Skywest Case Study - 5 Forces Analysis
Dennis Marriott
Strategic Management
Fall 2011
Sky West, Inc.
1. The dominant characteristics of the U.S. regional airline industry are they are mostly controlled by larger airlines or have a contract with them to secure flights. . Most regional airlines are there for smaller communities to access a flight to the major hubs. Most of the regional airlines service to major airports, so they are connected or part of a servicing contract with national airlines, who in turn are part of the operations of the global airline industry. Smaller aircraft and retired aircraft from the national and global airline industry are used for regional flights.
3. Post- 9/11 fear of flying, rising fuel costs, seasonal fluctuations, and increased competitive pressures from low-cost carriers are causing change in the regional airline industry. Mergers and consolidations are more likely, and regional airline industry could continue to lose income. Regional airlines have to face fierce competition to be able to acquire contracts with the majors, so there are more unrealistic requirements that are expected from them.
4. The key factors that determine success for the companies in regional airline industry are securing a partnership with a major airline, expansion of partnerships to include new routes and additional departures, and increasing its range.
5. SkyWest is employing a focused differentiation strategy and has been seeking to fulfill customer satisfaction through valuable and reliable flights. It is trying to achieve greater levels of customer satisfaction than its competition.
6. SkyWest’s competitively important resources include its service contracts with major airlines, its more efficient operation strategy from two formerly separate companies, and high rankings of customer satisfaction. It is capable of larger reach than other regional airlines. Its weaknesses in the external environment are rising fuel costs and pressure from the major airlines. It has liabilities
Strategic Management
Fall 2011
Sky West, Inc.
1. The dominant characteristics of the U.S. regional airline industry are they are mostly controlled by larger airlines or have a contract with them to secure flights. . Most regional airlines are there for smaller communities to access a flight to the major hubs. Most of the regional airlines service to major airports, so they are connected or part of a servicing contract with national airlines, who in turn are part of the operations of the global airline industry. Smaller aircraft and retired aircraft from the national and global airline industry are used for regional flights.
3. Post- 9/11 fear of flying, rising fuel costs, seasonal fluctuations, and increased competitive pressures from low-cost carriers are causing change in the regional airline industry. Mergers and consolidations are more likely, and regional airline industry could continue to lose income. Regional airlines have to face fierce competition to be able to acquire contracts with the majors, so there are more unrealistic requirements that are expected from them.
4. The key factors that determine success for the companies in regional airline industry are securing a partnership with a major airline, expansion of partnerships to include new routes and additional departures, and increasing its range.
5. SkyWest is employing a focused differentiation strategy and has been seeking to fulfill customer satisfaction through valuable and reliable flights. It is trying to achieve greater levels of customer satisfaction than its competition.
6. SkyWest’s competitively important resources include its service contracts with major airlines, its more efficient operation strategy from two formerly separate companies, and high rankings of customer satisfaction. It is capable of larger reach than other regional airlines. Its weaknesses in the external environment are rising fuel costs and pressure from the major airlines. It has liabilities