JetBlue Airways maintains an overall cost-leadership strategy in the airline industry. Partly as a result of its successful use of this business-level strategy, the firm has been highly profitable throughout most of its existence.

1. How does JetBlue Airways business level strategy allow the firm to protect itself from the effects of the five competitive forces? Provide an example of a way that this strategy protects JetBlue from the effects of the five forces: Identify the specific force and provide one example of how JetBlue’s cost leadership strategy insulates the firm from the effects of that force.

2. What potential or real risks does the firm take in pursuing this strategy? Identify two ways that JetBlue faces any of the risks associated with pursuit of a cost leadership strategy.