Jet Blue's decision to replace its cloth seats with leather appeared on the surface to be a welcomed new perk for customers. Whi
le that was true, it also represented a cost cutting opportunity for the airline since the leather seats lasted much longer and were easier/quicker to clean. As such, the decision represents a(n) _______________________ on Jet Blue's part.
Value innovation was created or formulated by Renne Mauborgne and W Chan Kin.
Value innovation can be explained as a process where companies introduces upgrades which are designed or created to achieving product diffenciation and low cost. It can also be explained as where the values are created through innovation, which subsequently add value to the existing market.
In this case, Jet Blues decision in replacing cloth seats with leather is considered as value innovation, because it increases their value and lower the cost the airline will be spending on replacing the cloth seat, because the leather seats will last longer.
In a free market economy, the price and distribution of goods and services is governed by the law of supply and demand. Producers or firms produce those services and goods that consumers are willing and able to pay for in the market.
<em>The Strait of Malacca is known as a narrow spread of water in between the peninsula in Southeast Asia commonly known as Malay Peninsula and the island of Sumatra in Indonesia. The strait is commonly used as the shipping channel between two of the main water bodies i.e. Indian Ocean and Pacific Ocean. </em>
