Jet Blue Airline Corporation, usually stylized as the “JetBlue”, is famous as low cost, but high quality American airline. It is headquartered in New York City. It is known as the sixth biggest airways in United States, and one of the major air-carrier. The main base of Jet Blue Airways is at JFK- John F. Kennedy International Airport. It has been reported that Jet Blue is serving to 102 destinations in Mexico, United States, South America, Caribbean, and Central America (Jet Blue, 2018).
Jet Blue Airways has to struggle hard to maintain its position and striving hard for leading position in the presence of many strong rivals in the industry like American airlines, United Airlines, Continental Airlines, etc. For this, it effectively needs different approaches, and analysis to make efficient decisions. For evaluating its product or service portfolio, BCG matrix provides the assistance to the company. The matrix evaluate the products in two main aspects; market share and market growth. Jet Blue needs to increase the market share through more mass media advertisements, as it mostly depends on word of mouth. Market penetration could help the company in increasing the market growth and share (Dvorak, 2012). However, the detailed BCG analysis is discussed below.
Cash Cows
Products in this quadrant are found with high market share, and low market growth rate, which means they bring more cash in the company because of grabbing the large volume of sales portion of the industry. They consume less investment as compare to the profits they generate. Company needs to implement efficient strategies for retaining the position, and to increase the growth rate. Baggage facility is the cash cow for the Jet Blue Airline, as irrespective of other rivals, it offers more baggage capacity in less rates, which is much appreciated by consumers (Borrayo, 2012).
Stars
The products which have high market share and high market growth rate are categorized as Star items of the company. These goods ae consider as emerging products that have great future in terms of growth level. It is necessary for the company to maintain the position or to invest more so that it could turn into cash cows. Jet Paws and the wireless services are stars of the Jet Blue Airline, because the company takes care of the consumers and also their pets, which give them much attention and competitive advantage in the industry. Both services are provided with the objective of having comfortable trip for the consumers (Dvorak, 2018).
Question Marks
Some products are not up to the same level as of cash cows or stars, but possess the potential to have been more efficient like that of star or cash cows, if investment is made on them. These items have high market growth but less market share. Companies shave to make heavy investment for such items to grow. For Jet Blue Airways, its True Blue loyalty programs are the question mark, as it is the most effective strategy for the company, but due to lack of advertisements, many people does not know about it. For this, it is necessary for the Airline to invest more in advertisements (Borrayo, 2012).
Dogs
This category comprises of the products which cannot yield the financial gain for businesses, and perform poorly in terms of revenues, future growth and sales. They have very low level of ROI which makes it more difficult for continuing their operations. These products are the cash traps for the company. Gift Cards are the dog for Jet Blue Airlines, because after providing so many services in less cost, these gifts are consider as the burden for the company (Borrayo, 2012).
References
Borrayo, J. 2012. Bringing humanity back to air travel jet blue. [Online], Available at: https://www.slideshare.net/JudaAdamBorrayo/bringing-humanity-back-to-air-travel-jet-blue, [Accessed on: 2nd September, 2018].
Jet Blue, 2018. JetBlue Adds New Cities and Routes as It Advances West Coast Strategy. [Online], Available at: http://mediaroom.jetblue.com/investor-relations/press-releases/2018/04-25-2018-192940023, [Accessed on: 2nd September, 2018].
Dvorak, C. 2012. Jet Blue. [Online], Available at: https://prezi.com/rwbjb7mj0gmx/jetblue/, [Accessed on: 2nd September, 2018].