Skywest Case What are the Company's Vision/Mission and Objectives?

Corporate Strategy

Business (Or Competitive) Strategy

Industry Analysis

Competition from Rival Sellers

Competition from Potential New Entrants to the Industry

Competition from Producers of Substitute Products

Supplier Bargaining Power

Customer Bargaining Power

Company Situation Analysis

Strengths

Weaknesses

Opportunities

Threats

What are the Company's Vision/Mission and Objectives?

The company was founded with a vision to be able to connect passengers to smaller airports and smaller routes. It objectives were to maintain a high level of customer service, develop and maintain a strong safety image, maximize on-time arrivals and acquire new aircraft in order to service their customers without compromising their 'scope' contracts.

The company sought to achieve this vision by using strategies, and having alliances and partnerships with other major airlines, and to this end was successful in doing so. Currently, the company envisions itself serving emerging markets such as China, Brazil and Mexico.

Corporate Strategy

The company, SkyWest has been looking at a variety of strategies concerning with how the business environment has been. Initially with the set up of the business in 1972 the company was looking at stability and expansion in terms of alliances, increasing internal capabilities at the same time. The initial step it took was to acquire a company by the name of Sun Aire, which was an external expansion, followed by an alliance with Western Airlines, and then internal expansion by going public and expanding its ownership strength.

Corporate culture tends to plat a very important role in the implementation of strategies, as it is the human resources of any organization that play the most important role in running the company. If the culture is friendly with employees being satisfied, there is a greater...

This lent the company flexibility as satisfied employees are more prone to be motivated and willing to participate in change.
Business (Or Competitive) Strategy

SkyWest airlines' business strategy is cost leadership where it is a low-cost carrier, offering a timely, reliable and safe service, without any luxurious frills.

Industry Analysis

The company belongs to the U.S. airline industry operating as a low-cost carrier. The industry analysis is as follows:

Competition from Rival Sellers

The five regional rivals are Mesa Air Group, ExpressJet, Republic Airways and Pinnacle Airlines. However the operating revenue of SkyWest is nearly thrice as much as its second largest rival Republic Ariways (exhibit 5).

Competition from Potential New Entrants to the Industry

This threat is low, as the airline industry is pressured due to high fuel costs and many of the airline companies are making losses, or are barely surviving. Economically, this is not a feasible time to enter as the world is in a recession other reasons for the threat of new entrants being low is that there is a high sunk cost required for setting up airlines, and competition is severe in the mature market which can prove to be a deterrent.

Competition from Producers of Substitute Products

Substitute products for air travel are either through the sea of by road, both of which are tedious, making air travel as a genre not being substitutable in the long run for its convenience and speed.

But as far as substitute categories of domestic air travel are concerned, there are networks, regional and low cost carriers and competition among these is high as there are many companies that operate…