets with new products. This is known as a diversification strategy.

The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take.

Marketing Mix of JetBlue Airways IPO Valuation

JetBlue Airways IPO Valuation needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis.

  • Analyse the company’s products and devise strategies to improve the product offering of the company.
  • Analyse the company’s price points and devise strategies that could be based on competition, value or cost.
  • Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements.
  • Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products.

JetBlue Airways IPO Valuation Blue Ocean Strategy

The strategies devised and included in the JetBlue Airways IPO Valuation case memo should have a blue ocean strategy. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy.

Competitors analysis of JetBlue Airways IPO Valuation

The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of JetBlue Airways IPO Valuation looks at the direct and indirect competitors within the industry that it operates in.

  • This involves a detailed analysis of their actions and how these would affect the future strategies of JetBlue Airways IPO Valuation.
  • It involves looking at the current market share of the company and its competitors.
  • It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc.
  • It also should look at the potential opportunities and threats that these competitors pose on the company.

Organisation of the Analysis into JetBlue Airways IPO Valuation Case Study Solution

Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will also be the JetBlue Airways IPO Valuation case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations:

  • The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these.
  • The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the JetBlue Airways IPO Valuation Case Study Solution that the business unit should focus on costs.
  • The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved.

The case study analysis and solution, and JetBlue Airways IPO Valuation case answers should be written down in the JetBlue Airways IPO Valuation case memo, clearly identifying which part shows what. The JetBlue Airways IPO Valuation case should be in a professional format, presenting points clearly that are well understood by the reader.

Alternate solution to the JetBlue Airways IPO Valuation HBR case study

It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for JetBlue Airways IPO Valuation is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations.

Implementation of JetBlue Airways IPO Valuation Case Solution

The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process.

  • A proper implementation framework shows that one has clearly understood the case study and the main issue within it.
  • It shows that one has been clarified with the HBR fundamentals on the topic.
  • It shows that the details provided in the case have been properly analysed.
  • It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented.
  • The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the JetBlue Airways IPO Valuation Harvard case is complete and properly answered.

Recommendations and Action Plan for JetBlue Airways IPO Valuation case analysis

For JetBlue Airways IPO Valuation, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows:

  • JetBlue Airways IPO Valuation should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL.
  • JetBlue Airways IPO Valuation should enhance the value creating activities within its value chain.
  • JetBlue Airways IPO Valuation should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis.
  • To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market.

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What is Harvard Business School (HBS) Case Method

Harvard Business School (HBS) Case Method, a renowned approach to business education, using business case studies in the field of marketing, sales, leadership, technology, finance, enterpreneurship, human resources, and more .

Core Principles:

  • Real-World Dilemmas: HBS cases delve into genuine business challenges faced by companies, exposing students to the complexities and uncertainties of real-world decision-making.
  • Active Participation: Students are not passive recipients of knowledge. The case method emphasizes active participation through case discussions, fostering critical thinking and analysis.
  • Developing Judgment: There are often no single “correct” answers in case studies. The focus is on developing sound judgment by weighing evidence, considering various perspectives, and making well-supported recommendations.
  • Diversity and Collaboration: Diverse backgrounds and experiences enrich case discussions. Students learn from each other as they analyze the case from different viewpoints.

Structure and Implementation:

  • Pre-Class Preparation: Effective case study learning hinges on thorough preparation. Students are expected to read and analyze the case beforehand, identifying key issues, conducting research, and formulating potential solutions.
  • Case Discussion: The case discussion in class is the heart of the method. The instructor facilitates a dynamic discussion, encouraging active participation from all students.
  • Open-Ended Questions: Instead of spoon-feeding answers, instructors pose open-ended questions that stimulate critical thinking and analysis.
  • Cold Calling: The HBS method is known for its “cold calling” technique, where professors randomly call on students to respond, promoting active engagement and preparation.
  • Socratic Dialogue: Instructors often employ the Socratic method, asking probing questions to challenge assumptions, encourage deeper analysis, and draw out student reasoning.

Benefits of the HBS Case Method:

  • Develops Critical Thinking Skills: Grappling with complex business problems and analyzing diverse perspectives strengthens critical thinking abilities.
  • Enhances Communication Skills: Active participation and clear articulation of ideas within case discussions hone communication skills.
  • Sharpens Analytical Abilities: Students learn to dissect complex situations, identify key drivers, and weigh evidence effectively.
  • Promotes Decision-Making Confidence: The case method fosters the ability to make well-reasoned decisions under uncertainty.
  • Builds Leadership Skills: Active participation in discussions and persuasively advocating for solutions develops leadership potential.
  • Prepares Students for Real-World Business: The case method equips students with the knowledge and skills to navigate the complexities of real-world business environments.

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How to Write a Great Case Study Solution | HBR Case Study Assignment Help

A top-tier Harvard Business School (HBS) case study solution comprises a thorough analysis, strategic insights, and actionable recommendations. The solution is not just an academic exercise but a practical approach to solving real-world business problems. Here’s an illustration of what the best Harvard case study solutions comprise, along with a detailed checklist to ensure excellence.

Key Components of a Harvard Case Study Solution

Comprehensive Understanding of the Case

  • Summary of the Case : Provide a concise summary that outlines the key issues, stakeholders, and objectives. This sets the stage for deeper analysis.
  • Problem Identification : Clearly define the main problem or decision point that the case presents. This includes understanding the underlying causes and the broader business context.

Detailed Analysis

  • Qualitative Analysis : Evaluate qualitative factors such as organizational culture, leadership styles, and market conditions. This helps in understanding the non-quantifiable aspects that impact the business scenario.
  • Quantitative Analysis : Use data and financial metrics to analyze the business performance. This includes profit margins, cost structures, revenue streams, and other relevant financial indicators.
  • SWOT Analysis : Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to provide a structured view of the internal and external factors affecting the business.

Strategic Alternatives

  • Generation of Alternatives : Develop multiple strategic alternatives to address the identified problem. Each alternative should be feasible and align with the company’s goals and resources.
  • Evaluation of Alternatives : Assess each alternative based on criteria such as cost, feasibility, impact, and alignment with the company’s strategic objectives. Use quantitative data where possible to support the evaluation.

Recommended Solution

  • Selection of the Best Alternative : Choose the most viable solution from the generated alternatives. Justify the choice with clear, logical reasoning and supporting evidence.
  • Implementation Plan : Develop a detailed implementation plan that includes steps, timelines, resources required, and potential risks. This ensures the recommended solution is actionable and practical.
  • Contingency Plan : Outline a contingency plan to address potential challenges or risks that may arise during the implementation phase.

Reflection and Learning

  • Lessons Learned : Reflect on the case study process and the key lessons learned. This includes insights into decision-making, strategic thinking, and the application of business concepts.
  • Future Implications : Discuss the broader implications of the case study for the industry and future business scenarios.

Checklist for a Great Harvard Case Study Solution

Comprehensive Understanding

  • Clearly summarized the case
  • Identified the main problem and stakeholders
  • Understood the broader business context
  • Conducted qualitative analysis (organizational culture, market conditions, etc.)
  • Performed quantitative analysis (financial metrics, data analysis)
  • Completed a SWOT analysis
  • Generated multiple feasible alternatives
  • Evaluated alternatives based on relevant criteria
  • Supported evaluations with data and logical reasoning
  • Selected the most viable alternative with a strong justification
  • Developed a detailed and practical implementation plan
  • Created a contingency plan to manage potential risks
  • Reflected on the case study process
  • Identified key lessons learned
  • Discussed future implications for the industry and business practices

At Fern Fort University creating a top-tier Harvard case study solution involves a methodical approach to understanding the case, performing detailed analysis, generating and evaluating strategic alternatives, and providing actionable recommendations. By following this structured process, our case solution writing experts deliver solutions that are best in class.

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Once the guidelines are uploaded, clients are required to upload the case study PDF. This document contains the case study that needs to be analyzed and solved. Providing the case study in its PDF format allows the writer to thoroughly review and understand the context, background, and specifics of the problem at hand. This step ensures that the writer has all the necessary materials to begin the in-depth analysis.

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Step 4: Delivery of the Case Study Solution

Upon completion of the analysis and drafting of the case study solution, the writer delivers the final product to the client. The delivery includes a comprehensive report that outlines the problem, detailed analysis, proposed solutions, and actionable recommendations. The case study solution is presented in a clear, structured format that is easy to understand and implement. This step marks the culmination of the writer’s efforts and provides the client with a well-crafted solution that addresses all the guidelines and expectations .

Step 5: Improvements (If Required)

After the delivery of the case study solution, clients have the opportunity to review the document and request any necessary improvements. This step ensures that the final product meets the client’s satisfaction and adheres to all specified requirements. The writer makes the required adjustments based on the client’s feedback, fine-tuning the analysis and recommendations as needed. This iterative process guarantees that the case study solution is of the highest quality and fully aligned with the client’s expectations.

Importance of Each Step in the Process

Filling the form and uploading guidelines.

This initial step is critical as it sets the direction for the entire project. Clear and detailed guidelines ensure that the writer understands the scope, objectives, and specific requirements, reducing the risk of misalignment and ensuring a focused approach.

Uploading the Case Study PDF

Providing the case study in its original format ensures that the writer has all the necessary context and background information. This step is crucial for a thorough understanding of the problem and accurate analysis.

Communication with the Writer

Direct communication allows for clarification of any doubts and ensures that both the client and the writer have a mutual understanding of the project deliverables. This interaction is essential for tailoring the solution to meet the client’s specific needs.

Delivery of the Solution

Delivering a comprehensive and well-structured case study solution provides the client with actionable insights and recommendations. This step showcases the writer’s expertise and ensures that the client receives a valuable product that addresses the case study’s challenges effectively.

Requesting Improvements

The opportunity for revisions ensures that the final product meets the client’s expectations and adheres to all requirements. This step adds a layer of quality assurance, ensuring client satisfaction.

The case study writing service process at Fern Fort University is designed to deliver high-quality, tailored solutions through a structured and client-focused approach. Each step in the process is carefully crafted to ensure clarity, thorough analysis, and client satisfaction. By following this comprehensive process, Fern Fort University guarantees that clients receive insightful and actionable case study solutions that meet their specific needs and contribute to their academic or business success.

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Fern Fort University’s professional case study solution writers have the following attributes that can help you to boost your academic and professional growth --

1. Analytical Skills : Professional case study solution writers at Fern Fort University possess exceptional analytical skills. They can break down complex problems into manageable parts, identify key issues, and understand the underlying factors influencing the situation. This enables them to provide a deep and insightful analysis that addresses the core of the problem.

2. Research Proficiency : Our writers excel in conducting thorough and rigorous research. They are adept at gathering relevant data from credible sources, including academic journals, industry reports, and case-specific documents. Their research proficiency ensures that the case study solutions are well-informed and supported by solid evidence.

3. Critical Thinking : Critical thinking is a hallmark of Fern Fort University’s writers. They evaluate information from multiple perspectives, assess the validity of sources, and develop logical, well-reasoned conclusions. This skill allows them to craft nuanced solutions that consider various possible outcomes and implications.

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5. Industry Knowledge : Writers at Fern Fort University have a deep understanding of the industries they write about. Whether it’s finance, healthcare, technology, or any other sector, they bring industry-specific insights that enrich the case study analysis and make the solutions relevant and practical.

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7. Problem-Solving : Our writers are skilled problem-solvers. They go beyond identifying issues by proposing actionable and realistic solutions. Their recommendations are practical and tailored to the specific context of the case study, providing clients with clear steps to address the challenges.

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10. Adaptability : Our writers are highly adaptable, capable of tailoring their approach to meet the unique needs of different cases and clients. Whether it’s a change in scope, new information, or specific client preferences, they adjust their strategies to deliver customized and relevant solutions.

Fern Fort University’s professional case study solution writers deliver comprehensive, insightful, and actionable case study solutions that meet the highest academic and professional standards.

Where Can I Find a Case Solution for Harvard Business Cases or HBR Cases? | Pre-written Solutions

At Fern Fort University, you can find comprehensive case analysis solutions for Harvard Business School (HBS) or Harvard Business Review (HBR) cases. These solutions are different from custom case study solutions. They are provided to help clients to prime their research and analysis. These pre-written HBR case study solutions are designed to help you in several ways:

  • Thorough Analysis : Each solution includes a detailed examination of the case, identifying key issues, challenges, and opportunities.
  • Structured Approach : The solutions are organized in a clear, logical manner, making it easier for you to follow and understand the analysis process.
  • Actionable Recommendations : Practical and realistic recommendations are provided, offering clear steps to address the case’s problems.
  • Insightful Learning : By studying these solutions, you gain insights into effective problem-solving techniques and strategic thinking.

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By leveraging the pre-written case study solutions from Fern Fort University, you can enhance your academic and professional capabilities, ensuring that you are well-prepared to address complex business problems.

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  • Finance & Accounting / MBA Resources

Introduction to case study solution

EMBA Pro case study solution for JetBlue Airways IPO Valuation case study

At EMBA PRO , we provide corporate level professional case study solution. JetBlue Airways IPO Valuation case study is a Harvard Business School (HBR) case study written by Michael J. Schill, Garth Monroe, Cheng Cui. The JetBlue Airways IPO Valuation (referred as “Jetblue Invited” from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. It also touches upon business topics such as - Value proposition, . Our immersive learning methodology from – case study discussions to simulations tools help MBA and EMBA professionals to - gain new insight, deepen their knowledge of the Finance & Accounting field, and broaden their skill set.

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Case Description of JetBlue Airways IPO Valuation Case Study

This case examines the April 2002 decision of JetBlue management to price the initial public offering of JetBlue stock during one of the worst periods in airline history. The case outlines JetBlue's innovative strategy and the associated strong financial performance over its initial two years. Students are invited to value the stock and take a position on whether the current $22-$24 per share filing range is appropriate. The case is designed to showcase corporate valuation using discounted cash flow and peer-company market multiples. The epilogue details the 67% first-day rise in JetBlue stock from the $27 offer price. With such a backdrop, students are exposed to one of the well-known finance anomalies--the IPO underpricing phenomenon--and are invited to critically discuss various proposed explanations.

Case Authors : Michael J. Schill, Garth Monroe, Cheng Cui

Topic : finance & accounting, related areas :, what is the case study method how can you use it to write case solution for jetblue airways ipo valuation case study.

Almost all of the case studies contain well defined situations. MBA and EMBA professional can take advantage of these situations to - apply theoretical framework, recommend new processes, and use quantitative methods to suggest course of action. Awareness of the common situations can help MBA & EMBA professionals read the case study more efficiently, discuss it more effectively among the team members, narrow down the options, and write cogently.

Case Study Solution Approaches

Three Step Approach to JetBlue Airways IPO Valuation Case Study Solution

The three step case study solution approach comprises – Conclusions – MBA & EMBA professionals should state their conclusions at the very start. It helps in communicating the points directly and the direction one took. Reasons – At the second stage provide the reasons for the conclusions. Why you choose one course of action over the other. For example why the change effort failed in the case and what can be done to rectify it. Or how the marketing budget can be better spent using social media rather than traditional media. Evidences – Finally you should provide evidences to support your reasons. It has to come from the data provided within the case study rather than data from outside world. Evidences should be both compelling and consistent. In case study method there is ‘no right’ answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios.

Case Study Solution of JetBlue Airways IPO Valuation

We write JetBlue Airways IPO Valuation case study solution using Harvard Business Review case writing framework & HBR Finance & Accounting learning notes. We try to cover all the bases in the field of Finance & Accounting, and other related areas.

Objectives of using various frameworks in JetBlue Airways IPO Valuation case study solution

By using the above frameworks for JetBlue Airways IPO Valuation case study solutions, you can clearly draw conclusions on the following areas – What are the strength and weaknesses of Jetblue Invited (SWOT Analysis) What are external factors that are impacting the business environment (PESTEL Analysis) Should Jetblue Invited enter new market or launch new product (Opportunities & Threats from SWOT Analysis) What will be the expected profitability of the new products or services (Porter Five Forces Analysis) How it can improve the profitability in a given industry (Porter Value Chain Analysis) What are the resources needed to increase profitability (VRIO Analysis) Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis)

SWOT Analysis of JetBlue Airways IPO Valuation

SWOT analysis stands for – Strengths, Weaknesses, Opportunities and Threats. Strengths and Weaknesses are result of Jetblue Invited internal factors, while opportunities and threats arise from developments in external environment in which Jetblue Invited operates. SWOT analysis will help us in not only getting a better insight into Jetblue Invited present competitive advantage but also help us in how things have to evolve to maintain and consolidate the competitive advantage.

- Strong Balance Sheet – The financial statement of Jetblue Invited looks strong and will help the company going forward.

- High customer loyalty & repeat purchase among existing customers – Jetblue Invited old customers are still loyal to the firm even though it has limited success with millennial. I believe that Jetblue Invited can make a transition even by keeping these people on board.

- Jetblue Invited business model can be easily replicated by competitors – According to Michael J. Schill, Garth Monroe, Cheng Cui , the business model of Jetblue Invited can be easily replicated by players in the industry.

- Little experience of international market – Even though it is a major player in local market, Jetblue Invited has little experience in international market. According to Michael J. Schill, Garth Monroe, Cheng Cui , Jetblue Invited needs international talent to penetrate into developing markets.

Opportunities

- E-Commerce and Social Media Oriented Business Models – E-commerce business model can help Jetblue Invited to tie up with local suppliers and logistics provider in international market. Social media growth can help Jetblue Invited to reduce the cost of entering new market and reaching to customers at a significantly lower marketing budget.

- Lucrative Opportunities in International Markets – Globalization has led to opportunities in the international market. Jetblue Invited is in prime position to tap on those opportunities and grow the market share.

- Customers are moving toward mobile first environment which can hamper the growth as Jetblue Invited still hasn’t got a comprehensive mobile strategy.

- Home market marketing technique won’t work in new markets such as India and China where scale is prized over profitability.

Once all the factors mentioned in the JetBlue Airways IPO Valuation case study are organized based on SWOT analysis, just remove the non essential factors. This will help you in building a weighted SWOT analysis which reflects the real importance of factors rather than just tabulation of all the factors mentioned in the case.

What is PESTEL Analysis

PESTEL /PEST / STEP Analysis of JetBlue Airways IPO Valuation Case Study

PESTEL stands for – Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Jetblue Invited operates in. Michael J. Schill, Garth Monroe, Cheng Cui provides extensive information about PESTEL factors in JetBlue Airways IPO Valuation case study.

Political Factors

- Political and Legal Structure – The political system seems stable and there is consistency in both economic policies and foreign policies.

- Political consensus among various parties regarding taxation rate and investment policies. Over the years the country has progressively worked to lower the entry of barrier and streamline the tax structure.

Economic Factors

- Inflation rate is one of the key criteria to consider for Jetblue Invited before entering into a new market.

- Foreign Exchange movement is also an indicator of economic stability. Jetblue Invited should closely consider the forex inflow and outflow. A number of Jetblue Invited competitors have lost money in countries such as Brazil, Argentina, and Venezuela due to volatile forex market.

Social Factors

- Consumer buying behavior and consumer buying process – Jetblue Invited should closely follow the dynamics of why and how the consumers are buying the products both in existing categories and in segments that Jetblue Invited wants to enter.

- Demographic shifts in the economy are also a good social indicator for Jetblue Invited to predict not only overall trend in market but also demand for Jetblue Invited product among its core customer segments.

Technological Factors

- 5G has potential to transform the business environment especially in terms of marketing and promotion for Jetblue Invited.

- Artificial intelligence and machine learning will give rise to importance of speed over planning. Jetblue Invited needs to build strategies to operate in such an environment.

Environmental Factors

- Consumer activism is significantly impacting Jetblue Invited branding, marketing and corporate social responsibility (CSR) initiatives.

- Environmental regulations can impact the cost structure of Jetblue Invited. It can further impact the cost of doing business in certain markets.

Legal Factors

- Health and safety norms in number of markets that Jetblue Invited operates in are lax thus impact the competition playing field.

- Intellectual property rights are one area where Jetblue Invited can face legal threats in some of the markets it is operating in.

What are Porter Five Forces

Porter Five Forces Analysis of JetBlue Airways IPO Valuation

Competition among existing players, bargaining power of suppliers, bargaining power of buyers, threat of new entrants, and threat of substitutes.

What is VRIO Analysis

VRIO Analysis of JetBlue Airways IPO Valuation

VRIO stands for – Value of the resource that Jetblue Invited possess, Rareness of those resource, Imitation Risk that competitors pose, and Organizational Competence of Jetblue Invited. VRIO and VRIN analysis can help the firm.

Resources Value Rare Imitation Organization Competitive Advantage
Track Record of Project Execution Yes, especially in an industry where there are frequent cost overun Yes, especially in the segment that Jetblue Invited operates in No, none of the competitors so far has able to imitate this expertise Yes, company is successful at it Providing Strong Competitive Advantage
Talent to Manage Regulatory and Legal Obligations Yes No Can be imitated by competitors Yes Not critical factor
Brand awareness Yes Yes, Jetblue Invited has one of the leading brand in the industry No Jetblue Invited has utilized its leading brand position in various segments Sustainable Competitive Advantage

What is Porter Value Chain

Porter Value Chain Analysis of JetBlue Airways IPO Valuation

As the name suggests Value Chain framework is developed by Michael Porter in 1980’s and it is primarily used for analyzing Jetblue Invited relative cost and value structure. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Jetblue Invited. This will help in answering – the related costs and various sources of competitive advantages of Jetblue Invited in the markets it operates in. The process can also be done to competitors to understand their competitive advantages and competitive strategies. According to Michael Porter – Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks.

What is BCG Growth Share Matrix

BCG Growth Share Matrix of JetBlue Airways IPO Valuation

BCG Growth Share Matrix is very valuable tool to analyze Jetblue Invited strategic positioning in various sectors that it operates in and strategic options that are available to it. Product Market segmentation in BCG Growth Share matrix should be done with great care as there can be a scenario where Jetblue Invited can be market leader in the industry without being a dominant player or segment leader in any of the segment. BCG analysis should comprise not only growth share of industry & Jetblue Invited business unit but also Jetblue Invited - overall profitability, level of debt, debt paying capacity, growth potential, expansion expertise, dividend requirements from shareholders, and overall competitive strength. Two key considerations while using BCG Growth Share Matrix for JetBlue Airways IPO Valuation case study solution - How to calculate Weighted Average Market Share using BCG Growth Share Matrix Relative Weighted Average Market Share Vs Largest Competitor

5C Marketing Analysis of JetBlue Airways IPO Valuation

4p marketing analysis of jetblue airways ipo valuation, porter five forces analysis and solution of jetblue airways ipo valuation, porter value chain analysis and solution of jetblue airways ipo valuation, case memo & recommendation memo of jetblue airways ipo valuation, blue ocean analysis and solution of jetblue airways ipo valuation, marketing strategy and analysis jetblue airways ipo valuation, vrio /vrin analysis & solution of jetblue airways ipo valuation, pestel / step / pest analysis of jetblue airways ipo valuation, swot analysis and solution of jetblue airways ipo valuation, references & further readings.

Michael J. Schill, Garth Monroe, Cheng Cui (2018) , "JetBlue Airways IPO Valuation Harvard Business Review Case Study. Published by HBR Publications.

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JetBlue Airways IPO Valuation Case Solution & Answer

Home » Case Study Analysis Solutions » JetBlue Airways IPO Valuation

This Case is about FINANCIAL ANALYSIS

PUBLICATION DATE: August 20, 2003 PRODUCT #: UV2512-PDF-ENG

The case summarizes the revolutionary strategy and the related strong fiscal performance over its first couple of years of JetBlue. Pupils are invited to value the stock and take a position on whether the present $22-$24 per share filing range is suitable.

The case was created to showcase corporate valuation using discounted cash flow and peer-business market multiples. The epilogue details the 67% first-day rise in JetBlue stock from the offer price that is $27. With this kind of backdrop, students are exposed to one of the well known finance anomalies–the IPO underpricing happening–and are invited to discuss various proposed explanations.

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JetBlue Airways IPO Valuation Harvard Case Solution & Analysis

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JetBlue Airways IPO Valuation: Case Study Help

Introduction.

The JetBlue Airways was founded in 1999. At the time, it competed against Southwest Airlines, AirTran, and Delta. Unlike most airlines, JetBlue focuses on business travelers. After all, these travelers are usually more profitable than leisure travelers, so JetBlue has focused on attracting these customers. The airline was one of the few low-cost airlines to produce a profit in 2001, and it quickly became one of the top three. The company has since become one of the most profitable airlines in the world. During this time, with its goal of bringing humanity back to air travel, JetBlue has expanded its network to include many cities in New England The company's success demonstrates its dedication to quality service. Its founders, David Needleman and John Owen, were Brazilians and American entrepreneurs. Both were involved in other airlines before JetBlue, and his first airline was bought by Southwest Airlines. After 9/11, he returned to the US to focus on the low-cost airline model. Ultimately, he had a vision. and Boston. The company's first major move was to hire David Barger as its CEO.(Michael J. Schill, 2003)

Situational analysis

Market condition.

In its first decade of operations, JetBlue took off and grew. It's the only airline to have grown by leaps and bounds in an industry where more than 100 startups failed since 1978. In the aftermath of the 9/11 attacks, Despite its success, JetBlue Airways is currently battling strong competition and is not able to compete with larger, more powerful rivals. The airline's financial performance has fallen in recent years and the airline is not profitable. Its stock price has declined. But even before 9/11, the airline industry was already in trouble. Fuel and labor costs were rising annually, and average fares had fallen. The company also suffered from weak labor/management relations and sub-par service.

In order to cope up with these issues the company required to offer IPO’s and raise sufficient capital out of it. The aviation industry is a competitive one, and the competition is fierce. With fixed costs and low profit margins, the airline industry has a unique set of challenges. The resulting price cuts are the product of tighter regulations and lower operating costs for the companies. When the government makes it easier to do business, prices can be lowered, as they often are with low-cost carriers. However, low-cost airlines are a different story. They face a different set of challenges, and they have a unique position in the airline industry.

Under these market circumstances many players of the aviation industry adopted the low fares business model all around U.S and airlines around the world. The airline’s founders, David Needleman and John Owen, were Brazilians and American entrepreneurs. Both were involved in other airlines before JetBlue, and his first airline was bought by Southwest Airlines. After 9/11, he returned to the US to focus on the low-cost airline model. Historically, competition in the airline industry has improved passenger service and the economy as a whole. The U.S. airline industry has become more efficient. With competition, airlines have increased capacity, improved services and quality meals. Overall, the competitive environment has benefited the traveler by lowering prices. Despite its low fare and low-cost carrier status, it is among the few airlines to produce a profit during 2001. The company went on to become one of the best-rated airlines, with the highest customer satisfaction ratings. In May 2007, the airline changed its command structure.

Short and Long-Term Effect of 9/11 on Airline Industry

In the aftermath of the 9/11 attacks, the airlines faced severe challenges and had to find new ways to compete. The airline industry suffered from mass cancellations, a weak reservation system, and poor baggage handling systems. The airline industry suffered a weakened economy following the 9/11 attacks. Airlines faced severe challenges in the wake of the attacks, and the impact on low-cost operations was significant. Delta Express ceased to operate in the months after the terror attack, and a number of other low-cost carriers closed. Fortunately, JetBlue managed to offset the impact of the crisis more than most carriers. In fact, it was one of the few airlines to post a profit during this difficult period.

These 9/11 attacks also left long-term effects as it created a layer of fear among the people and they were afraid from any other incident like this. The government also imposed many rules and regulation on the aviation industry and people also not used to prefer traveling together in the after math of these incidents.

Competitors

The competition in the U.S. airline industry is highly unlikely. The U.S. Department of Transportation has imposed numerous regulations to protect consumers. These regulations have also stifled competition and reduced efficiency. In addition, many major airlines have hiked their fares in tandem with government regulation and added fees. In the end, this has hurt consumers and increased costs. In many industries, this leads to a few dominant companies. In the U.S., Southwest and USAir are the top two low-cost carriers, but both are known for their inefficient management. The company has reduced costs by introducing new services and implementing a customer-first approach. The airline is utilizing technology to attract new customers and improve its service. It has made significant progress in e-ticketing, online registration, and onboard TV channels. Despite these challenges, the company continues to introduce new features and services that contribute to its competitive advantage. This has benefited customers by cutting operational costs and lowering fares.

Management:

Using a people-centered organizational approach, the leadership of JetBlue took a different approach to change than other companies. The company's strategy was to "bring the human element back to air travel" and to encourage its crewmembers to connect their daily work with the company's overarching purpose. To accomplish this, leadership began by bringing crewmembers into conversations. They sought to make people more emotionally connected to the organization and to help them understand the connection between their work and the success of the organization.

The leadership team at JetBlue believes that their culture is essential to long-term success. In addition to implementing management principles, the company's senior leaders have conducted one-on-one conversations with crewmembers to better understand the barriers that stand in the way of delivering outstanding service. They have also engaged their crew members to understand what obstacles prevent them from providing world-class service.

The executives at JetBlue have implemented a number of innovative practices that have improved the organization's customer service. Their goal is to improve the overall experience for passengers, which is what makes their flights unique. This has helped the airline earn high marks on customer satisfaction surveys and has helped to develop an incredible brand image. The company is now able to charge its passengers a flat rate for their tickets, which helps them make a profit.

­­­­Initial public offering

The initial public offerings generally known as IPO is process that companies do to go public. This process basically includes the very first offering of the company’s stake to public. Through this process the companies raise its capital by appealing various investors to invest in their company’s stake. This is a very crucial process for the original owners of the companies as through this process they basically sell some part of their stake to the public. Once the company is went public and its IPO is offered in the share market the company’s shares are sold off and various investors become the stakeholders in the company by providing sufficient capital.

Based on the calculated cash flows of the case the determined share price of 225 dollars is not normal because of them fact that the cash flows were estimated for about thirty years and this much long period makes the calculations from FCF approach irrelevant because of many factors and constraints included an arising in the mention duration.

Instead the PE valuation approach should be considered and used to calculate the per share price because it considers market averages to determine the EPS. Based on the PE valuation approach per share price of the company is determined to be 42 dollars/ share which is still more than that of its competitors. The $25/share is the best EPS suggested to the company because it seems much feasible for the company to be comparably successful in the market.....

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    JetBlue Airways IPO Valuation: Case Study Help Introduction. The JetBlue Airways was founded in 1999. At the time, it competed against Southwest Airlines, AirTran, and Delta. Unlike most airlines, JetBlue focuses on business travelers.

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    Produced the lowest cost per available-seat mile of any major US airline in 2001. 6.98 cents vs industry average 10.08 cents. Established brand identified as safe, reliable, low-fare airline that was focused on customer service. July 1999, David Neeleman announced plan to launch a new airline that would bring "humanity back to air travel".

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