Eskywest Inc. Case
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 …show more content…
The business travelers tend to make up most of the market because they used the regional airlines to commute to and from locations that were considered too far to drive. They were also the most profitable because the larger customers purchased flights that were bought at a premium due to their short-notice or unexpected plan for flight. The Second type of buyers in the market were the leisure travelers that was a much smaller group of buyers because they traveled less often and were more price sensitive to the ticket sales. With their being several airline businesses in the industry all offering the same service, switching costs for tickets from airline to another tend to be very high. Airline industries have a fixed price on airline tickets preventing from buyers being able to bargain a lower price. Since most if not all customers search airline tickets based on price this makes the bargaining powers of buyers in the industry to be weak to moderate.
Bargaining Power of Suppliers:
In the regional airline industry there are two main types of suppliers Brazil’s Empresa Brasilerira de Aeronautica SA and Bombardier. With their only being two different types of suppliers in the regional airline industry that have two differentiated products, makes the demand for them to be very high. Since these are the only two for the regional airlines it makes the bargaining power of suppliers to be very strong allowing them to change higher prices without losing their service to another manufacturer.
3-Internal
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 …show more content…
The business travelers tend to make up most of the market because they used the regional airlines to commute to and from locations that were considered too far to drive. They were also the most profitable because the larger customers purchased flights that were bought at a premium due to their short-notice or unexpected plan for flight. The Second type of buyers in the market were the leisure travelers that was a much smaller group of buyers because they traveled less often and were more price sensitive to the ticket sales. With their being several airline businesses in the industry all offering the same service, switching costs for tickets from airline to another tend to be very high. Airline industries have a fixed price on airline tickets preventing from buyers being able to bargain a lower price. Since most if not all customers search airline tickets based on price this makes the bargaining powers of buyers in the industry to be weak to moderate.
Bargaining Power of Suppliers:
In the regional airline industry there are two main types of suppliers Brazil’s Empresa Brasilerira de Aeronautica SA and Bombardier. With their only being two different types of suppliers in the regional airline industry that have two differentiated products, makes the demand for them to be very high. Since these are the only two for the regional airlines it makes the bargaining power of suppliers to be very strong allowing them to change higher prices without losing their service to another manufacturer.
3-Internal