BUSINESS

 Running head: BUSINESS
Value Adding
Customer’s Name
Academic Institution
BUSINESS 2
Abstract
In order to prosper in business, the product or the service provided must be of value on its own
and must posses the capacity to stand on its own. The modern market is characterized by extreme
competition from numerous companies and organizations dealing with the same products and
services. In order for the products of a particular company to standout, they must be of high
quality. Value adding is a way of differentiating a company from the pack. This paper through
qualitative evaluation of JetBlue Airways case study is going to look at some of the reasons as to
why value adding is an important marketing strategy.
BUSINESS 3
Value Adding
Introduction
JetBlue airways, as stated by Bodouva & Bodouva (2004), began its operation in
February 2000 with the inauguration of services between Ft. Lauderdale in Florida and J. F.
Kennedy airport, New York. Since then, the company is estimated to have served more than
twelve million passengers. Currently, JetBlue operates over 164 flights per day in addition to
serving over twenty destinations in nine states as well as Puerto Rico (Bodouva & Bodouva,
2004). Even though JetBlue operates in a highly competitive environment, its continued
profitability has earned it remarkable loyalty among customers as well as its employees. JetBlue
Airways is one of the best financed start-up airlines in the United States aviation history. Its
initial capitalization is estimated at over $130 million (Holloway, 2008). The initial marketing
strategy of the company was to combine common sense and technology in addition to setting out
an objective of introducing humanity into airline travels as well as making flying an enjoyable
experience. So as to achieve this, JetBlue aimed at being the first airline that did not employ
paper-based recording system. The company introduced computers and information technology
in all sectors of its operations. In addition to efficiency, the company focused on service to their
customers. The company’s main objective, as far as service is concerned, is to become
customers’ advocates based on the perception that customers have the right to be provided with
high quality services at affordable cost. JetBlue airways started from a humble beginning. The
founder of JetBlue, David Neeleman, joined top management of southwest airways, and as a
result of his aggressive, restless hands-on personality and always seeking for new innovative
ways, he created tension and jealousy among other members of the Southwest Airways top
BUSINESS 4
management team. In 1994, Neeleman stopped working for the Southwest Airways. After
leaving Southwest Airways, Neeleman launched WestJet, a carrier that became extremely
successful. He developed a novel e-ticketing reservation technique referred to as Open Skies
(Bodouva & Bodouva, 2004). Based on his experience in aviation, Neeleman decided to develop
a new and larger airline. This idea was motivated by the fact that tastes of customers change and
therefore it would be important to adapt persistently to these changes. Neeleman intended to
develop the new airline based on Southwest’s marketing strategy of stimulating demand in
underserved markets with low fares (Bodouva & Bodouva, 2004). This strategy was to be
achieved through the use of highly competent employees and aircrafts. Another strategy of
accomplishing this objective was through flying bigger planes for longer distances in addition to
offering an enhanced overall passenger experience. Another strategy of achieving success at such
an early stage was excelling in the aspects that really distinguish the brand from others at a
significantly low cost. Comfort, courtesy and punctuality were the guiding principles of the
Airways. These principles were extended to all levels of the company’s operation, externally and
internally and have resulted in the creation of a distinct customer appeal.
BUSINESS 5
Value Adding
In the modern market, customers look at purchases from a cost-benefit analysis. They
evaluate whether the benefit associated with a particular product is equal or outweigh the cost
(Helbig, 2007). However, different customers have different opinions as far as definition of
benefits is concerned; and due to that fact, it is important that the value being added to a
particular product or service be beneficial (Helbig, 2007). Value adding can be defined in
different versions depending on the type of services or commodities a particular company deals
with. The fundamental objective of value adding is to increase the worth of services and goods a
company deals with, in order to attract and retain as many customers as possible in addition to
increasing profits. The decision to go into value adding should not be taken lightly; it has more
risks associated with it. However, the rewards are greater than the risk involved. In additi