This case is all about the use of entrepreneur experience & quality. And how those experience & qualities helps to achieve success in business. The name of the entrepreneur is David Neeleman. He started his business just with a few planes and one city pair. But now a day his company competing with the largest airline company of world.
Neeleman proved his entrepreneur quality science he was in 24 years old. First he was founded Morris air. In 1944 he sells his Morris air to Southwest airlines. Than Neeleman found Canadian based westjet airlines which is familiar now as Jetblue airlines. This is the main competitor of Southwest airlines.
Behind the success of Jetblue airlines main reason is the talent & experience of Neeleman and his top management. And some unique service that is provided by JetBlue. And the financial liquidity that helps a business for long run with effectively and efficiently .
HOW DOES BEING A SECOND MOVER CONTRIBUTE TO JETBLUES SUCCESS HOW ITS SECOND MOVER STRATEGY PRESENT POTENTIAL DIFFICULTIES DOES FOR THE FIRM? WOULD A FIRST MOVER STRATEGY HAVE BEEN BATTER? WHY OR WHY NOT?
How does being a second mover contribute to JetBlue’s Success?
As a second mover JetBlue take many advantages from the first mover Southwest airlines. Because traditionally in airlines industries there always have same similarities among the companies strategies & services. So which offer gone run in market & which strategies are work in market the second mover can easily understand by the activity of first mover.
Now in this case we see that JetBlue become the 1st copycat to duplicate every piece of Southwest strategy. Apart with that Neeleman also introducing some unique strategies for JetBlue like luxurious leather seat and give a TV on individual seat back and some other offers.
How does its second mover strategy present & potential difficulties for the firm?
In any market new entrepreneur arise means the threat for existing companies. So existing companies may create many difficulties for the second mover for disappear the second mover. There are some present and potential threats that can be the second movers faced are following.
• The first mover may offer more aggressive promotions for vanish the second mover.
• For surviving in competitive market the second mover require huge financial capabilities.
• The copycat matter may not favorable by all time and all customers.
• Customers may think that there is no brand equity in JetBlue.
• The Southwest may take legal action against JetBlue’s for copying their strategy.
Would a first mover strategy is batter why or why not?
In our sense the first mover strategy is always batter than second mover. Because they can do the monopoly business in market. There have no competitor for them. The can increase the demand & price by reducing the supply in market .the first mover also get some advantages from surrounds like government, customers,etc.
If competitors arise in market they can put some difficulties for them in different way. The first mover can get the competitive advantage to use this language that “we are the first company that introduce those services to our customers”
They can get some loyal customers which spread positive word of mouth for them. The first mover may doing business long time in market so they can earn huge profit so they can introducing R&D department for introducing new services to its customers.
CONSIDER THE FACTORS THAT LEADS TO SUCCESS FOR ENTREPRENEURIAL FIRMS.IN MY OPINIONOS JETBLUE HAVE WHAT IT TAKES TO BE A SUCCESS? EXPLAIN?
From a lot of qualities of a successful entrepreneurial firm we are including the five qualities of a successful entrepreneurial firm we include in this project that. Those are following.
1. Comprehensive decision-making structure.
2. Long-term orientation.
3. The right human capital mix.
4. Organizational culture of professionalism.
5. Sustained family harmony.
Now we going to explain those characteristics of JetBlue that it have as a successful entrepreneurial firm.
Comprehensive decision-making structure:
JetBlue has the comprehensive decision making structure. Because for comprehensive decision making structure is always set by the top-level management. And JetBlue’s top level managements are most talented and experienced include CEO named Neeleman also. So by their faultless and fair decision making qualities the JetBlue is become one of the successful airline business organizations in the world.
Neeleman always focus on long term orientation about JetBlue. 1st Neeleman always try to follow Southwest Airlines strategy it means he try to build his company as like Southwest Airlines. Rather than that he also introducing some unique services to customers for making long term business.
In this case Neeleman also suggest a strategy which is important for developing a stable business. There have three components of this strategy, those are following
• I always talk about the tripod-low costs
• Great product.
The right human capital mix:
In JetBlue there have a right human mixed for achieving the organizational goal. Neeleman was collected top level managements which are most talented and experienced. And at last he is hire Chris collins, a former people express manager for competiting in large market.
Organizational culture of professionalism:
JetBlue’s follow the culture of giving customers superior services with some unique characteristic those are luxurious leather seat and give a TV on individual seat back and some other offers. JetBlue’s employees have to be committed for achieving long term goals. The re culture is always satisfying the customer’s needs .
CONSIDER THE FACTORS THAT LEAD TO FAILURE FOR ENTREPRENEURIAL FIRMS, IN MY OPINION IS JETBLUE LIKELY TO EXPERIENCE FAILURE? EXPLAIN?
From a lot of factors that leads to failure for entrepreneurial firm, we are including the five factors that leads to failure entrepreneurial firm we include in this project that. Those are following.
1) Excessive optimism
3) Lack of creativity
5) Bad luck
Entrepreneurs have to be optimistic to succeed. However, too much optimism is also one of the most common reasons they fail. Entrepreneurs need to remember that only the paranoid survive. As much as you need to believe in your own success, at the same time you must never forget all the things that can go wrong and plan accordingly.
Entrepreneurs need to be stubborn. They are often surrounded with people, even their loved ones, who tell them to give up and go get a job rather than trying to build something. Nevertheless, the inability or refusal to change and pivot kills many entrepreneurs.
Lack of creativity:
A good entrepreneur learns from and often copies what others are doing if it’s working. As long as you aren’t stealing anything, that’s just good business. However, if you have none of your own ideas and are simply a copycat of what others are doing, you aren’t creating any value. Your business has nothing about it that is special, and your customers and others in the market will know it. A commodity business with no unique value proposition is much more likely to fail.
A good entrepreneur should be greedy and not just for money. Entrepreneurs should have a big appetite for risk, glory, fame, misery, power, and fortune among other things. However, many entrepreneurs allow their greed to get the better of them. They allow it to blind their judgment and make bad decisions that destroy their businesses or themselves personally. The best entrepreneurs know how to balance their greed with discipline, prudence, and humility.
Yes, a successful entrepreneur must be lucky. This is just a basic fact even as it may be offensive to many people who think that you have to make your own luck and everything that happens people deserve. As nice as that is to believe for some people, it isn’t true. Luck is usually the single most important factor that distinguishes the most successful entrepreneurs from those who just do ok and survive. It is extremely rare for an entrepreneur to achieve great success without luck, and there is no way for anyone to control that variable. This is why many successful entrepreneurs are superstitious.
Why become an entrepreneur when success is so uncertain? The most important reasons to become an entrepreneur aren’t success, money, fame, power, or glory. The entrepreneurial life is about being your own boss, doing what you love, and creating value. Hopefully if you create enough value, the money, fame, and glory will follow. Regardless, nobody can take away from you the enjoyment you derive from what you do. If you’re just in the game for the hope of hitting it big, you shouldn’t be in the game.
My opinion about JetBlue failure:
After studying the case we haven’t find any such characteristics that leads to failure for JetBlue. Because for the faultless entrepreneurial decision by the Neeleman. He and his top managements talents and experiences have proved that they are not failure.
But in case of last factor of failure that means bad luck. In case of bad luck it exceptional. Except that reason there is no above mistake done by JetBlue’s management that leads failure.
• Neeleman always think about customers facilities which is accurate but he also focus on his employees who provide services to JetBlue’s customers. So our recommendation is Neeleman has to take some steps for influencing JetBlue’s employees too.
• Neeleman have to reducing the internal politics by employees.
• Reward or recognition must be given in fair way.
• Neeleman may do some social welfare task. This is fall under holistic marketing.
• Based on situation Neeleman may apply centralize & decentralize strategy.
In conclusion we can say that David Neeleman is a model role for upcoming or new entrepreneurs. In this case we find out some factors for developing business stable. Those can be the key points for new entrepreneurs. For sustain long time in market. One thing that we find from this case if Neeleman find any threat in business he converted it into opportunity .like Jetblue is the second mover in the market but Neeleman use the first mover strategy and also give some unique facilities to his customers. Neeleman faced the biggest challenge when he shifts his small organization into large organization. But he makes it successfully because he arranges liquidity from market by selling his companies bond into the market. And he also have a huge sources of money because he sold Morris Airlines to Southwest airlines in 1994 for $129 million.