Management Information System
Management Information Technology
Table of Contents
Executive Summary 3 Introduction to Southwest Airlines 4 Porters Five Force Model for Competitive Strategy 5 Threats of Entry in the Airline Industry 6 Barriers to Entry in the Airline Industry 7 Bargaining Power of Suppliers and Customers in the Airline Industry 7 Substitutes Products for Airlines 8 The Value Chain Analysis 9 Using Information System to gain Competitive advantage 11 Bibliography 14
Executive Summary
The ten major domestic carriers in the United States reported revenue of 145.3 billion dollars in 2012, according to data gathered by Airlines for America (2012). The combine market capitalization of the twelve largest and publicly traded airlines stood at 48 billion dollars as of April 2012 just four billion greater than the value of Starbucks and way below other companies like Facebook and eBay ( Airlines for America, 2012).
Our research will give a detail analysis of the two theories developed by Harvard Business School Professor Michael Porter. Porter posited that in order for businesses to compete an in-depth analysis should be done not only of your direct competitors but also external forces that can help a business performance; Porter labelled this as the Five Forces of Competitive Strategy. Another concept developed by Porter was the Value Chain, the Value Chain breaks the business process into two groups, Porter argues that business should analyse the areas of the Value Chain to see where improvements can be made to enhance performance. Our report will show how Southwest Airlines uses Information system in Porters theories and concept to gain competitive advantage
Introduction to Southwest Airlines
According to information received from Southwest.com (2013), Southwest Airline was incorporated in 1971 by co-founders Rollin King and Herb Kelleher as Air Southwest Company. The company is based in Dallas, Texas and has a staff capacity of over
Table of Contents
Executive Summary 3 Introduction to Southwest Airlines 4 Porters Five Force Model for Competitive Strategy 5 Threats of Entry in the Airline Industry 6 Barriers to Entry in the Airline Industry 7 Bargaining Power of Suppliers and Customers in the Airline Industry 7 Substitutes Products for Airlines 8 The Value Chain Analysis 9 Using Information System to gain Competitive advantage 11 Bibliography 14
Executive Summary
The ten major domestic carriers in the United States reported revenue of 145.3 billion dollars in 2012, according to data gathered by Airlines for America (2012). The combine market capitalization of the twelve largest and publicly traded airlines stood at 48 billion dollars as of April 2012 just four billion greater than the value of Starbucks and way below other companies like Facebook and eBay ( Airlines for America, 2012).
Our research will give a detail analysis of the two theories developed by Harvard Business School Professor Michael Porter. Porter posited that in order for businesses to compete an in-depth analysis should be done not only of your direct competitors but also external forces that can help a business performance; Porter labelled this as the Five Forces of Competitive Strategy. Another concept developed by Porter was the Value Chain, the Value Chain breaks the business process into two groups, Porter argues that business should analyse the areas of the Value Chain to see where improvements can be made to enhance performance. Our report will show how Southwest Airlines uses Information system in Porters theories and concept to gain competitive advantage
Introduction to Southwest Airlines
According to information received from Southwest.com (2013), Southwest Airline was incorporated in 1971 by co-founders Rollin King and Herb Kelleher as Air Southwest Company. The company is based in Dallas, Texas and has a staff capacity of over
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