Presented By: Kelly Bossolt Marta Kovorotna Sarah Smith
Executive Summary Financial Analysis External Analysis Entry & Rivals Industry Customers Substitutes, Complements, Acquisitions Internal Analysis Recommendations
Financial analysis
External Analysis: Entry Deregulation Act Enabled new entrants 150 went bankrupt 8/11 developed merging agreements Created competition Creating lower prices Creating more travelers Rivals Delta, United, American 80% Domestic Market, 67% Trans-Atlantic Market
External Analysis: Industry 2 nd Tier Providers Took on the abandoned and ignored markets Hub – and – Spoke 80% costs were fixed Control Mechanism Sublease for premium (18% higher for Southwest) Efficient
External Analysis: Customers “The ones that could afford to fly, and the ones that couldn’t” Two types of travelers Convenience, time oriented Price sensitive, leisure Two tiered Pricing structure to accommodate both
External Analysis: Substitutes & Complements & Acquisition Substitutes Train, Bus, Boat, Car, Horse Complements Meals, Comfortable seating, Television Imitator JetBlue Southwest acquired and integrated into its own Diversified locations Slightly more sophisticated Leather Seats, Televisions
Recommendations Move to international markets Not necessarily Trans-Atlantic, but integrate new markets Make some improvements in customer satisfaction area.