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JetBlue Success vs. Ford Failure Analysis

JetBlue succeeded due to its focus on using information technology to automate processes, understand customer priorities, and gain efficiencies. This allowed it to reduce costs while improving service quality. In contrast, Ford's online initiatives failed because customers were not interested in internet-connected cars, other automakers adopted Ford's auction strategies, and state laws prevented bypassing dealers for online sales. Being a first mover is risky, as pioneers sometimes implement technologies prematurely before working out details or anticipating responses from customers and partners.

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Lyn MAi Aironas
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110 views3 pages

JetBlue Success vs. Ford Failure Analysis

JetBlue succeeded due to its focus on using information technology to automate processes, understand customer priorities, and gain efficiencies. This allowed it to reduce costs while improving service quality. In contrast, Ford's online initiatives failed because customers were not interested in internet-connected cars, other automakers adopted Ford's auction strategies, and state laws prevented bypassing dealers for online sales. Being a first mover is risky, as pioneers sometimes implement technologies prematurely before working out details or anticipating responses from customers and partners.

Uploaded by

Lyn MAi Aironas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Requirement02: What went right? What went wrong?

CASE ANALYSES:

Identify fundamental factors that contributed to what went right in the case of JetBlue airline
and what went wrong in the case of Ford.  To get the full description of the cases, follow the
link below to download the ebook.  Turn to pages 57-64.

In the case of JetBlue airline, the primary reason for their success was that the airline
tried to be unique. To be different, they runs on information technology. Their success is the
result of understanding customers’ priorities and gaining marked efficiencies through automating
whatever IT can automate.

The following are the strategies used by the JetBlue which contributed to their success:

 Uses Open Skies, a computer program that integrates electronic ticketing, Internet
reservations, and revenue management.
 JetBlue managed to gain strategic advantage by reducing cost, therefore reducing
the price to the customer, and improving a service, especially in terms of on-time
departures and arrivals.
 Its maintenance workers use a maintenance information system from Dash Group
to log all airplane parts and their time cycles, that is, when the parts must be
replaced and where they can be found.
 Uses Blue Performance Application that tracks operational data that is updated
flight by flight.
 Uses wireless devices to report and respond to any irregular event, from weather
delays to passenger injuries.
 The company subscribes to SharePoint, a Web-based portal that enables
electronic updates to flight manuals.
 Management planned a paperless frequent flier program, cockpit-monitoring
cameras transmitting through satellites so that ground crews can monitor activity,
and biometric applications in airport terminals.
 The real-time TV service is offered under a contract with DirecTV.
 Strategic advantage of the late mover
 Low-cost advantage but not sacrificing the quality of their service
 Effectiveness and efficiency

On the other hand, in the case of Ford on the web, some of the reasons behind their
failure because of the lack of attention to details and unable to foresee customers or
business partner response. In this study Nasser was eager to push Ford to the Web. His
ideas were to install devices in vehicles to enable drivers and passengers to access Web,
establish Web site to market parts to auto manufacturers via auctions to encourage price
competition among parts suppliers and push vehicle sales to Web and bypass dealers and
their fees. However, customers not very interested in Web access in vehicles in 2000 and
other car companies learned to use online part auctioning. Also State franchising laws did
not allow car companies to bypass dealers, thus, online sales initiative fails.

Due to these problems, Ford abandoned plan to sell directly to consumers online. The
web site made will be used to select proper model only, but consumers must still utilize a
dealer and sold cars, but not enough to save Nasser’s job.

This case conveys that:

 Ford case shows that being a first mover is risky


 Pioneers sometimes get burned even with careful planning
 Failure occurring because of company trying to be on leading edge
 No prior experience from which to learn
 Implementation costs are greater than anticipated
 Technology ends up losing money for company

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