Q3 - OE_Strengths
What do you see as Delta’s particular strengths?
"Their approach to segmenting the market. They have a better understanding of how to monetize or get more money out of travelers' wallets for the service that they provide. They run a very good operation. Balance sheet, financial discipline."
Q4 - OE_Weaknesses
What do you see as Delta’s particular weaknesses?
"The primary weakness as an investment is that it's in an industry that investors are still learning to understand, and as a result, there's going to be a tremendous amount of volatility in the stock. From a company perspective, not really. They may be on the verge of under-investing a little bit relative to peers. We're going to have newer fleets, but that's just
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"We have outperform ratings on Southwest and Delta, and market perform ratings on American and United."
Q12b - OE_PreferredInvestmentWhy
Why do you say that? [Reasons for preferred investment]
"Southwest and Delta. Southwest has a differentiated business model and is able to offer a better service at a lower cost across the markets it serves, allowing it to sustain a higher level rate of return. Delta has a better network than the other network carriers American and United, and has a better understanding of how to maximize the revenue potential within the cabins and the service it's flying."
Q12d
Why did you give that rating? [Reasons for overall opinion of the airline industry as an investment opportunity]
"4 [6-pt scale]. The fundamentals are underestimated. The earnings power of the industry through the cycle is underestimated. But you do have a lot of cyclical risk toward the end, so it makes a little bit less of a 5 or a 6. You've also seen the stocks run for the last five, six months. As a result of that run, you've lost some of the potential for significant outperformance. There's still potential for outperformance but it's not as significant as it was five months
Southwest Airlines Co., established in 1971 by Rollin King and Herb Kelleher, began its operations with only three Boeing 737 aircrafts. It is headquartered in Dallas, Texas(Hawkins, Misra, & Tang, 2012). Southwest is well known as one of the largest low-cost carriers. With this strategy, the company has dramatically grown up and deeply rooted in the US airline industry. Now, Southwest Airlines Co. operates 633 aircrafts to 93 domestic cities and the highest number of passengers used Southwest Airlines to fly around U.S in Jan 2014 (Hawkins, Misra, & Tang, 2012). To accomplish more than 40th consecutive years of both profitability and competitiveness, Southwest Airlines Company is constantly trying to find the routes to differentiate itself from other domestic carriers (Hawkins, Misra, & Tang, 2012).
Bargaining Power of Customers (high)- Customers has several options when it comes to flying. But the main attraction to customers are low prices and Southwest makes it known that they have some of the lowest airfares. The only way Southwest can take back the power is by offering direct flights to cities that other airliners do not offer. Besides the small occurrence of having a direct flight to a city that no other airline has, Southwest
While Frontier and Delta are both popular choices of airlines for Americans, Delta has become more of a household name because of their friendlier service, more comfortable cabins, and their limited extras fees. Frontier airline still is a worthy competitor by being cheaper, but they also have many added on fees for things that are free with Delta. Overall, Delta knows how to take better care of their customers and make sure everyone is satisfied.
Two of the largest competing airlines in America may seem to have a lot in common to a consumer’s eye: big commercial planes, friendly staff, one free carry-on bag, complimentary snacks. Maybe the biggest comparison of them all is how much of the airline market these two companies take up. But for every similarity, there must be a difference. Beyond contrasting ticket prices, there are many fronts on which to compare Southwest Airlines and American Airlines. To begin when the companies began, American Airlines was established approximately 40 years sooner than Southwest Airlines as a result of a merger. In terms of people, Southwest Airlines currently has just about half the number of employees that American does. However, to truly compare the two companies, the organization itself must be researched and analyzed. Southwest Airlines and American Airlines appear to be very different to this day in terms of organizational culture, team dynamics, and conflict and negotiation.
Southwest Airlines is a major US airline established in 1967 that services a multitude of cities in all 50 states and beyond. The company is known for its outstanding quality in providing services and it 's cost effective ticket prices to its many passengers throughout the nation. This airline is based in the southwestern United States, in the city of Dallas Texas, and due to the tremendous number of airplanes that it has and the timely service that it provides to its passengers, this airline services more US passengers than any other airline. This airline also has the largest fleet of planes of any economical or low-cost airline service in the world and employees more than 45,000.
The company does a lot of technology work. The best stock i had was Microsoft. I bought 111 shares of it and it went up 4.41% since i bought it. I made a total of $260 off of it. This was the stock that i had originally wanted to invest all my money into but i backed out of my plan and invested into multiple stocks to decrease my risk. The reason i had invested into seven stocks was that i knew some would drop and some would gain so i wanted to balance out my money that way if one stock started doing really bad i would have another one doing good, decreasing my risk. When i bought my stocks i decided that i would just leave them alone and see how the gain or decrease. I didn't want to keep selling and buying more. This strategy didn't work out so well because my US oil stock dropped so low. i should've sold it when it was reasonable and bout something that would make me money. Later down the road that stock would make me a lot of money when the price of oil goes up and that why i think i kept it instead of selling
$18. 30 Day’s high $17.55 trade time Apr 22, 2017, Days low $17.55 trade time change- 1.14% at 52-week high $22.51 the previous close 17.40 and low at 52-weeks $13.06 open at 17.30 the Beta 0.74 The volume was 53.823 Avg.vol 112.122 looking at the above figures the stock they are in a good position. One of their competitors is Amazon. Both companies are star rating the stocks are doing great. Overstock have had a constant and sturdy growth. The online retail giant is a threat to brick-and-mortar stores. Theirs some negative profitability, rising cost and some feel overstock price, put them in a danger zone with the stock market. Overstock up against the competitor such as Amazon, and Wayfair has declined some but not a lot. They have not deteriorated to the point they are in trouble with stock. The profitability of overstock is growing 13% compounded annually from 2002 through 2016; they have lost yet
The company does not seem to be too optimistic about its future either. They expect total sales to be down between 3.2% and 4.3% according to their press release.
United Airlines used questionnaires to classify their potential customers by their motivations and identified nine motivational segment profiles which are: global executives, schedule optimizers, corporate troopers, mile accumulators, reluctant travelers, tour takers, quality vacationers, travel seekers, and frugal flyers (The Times 100, 2003, p. 2). The reasons why travelers choose to fly United varies. For example, some may choose this airline because of price, while others choose it because of their frequent flyer program, schedules, or other services.
The result of this objective is the third largest commercial carrier in the world, having a strong presence in major hubs such as Atlanta, Dallas, Cincinnati, and Salt Lake City (Rivkin 8).
The outlook for growth is risky considering this company is very volatile, but if corrections are made to better the industry (i.e. expand
"It is a very well-run company. They have a very specific and understandable strategy. I like their competitive position within their respective market. There's a lot of positives. It's a great business. The only reason we don't own it is because the market has it too expensive and we're a value fund. We're waiting for the day to buy it, it's just too expensive right now. There's really nothing about it we don't like. I really like the market they're in and it's extremely well managed. I expect nothing but good things from the company in the future."
Southwest Airlines Company (Southwest Airlines or ‘the Company’ SWA) is a passenger airline that provides scheduled passenger and freight transportation services. The Company primarily provides scheduled services throughout the US and near-international markets. It is headquartered in Dallas, Texas and employs 48,000 people and serves over one hundred million customers annually (“Southwest,” 2015). Southwest Airlines has accumulated over forty years of revenue and is one of the supremely flown airlines in the United States of America (Dess, et al, 2014, p. C137). Recognized for dominating the national or domestic airline market, Southwest Airlines’ diligence has built an
XYZ has developed several strengths that we will continue to maximize to help us develop a sustainable competitive advantage. These key strengths are: