2. The fouractions frameworkon blue ocean strategy to reduce, create, raise
and eliminate industry practices to create a Blue Ocean fromthe industry
Red Ocean.
A New
Value
Curve
Reduce
Eliminate
Create
Raise
FOUR ACTIONS FRAMEWORK.
3. Four actions Frame Work
Applied to Jet Blue
REDUCE:
Well below industry standard.
• Costly hub and spoke system avoided.( followed by
United and American ).
• Avoided travel agents ( average cost USD14 per ticket )
• Used only one type of aircraft Airbus 320 ( therefore had
to service and maintain only one type of aircraft and
avoided complications of service and maintenance for
other type of aircrafts)
4. Four actions Frame Work
Applied to Jet Blue
Create:
Somethings that are never offered by the industry.
• Unique flying experience. ( individual TV monitors, choice
of channels, leather seats, more legroom, direct routes and
an affordable price. )
• Online ticket sales and reservation agents answer calls
from home thus reducing ticket costs and avoiding
overheads.
• Paperless cockpit which equips pilots with laptops that
speed up maintenance checks and turnaround times at
gates.
5. Four actions Frame Work
Applied to Jet Blue
Raise:
Factors which should be raised well above industry
standards.
• Flying experience.
• Lower / Discounted / Affordable fares
• Direct routes.
• Industry leading high rate of on time arrivals.
6. Four actions Frame Work Applied to Jet Blue
Eliminate:
Factors which the industry takes for granted.
• Flying experience is the same across the industry.
• High Fares.
• Hub and Spoke system.
• Ticket bookings through travel agents.
• Paper filled cockpits.
• Different types of aircrafts need to be operated.
• Profitability from the beginning.
7. Conclusion:
The Four Actions Frame work of the Blue
Ocean Strategy applied on Jet Blue case study
shows that David Neelman’s and with his years
of experience in the airline industry new
exactly what to Reduce, Create, Raise and
Eliminate which ensured that Jet Blue set the
benchmark in the airline industry and
broke all myths / practices that were
taken as granted in the industry.
