Skywest Case Study - 5 Forces Analysis Essay

794 Words4 Pages
Dennis Marriott
Strategic Management
Fall 2011
Sky West, Inc.
1. The dominant characteristics of the U.S. regional airline industry are they are mostly controlled by larger airlines or have a contract with them to secure flights. . Most regional airlines are there for smaller communities to access a flight to the major hubs. Most of the regional airlines service to major airports, so they are connected or part of a servicing contract with national airlines, who in turn are part of the operations of the global airline industry. Smaller aircraft and retired aircraft from the national and global airline industry are used for regional flights.
3. Post- 9/11 fear of flying, rising fuel costs, seasonal fluctuations, and increased
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As major airlines go bankrupt, opportunities to take over the flights and collect on that revenue that was going to the majors can be realized for Sky West. It can go global. External threats include rising fuel costs, and limited domestic opportunities.
7. The company’s future is promising. Revenues are increasing and its load factor is improving. Operating expenses are decreasing and compared to other regional airlines, SkyWest offers better benefits and compensation packages. It is performing efficiently; more so as each year passes.
8. SkyWest, Inc. must seek global markets to enter that allow joint ventures and potential for growth to strengthen the company’s competitive position. I would recommend the management stay on top of technological advances in aircraft and purchase fuel efficient jets to lower fuel costs. Also, a plan to consolidate ASA offices with the offices of SkyWest would cut down operating costs.

Dennis Marriott
2. Five Forces Analysis for SkyWest.
Threat of New Entrants. The threat of new entrants is not a strong threat for SkyWest, Inc. because of its control of distribution channels is high (i.e. service contracts with major airlines), its proprietary knowledge is high as the company is an established company with experience in the industry, and capital requirements are high.
Power of Buyers. The power of buyers is relatively

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