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Environment Analysis
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Environment Analysis
Spirit Airlines
Spirit Airlines is a highly low cost carrier. It gives the clients many options of customizing their base tickets amounts. The company has agent print-outs known as the boarding pass. The boarding pass is used to check the input versus the doing in the online kiosk. The system checks bags and progressively increases charges for overweight bags. By 2007, the Spirit started charging an amount of $3 for drinks. The charges increased to $5 in 2011 for passengers boarding passes printed at the check-in. According to these company, any bags that can exactly fit under the seats, are not charged. Any big bags that cause the overwhelming condition to the operators are the ones that are charged. The company ensures that the luggage does not exceed 50 pounds, and the bags are loaded up to $25. The company started in the US as a carrier to temporary to increase the passenger baggage fees (Eden, 1996). In the states, the bag fees began with a minimal fee of $2 to attract fewer bags to the airline during traveling. The aim of the company in discouraging passengers from carrying huge bags have resulted in another open business.
The company attains a higher competitive advantage over the higher-cost carriers. Its low prices in the market make it maintain its customers. Unlike some other companies such as the Delta Airline, US Airways and many other means of transport enterprises in the US, the stripe line has the least charges thus making many people prefer to use it. The company is also winning the competitive ability by ensuring that its bankruptcy is protected. The company was recorded to be among the businesses in the US airlines that protected its bankruptcy. By so doing, it established a strong foundation in the market as compared to the other airline which was declared bankrupt in the year 2012
The attractiveness of the Airstrip industry makes customers like it. The leisure travels cost which depends on the service provided by the airstrip increases when the service given by the airline industry are active. The most significant factor that makes the airstrip gain more customers is its effectiveness.
Another external business factors that affect the runway industry is the fuel volatility. A company like a strip airline take proper steps when trying to regulate the fuel prices. The fuel prices can affect the company to extend of deciding to quit the market. For a company to be comfortable in the market, it should be prepared for anything in the fuel market and once the fuel prices Hicks, the company should have its compensation scheme.
Competition
Competition is one of the core external threat that any company can experience. Competition and displacement of business from its niche results from factors such as quality of services provided by a corporation, the level reputation in the market and the company’s strategies for regulating competition. The airstrip company has minimized the competition from the external and new businesses entering the market by ensuring that the services that provide are of exceptional quality. The company is also consistent in the market. Unlike other enterprises that were declared bankruptcy in 2011, airstrip has a technique of protecting its bankruptcy states.
The bargaining of the buyers
Companies that provides the customers a higher bargaining power are likely to experience more sell and more customers. Here, the customer can choose what type of airline to use. In the airstrip industry, the most customers tend to shift from other service providers to the runway production due to a relatively small burgeoning power. The bargaining power should touch all spheres that affect the entire field of airfield transport. It should also change the suppliers such as the fuel providers (Kaplan, & Norton, 2001). If all stack-holders are given opt unities to express their feeling about the prices of the products they are supplying or selling, they will feel comfortable to work with the company in question and thus good customer-seller relation thus an expansion in the business niche.
EFE Analysis
From the external factors analysis and the respective rating, the IFE and EFE matrices quantitatively show that code sharing, implementation of new route are among the techniques that promote the company’s market acquisition. According to QSPM, strategies are presented regarding total relative attractiveness. For a company to shine in terms strengths, opportunity grip and ability to detect threads, code sharing is the most advantageous and useful technique to use. The cost of code sharing includes sharing, and consolidation of the airstrip resources, the maintained cost, flier program cost, and internal adjustment (Lawrence, & Lorsch, 1986). Research indicates that the least mode of operation is by the little code business model. The strip airline has reduced its operational cost thus, making it easy for capital financing.
Internal business environment
The airstrip industry started in 1919 in Hounslow Heath Aerodrome in England. It was among the very first airstrips that operated for international commercial services. During its development, the industry experienced a great deal of issues which included engine break down, regular refuel after the plane has flown for short distances. The problem was later solved by the implementation of the aircraft that would fly over long distance without any need of refueling. Such planes were introduced in the 1960s. The purpose of the air transport that was invented was meant to assist in military work A fact that changed over time and the plane started carrying people and finally become a means of transportation.
Corporate Level Strategy
Corporate level strategy refers strategic decision made by a business that once affected would cause a great impact on the entire organization. They have a bearing on the following sectors of an organization. The financial department, the administration office, the human resource department. The above decision makes the whole body be paralyzed if wrong was done.
Business Unit Level Strategy
Business level strategies refer to a detailed action taken to provide a value of a customer and the way the company treats each and every client. The company should ensure that there exist an everlasting relationship between the client and the business itself.
Functional Level Strategy
Refers to careful selecting rules that will be followed in the process of decision making. Any effective decision-making strategy should identify all field for its effect to be felt. The functional level of strategic management touches the marketing department, financial plan and many other.
For a business to be successful, both internal and external environment should be scanned. The scanning provides relevant information which is used to analysis and give out the most outstanding way to handle any effects that may negatively affect the business (Post, J. E., Frederick, W. C., Lawrence, A. T., & Weber, 1996). Scanning of the environment and analyzing of the situation results in the positive gain of an organization if the results of the scan are but into relevant practice.
References
Post, J. E., Frederick, W. C., Lawrence, A. T., & Weber, J. (1996). Business and Society: Corporate strategy, public policy, ethics.
Lawrence, P. R., & Lorsch, J. W. (1986). Organization and environment: managing differentiation and integration (Harvard Business School Classics).
Eden, S. E. (1994). Using sustainable development: The business case. Global Environmental Change, 4(2), 160-167.
White, G. W. (2001). Business ethics. Journal of Business & Finance Librarianship, 6(4), 49-49.
Kaplan, R. S., & Norton, D. P. (2001). The strategy-focused organization: How balanced scorecard companies thrive in the new business environment. Harvard Business Press.
