SkyWest Strategic Audit
description
Transcript of SkyWest Strategic Audit
![Page 1: SkyWest Strategic Audit](https://reader036.fdocuments.in/reader036/viewer/2022062305/5681677f550346895ddc881c/html5/thumbnails/1.jpg)
SkyWest Strategic Audit
Stefan JohnsonAllan PaduaMike RichardsonRachel Sa-OnoyLibby SchusterClear Vision,
Inc.
![Page 2: SkyWest Strategic Audit](https://reader036.fdocuments.in/reader036/viewer/2022062305/5681677f550346895ddc881c/html5/thumbnails/2.jpg)
SkyWest, Inc.
![Page 3: SkyWest Strategic Audit](https://reader036.fdocuments.in/reader036/viewer/2022062305/5681677f550346895ddc881c/html5/thumbnails/3.jpg)
SkyWest Inc. SWOT AnalysisStrengths Weaknesses
•Strong reputation for safety, on time arrivals, and customer service•Largest independently owned regional airline•Partnerships with United and Delta•Positive employee relations
•Smaller aircraft are perceived by public as being less safe•ASA ranked near bottom in customer satisfaction•Regional carriers limited geographically and can be affected by bad weather
Opportunities Threats
•Expand outside the U.S. to China, Brazil, and Mexico•Diversify operations to reduce dependence on Delta and United
•State of economy affect business•Rising costs of fuel•Pressure from major partners to accept lower fees
![Page 4: SkyWest Strategic Audit](https://reader036.fdocuments.in/reader036/viewer/2022062305/5681677f550346895ddc881c/html5/thumbnails/4.jpg)
MESA Air Group SWOT Analysis
Strengths Weaknesses
•Partnerships with United Airlines, U.S. Airways, Midwest Airlines, and Delta•Good Reputation for customer service
•Filed for bankruptcy in 2009 to reduce fleet size
Opportunities Threats
•Consolidate fleet and resources•Focus on customer satisfaction
•Increasing cost of fuel•State of economy•Loss of contracts with major airlines
![Page 5: SkyWest Strategic Audit](https://reader036.fdocuments.in/reader036/viewer/2022062305/5681677f550346895ddc881c/html5/thumbnails/5.jpg)
Pinnacle Airlines SWOT Analysis
Strengths Weaknesses
•Ranks high in customer satisfaction•Major airline partnerships with Delta and Northwest Airlines
•Involved in airline disaster when a plane crashed into a home in 2009
Opportunities Threats
•Focus on customer satisfaction and safety•Pursue new contracts to increase scope of service
•Increasing fuel costs•State of economy•Loss of contracts with major airlines
![Page 6: SkyWest Strategic Audit](https://reader036.fdocuments.in/reader036/viewer/2022062305/5681677f550346895ddc881c/html5/thumbnails/6.jpg)
Key Success Factors•Acquire partnerships with major airlines•High customer Satisfaction•Strong safety image•On-time arrivals
![Page 7: SkyWest Strategic Audit](https://reader036.fdocuments.in/reader036/viewer/2022062305/5681677f550346895ddc881c/html5/thumbnails/7.jpg)
Key Success Factors SkyWest
Inc.Mesa Air
GroupPinnacle Airlines Corp.
Key Success Factors
Weight
Rating
Weighted Score
Rating Weighted Score
Rating
Weighted Score
Major Partnerships
.35 5 1.75 4 1.4 4 1.4
Customer Satisfaction
.3 3 0.9 3 0.9 4 1.2
Safety Image .2 4 0.8 3 0.6 2 0.4
On-time Arrivals
.15 4 0.6 4 0.6 4 0.6
Total 1.0 4.05 3.5 3.6
![Page 8: SkyWest Strategic Audit](https://reader036.fdocuments.in/reader036/viewer/2022062305/5681677f550346895ddc881c/html5/thumbnails/8.jpg)
Financial analysis
2009 2008 2007 2006 2005 2004
SkyWest Inc. 3.2% 3.2% 4.7% 4.7% 5.7% 7.1%
Mesa Air Group
N.A. (2.2%) (6.3%) 2.7% 5.0% 2.9%
Pinnacle Airlines
5.0% (1.3%) 3.9% 9.4% 3.1% 6.4%
Net Profit Margin
Debt-to-Equity Ratio
2009 2008 2007 2006 2005 2004
SkyWest Inc. 2.01 1.96 1.99 1.97 2.43 0.99
Mesa Air Group
N.A. 7.75 7.45 3.69 5.61 7.70
Pinnacle Airlines
11.61 19.23 11.3 2.11 11.30 (6.43)
![Page 9: SkyWest Strategic Audit](https://reader036.fdocuments.in/reader036/viewer/2022062305/5681677f550346895ddc881c/html5/thumbnails/9.jpg)
Porter’s Five Forces Model
Competitive Rivalry (Strong)Buyer’s Bargaining Power (Strong)Supplier’s Bargaining Power (Strong)Availability of Substitutes (Weak)Threat of New Entrants (Weak)
![Page 10: SkyWest Strategic Audit](https://reader036.fdocuments.in/reader036/viewer/2022062305/5681677f550346895ddc881c/html5/thumbnails/10.jpg)
Attractiveness of the Industry
Industry as a Whole (Not Attractive)
![Page 11: SkyWest Strategic Audit](https://reader036.fdocuments.in/reader036/viewer/2022062305/5681677f550346895ddc881c/html5/thumbnails/11.jpg)
Historical View of Strategies (Typology)
![Page 12: SkyWest Strategic Audit](https://reader036.fdocuments.in/reader036/viewer/2022062305/5681677f550346895ddc881c/html5/thumbnails/12.jpg)
Problems•Recession
![Page 13: SkyWest Strategic Audit](https://reader036.fdocuments.in/reader036/viewer/2022062305/5681677f550346895ddc881c/html5/thumbnails/13.jpg)
Implementation Plan•Advertise to Increase Brand Awareness•Member Reward/Incentive Program•Repurchase Shares•Upgrade Technology and Decrease Labor
Costs•Improve Flight Portfolio
▫Increase Fleet in Operation▫Seek Out Partners, Absorption of Smaller
Airlines▫ Expand to Division of Low Cost Carriers
and Regional Routes
![Page 14: SkyWest Strategic Audit](https://reader036.fdocuments.in/reader036/viewer/2022062305/5681677f550346895ddc881c/html5/thumbnails/14.jpg)
Contingency Plan•Failing Plan:
▫Immediate Reissuance of stock▫Consolidation Though Sale of Weak
Branches▫Reduce Service (cut out rural areas)▫Seek Further Partnerships and Mergers
•Company Failure:▫File Chapter 11 to Reorganize the
Company▫Sell Off Assets to Repay Debt
![Page 15: SkyWest Strategic Audit](https://reader036.fdocuments.in/reader036/viewer/2022062305/5681677f550346895ddc881c/html5/thumbnails/15.jpg)
Sources of Resistance
![Page 16: SkyWest Strategic Audit](https://reader036.fdocuments.in/reader036/viewer/2022062305/5681677f550346895ddc881c/html5/thumbnails/16.jpg)
Ethical Implications of Recommendations