Alaska Airlines
Alaska Airlines
Strategic Management Model
Linda Gay Cahill
Table of Contents:
Strategic Profile Company Introduction 3
Strategic Analysis PEST Analysis (Political, economic, social & technological factors) 4 Resource-Based View 6 Value Chain Analysis 8 SWOT Analysis 11
Strategy recommendations 13
References 14
Company Introduction
Alaska Airlines is the ninth–largest U.S. airline based on passenger traffic and is the dominant U.S. West Coast air carrier. Headquarter in Seattle, Washington, Alaska carriers more passengers between the state of Alaska and the Lower 48 than any other airline. During recent years it has expanded significantly to serve more U.S. East Coast, Mexican and Canadian destinations.
Long know for its Alaskan roots, symbolized by the Eskimo painted on the tail of the aircraft, Alaska Airlines offers a friendly and relaxed style of service, one that passengers have came to appreciate as the “Alaska Spirit.” The airline is known for embracing innovative technology to improve the customer experience.
The carrier traces its roots back to 1932, when Linious “Mac” McGee airways started flying his three-seat Stinson between Anchorage and Bristol Bay, Alaska. A merger with Star air service in 1934 created the largest airline in Alaska, which eventually became Alaska Airlines. Alaska and its sister carrier, Horizon, are owned by Alaska Air Group.1
Alaska Airlines has a dominant market share serving Alaska. Unlike the rest of the economy Alaska has been seeing increasing significant revenues from oil business and tourism. Air travel is the states largest form of transportation because of the geography of the state and its arctic climate. There are over 1,100 airports in Alaska and over 3,000 landing strips in the state. Thirteen percent of revenue generated by tourism goes to air travel. Alaskan travelers fly on average nine times per year compared to the main land US
Strategic Management Model
Linda Gay Cahill
Table of Contents:
Strategic Profile Company Introduction 3
Strategic Analysis PEST Analysis (Political, economic, social & technological factors) 4 Resource-Based View 6 Value Chain Analysis 8 SWOT Analysis 11
Strategy recommendations 13
References 14
Company Introduction
Alaska Airlines is the ninth–largest U.S. airline based on passenger traffic and is the dominant U.S. West Coast air carrier. Headquarter in Seattle, Washington, Alaska carriers more passengers between the state of Alaska and the Lower 48 than any other airline. During recent years it has expanded significantly to serve more U.S. East Coast, Mexican and Canadian destinations.
Long know for its Alaskan roots, symbolized by the Eskimo painted on the tail of the aircraft, Alaska Airlines offers a friendly and relaxed style of service, one that passengers have came to appreciate as the “Alaska Spirit.” The airline is known for embracing innovative technology to improve the customer experience.
The carrier traces its roots back to 1932, when Linious “Mac” McGee airways started flying his three-seat Stinson between Anchorage and Bristol Bay, Alaska. A merger with Star air service in 1934 created the largest airline in Alaska, which eventually became Alaska Airlines. Alaska and its sister carrier, Horizon, are owned by Alaska Air Group.1
Alaska Airlines has a dominant market share serving Alaska. Unlike the rest of the economy Alaska has been seeing increasing significant revenues from oil business and tourism. Air travel is the states largest form of transportation because of the geography of the state and its arctic climate. There are over 1,100 airports in Alaska and over 3,000 landing strips in the state. Thirteen percent of revenue generated by tourism goes to air travel. Alaskan travelers fly on average nine times per year compared to the main land US
References: 1) 3 of 9 big airlines profit as industry improves in 3rd, Trading Markets.Com, retrieved February 9, 2010 from www.tradingmarkets.com 2) Alaska Airlines Company Facts, August 2009, retrieved February 2, 2010 from www.alaskaair.com 3) Alaska Airlines Executive Leadership, August 1009, Fleet Information, retrieved February 2, 2010 from www.alaskaair.com 4) Alaska Airlines Company Cargo Facts, January 2008, retrieved February 2, 2010 from www.alaskaair.com 11) ATA Airlines Discontinues all Operations. Retrieved February 6, 2010 from http://www.ata.com 12) Dillingham, Gerald L 13) The Strategic Management Planning Process, NetMBA Business Knowledge Center, retrieved January 14, 2010 from www.netmba.com.strategy/process 14) Research and Markets: Alaska Air Group, Inc 15) Theories Used in IS Research, Resource based View of the Firm, York University, retrieved January 26, 2010 from www.istheory.yorku.ca/rbv.htm 16) Vecchio, John Dell (2008, March 9) 17) Maxon, Terry. American Airlines’ January traffic edges higher. The Dlaasa Morning News. February 4, 2010. Retrieved February 8, 2010 from www.dallasnews.com 18) Soble, Brendan