Skywest Cas

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eSkyWest, Inc. case Analysis
Written Case Analysis

Table of Contents

1. Introduction…………………………………………………………………………………………………………… pg. 2

2. External Analysis……………………………………………………………………………………………… pg. 3-10

3. Internal Analysis……………………………………………………………………………………………… pg. 10-14

4. Key Decisions………………………………………………………………………………………………………….. pg.14- 15

5. Alternatives…………………………………………………………………………………………………………... pg. 15

6. Recommended Decisions………………………………………………………………………………… pg. 16

7. Appendices………………………………………………………………………………………………………….. pg. 17-19

1-SkyWest Airline Introduction

SkyWest, Inc. was found in 1972 by Raplph Atkins in St. George, Utah. Initially this was only a charter type of flight and was mostly used by businessman travelling between Salt Lake City and St. George, Utah. But with business partnerships and merging with companies like Western Airlines and later with Delta airlines partnerships the network of SkyWest airlines were much broad. Later in near future with more partnerships with United Airlines and Midwest Airlines helped the company to grow rapidly and in 2005 SkyWest acquired Atlantic Southeast Airlines. Currently SkyWest is operating in overseas too for instance Canada meanwhile it runs its operations in 34 states and nearly in 158 cities. Sky West case analysis report will help the reader to understand especially about the SkyWest Inc. and the general economic conditions of the regional airline industry of US at a micro environmental level along with some introductions of market size and market growth of the airline industry. The report is organized under the following main topics as follows. External analysis, internal analysis, Key decisions, alternatives and recommended decisions along with some charts and tables that helps the arguments for better understanding. Moving on when we consider the industry as a whole it had a decline due to the economic recession in 2009 that affected the growth rate of the airline industry and in terms of market size the revenue from passenger per mile decreased in 2008 compared to 2007 and this is an early effect of the economic recession, we shall discuss the threats and alternatives as we go along. In five year period from 2004 to 2008 the industry’s combined revenue has increased almost with a double effect from $4.7 billion to $8.4 billion (Please refer the epilogue table # 1). As part of the introduction let’s identify the vision statement and the company strategy. Company strategy is low-cist strategy and its competitive advantage is achieved by lower cost than its competitors. Vision statement is “Atlantic Southeast Airlines is committed to connecting more people, more often; to the places they love, by becoming the world's first super regional airline.” Moving on we would concentrate on the external analysis of this company.

2-External Analysis
Economic Factors
The external analysis assess the company’s external environment by looking at its Marco-environmental factors including the size of the market in terms of unit sale and sales volume as well as the market growth. It also examines the number and size of buyers and sellers in the environment, the pace of technological change or innovation, the economies of scale, geographic boundaries, the market supply and demand conditions, learning curve effects of the market and the differential products available. We will now evaluate SkyWest’s external environment by first looking at its economic factors. Size and Market Growth rate:

The first economic factor addressed is the size of the company and its growth rate. SkyWest is the largest independently owned regional airline that is partnered with two of the major airlines; United and Delta. Alone SkyWest has more than 11,000 people representing their company none of which are unionized. Through the partnership with United and Delta, SkyWest was limited to the size of the...
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