SkyWest Strategic Audit Clear Vision, Inc. Stefan Johnson Allan Padua

SkyWest Strategic Audit
Clear Vision, Inc.
Stefan Johnson
Allan Padua
Mike Richardson
Rachel Sa-Onoy
Libby Schuster
SkyWest, Inc.
SkyWest Inc. SWOT Analysis
Strengths
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
MESA Air Group SWOT Analysis
Strengths
•Partnerships with United Airlines,
U.S. Airways, Midwest Airlines, and
Delta
•Good Reputation for customer
service
Opportunities
•Consolidate fleet and resources
•Focus on customer satisfaction
Weaknesses
•Filed for bankruptcy in 2009 to
reduce fleet size
Threats
•Increasing cost of fuel
•State of economy
•Loss of contracts with major airlines
Pinnacle Airlines SWOT Analysis
Strengths
•Ranks high in customer satisfaction
•Major airline partnerships with Delta
and Northwest Airlines
Opportunities
•Focus on customer satisfaction and
safety
•Pursue new contracts to increase
scope of service
Weaknesses
•Involved in airline disaster when a
plane crashed into a home in 2009
Threats
•Increasing fuel costs
•State of economy
•Loss of contracts with major airlines
Key Success Factors
•
•
•
•
Acquire partnerships with major airlines
High customer Satisfaction
Strong safety image
On-time arrivals
Key Success Factors
SkyWest Inc.
Mesa Air
Group
Pinnacle
Airlines Corp.
Weigh
t
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
Key Success
Factors
Total
1.0
4.05
3.5
3.6
Financial analysis
Net Profit Margin
2009
2008
2007
2006
2005
2004
SkyWest Inc.
3.2%
3.2%
4.7%
4.7%
5.7%
7.1%
Mesa Air
Group
Pinnacle
Airlines
N.A.
(2.2%)
(6.3%)
2.7%
5.0%
2.9%
5.0%
(1.3%)
3.9%
9.4%
3.1%
6.4%
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
Pinnacle
Airlines
N.A.
7.75
7.45
3.69
5.61
7.70
11.61
19.23
11.3
2.11
11.30
(6.43)
Porter’s Five
Forces Model
Competitive Rivalry
Buyer’s Bargaining Power
Supplier’s Bargaining Power
Availability of Substitutes
Threat of New Entrants
(Strong)
(Strong)
(Strong)
(Weak)
(Weak)
Attractiveness of the Industry
Industry as a Whole
(Not Attractive)
Historical View of Strategies (Typology)
Problems
• Recession
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
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
Sources of Resistance
Ethical Implications of Recommendations