The Airline industry provides a very unique service to its customers. It transports people with a high level of convenience and efficiency that cannot not be provided by any other industry or substitute.
SkyWest is one of the most successful companies of its time primarily due to its remarkable turnaround of the recent acquisition it made of Atlantic Southeast Airlines ASA in late SkyWest takes on a low-cost carrier LCC business model.
Despite becoming a leading regional carrier in the industry, SkyWest has faced many critical issues causing the company to constantly participate in active strategic management and planning in order to maintain a sustainable competitive advantage within the industry. The entire industry took a major blow from the stock market crash of The economy was heading into a recession, which had a high correlation with the poor financial performance of SkyWest.
The stock market This recession in led to a conflict between Delta and SkyWest that weakened their partnership. SkyWest was hesitant to sue its major partner because they believed it would discourage Delta from sending future business their way.
SkyWest should have been more aggressive in this case and followed through with suing Delta. They could have used the money won in court to become more attractive to other major networking carriers by purchasing larger jets.
This would have allowed them to partner with more majors to obtain a larger customer base between multiple networking companies. Another important strategic issue SkyWest faced was the wind down of their partnership with Midwest Airlines. SkyWest could have turned the fuel increases into a sustainable competitive advantage among the other carriers.
They could have implemented a health rewards program that would encourage customers to remain beneath a certain BMI index and reward them with points that add up to earn free miles. By lowering the BMI index of their customers they would be promoting good health and reducing fuel costs at the same time.
This program would actively engage customers and promote a stronger brand loyalty with SkyWest and its customers. Ongoing negotiations regarding compensation of expenses with partner Delta Airlines created another issue for SkyWest, which resulted in an additional loss of five million dollars in revenue.
This event heightened customers concern for safety and dramatically changed the entire industry overnight. Customers had the perception that smaller aircrafts more common in regional carriers such as SkyWest were more risky.
In reality, they had a lower accidental rate and increased safety standards in recent years. SkyWest should have leveraged this strongpoint and used it to gain new customers by educating them on this safety benefit within their corporation.
They should have made known this valuable fact. This would have allowed SkyWest to steal customers from competitors and deliver the quality service and safety that SkyWest will continue to offer for years to come.SkyWest, Inc., and the Regional Airline Industry in Strategic Profile and Case Analysis Purpose: The US regional airline industry like any industry has experienced some major pitfalls that can be attributed to the current economic global downturn.
As a result, major stakeholders in the industry are looking for better strategies to cope. Among the pressing challenges are; the increasing. Schneider National, Inc.
Porter Five Forces Analysis Strategic Management Essays, Term Papers & Presentations Porter Five Forces Analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry.
Skywest Case Study.
Analytical tools used in this report are: * An analysis of the airline industry macro-environment * A Five-Forces model of the pressures in the airline industry * A study of the drivers of change and industry dynamics * Identification of SkyWest’s main rivals * The airline industry’s key success factors * A strategic group map of the industry * An analysis of SkyWest.
Skywest Case Study Essay. Words May 6th, 22 Pages. Show More. Brandon Cisco 15 March GBA Case Analysis This report examines the factors pertaining to SkyWest, Inc.
(referred to in this document as SkyWest) and its response to all forces present in the airline industry. Overall: Somewhat unattractive industry, SkyWest has an excellent reputation and is operationally efficient which puts them in a good place, but a poor economy, rising costs of fuel and overall costs and increased competition with low-cost carriers hurt the industry's attractiveness 5 Forces Model Summary 5 Forces Model 5 Forces Model Factors.
Markets, Marketing and Strategy Seminar 3 Week 5. Your task for next Monday's in-class tutorial is to locate two substantive sources of information relating to the Porter's 5 .