Alaska Airlines is a leading American airline company. The aviation brand started its airline business in 1944 after the rebranding of McGee Airways. Today, we’ll discuss the SWOT analysis of Alaska Airlines; it outlines strengths and weaknesses; opportunities, and threats that the company has to face; as a business strategy analysis example company.
Products and services portfolio of Alaska Airlines
- Reward programs
- Air travel service
- Meal and beverages in-flight
- Cabins premium, first class, and main cabin
- In-flight internet service
Focused cities of Alaska Airlines
- San Jose
- San Diego
- Boise
Parent Company of Alaska Airlines
- Alaska Air Group
Statistics about Alaska Airlines
- Employees – 22918
- Fleet sizes – 314 aircraft
- Destinations – 128
Competitors of Alaska Airlines
- WestJet Airlines
- Southwest Airlines
- American Airlines
- JetBlue Airways
- United Airlines
- Delta Airlines
- Spirit Airlines
- Skywest
- Allegiant Travel
The SWOT analysis of Alaska Airlines would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Alaska Airlines SWOT analysis as a business strategy analysis example company as follows;
Strengths of Alaska Airlines
Some of the main internal strengths in the Alaska Airlines SWOT analysis example company as business strategy analysis are as follows;
Large Fleet Size
Alaska Airlines has established a very large fleet size comprising 314 aircraft; it allows the company to serve a wide range of air travelers. The geography of Alaska plays a key role in air travel because the alternative routes take a lot of time and resources. However, the large fleet size helps the company to meet the high demand capacity and offers 128 destinations across the US, Canada, and Mexico.
Recognized Brand
Alaska Airlines has established a recognized brand image by offering excellent customers, safe air travel, and reliability. The airline brand has been serving customers for decades; the experience and long legacy have allowed the company to earn the trust and confidence of customers.
Satisfied Customers
Alaska Airlines has won various awards and honors for satisfying the traveling needs and demands of customers. For instance, JD Power Association chose Alaska Airlines as a highly customer satisfaction brand among other North American Airlines for 5 years.
Operational Efficiency
Alaska Airlines has earned the reputation of a highly operationally efficient airline brand in the aviation industry. It is in the form of luggage handling, on-time landing and take-off, and employing the latest technological tools to achieve efficiency. As a result, it helps the airline company to improve its customer satisfaction level.
Mileage Plan
In order to promote brand loyalty, Alaska Airlines offers rewards by the name of “Mileage Plan.” The customers would earn points and miles every time they travel with Alaska Airlines. However, the loyalty programs offer various types of benefits to the customers; discounts, easy access, and free tickets.
Weaknesses of Alaska Airlines
Some of the main internal weaknesses in the Alaska Airlines SWOT analysis example company as business strategy analysis are as follows;
Over-reliance on the North American Market
Alaska Airlines heavily relies on the West Coast and North American Markets as its major sources of revenue stream and customers. High reliance on one market for sales and revenue would be highly risky for the company in case of an economic recession phase or any other type of lockdown crisis.
Controversy
Alaska Airlines and its parent company had a very conflicted relationship with its labor union and workforce over the employees’ benefits and compensation plans. It is negatively impacting the employees’ morale and confidence level of employees.
Opportunities for Alaska Airlines
Some of the main available opportunities in the Alaska Airlines SWOT analysis example company as business strategy analysis are as follows;
Market Expansion
Alaska Airlines should expand its aviation market and enter the Middle Eastern, Asian, African, and European markets. These emerging markets hold great growth potential, and it would help the company to amplify its customer market share.
Tech Development
Alaska Airlines should capital resources on the latest technological developments; like online booking, digital media on-flight, and others. It allows the company to improve operational efficiency, reduce wastage of resources, and improve the overall customer air traveling experience.
Strategic Alliance & Partnerships
Alaska Airlines should develop strategic alliances and partnerships with other airlines and aviation companies. It allows the company to increase its market share by entering new regions and targeting new segments of the customer market.
Threats to Alaska Airlines
Some of the main potential threats in the Alaska Airlines SWOT analysis example company as business strategy analysis are as follows;
Competition
The aviation industry has become highly competitive over the years with various airlines operating their business and offering similar types of service. The competitive environment has made it difficult for Alaska Airlines to maintain its market position and market share.
High Fuel Cost
The international political conflicts have increased oil prices significantly. Alaska Airlines requires a mass volume of oil for conducting its operations and keeping the aircraft’s engine running. Ultimately, it increases the operational cost and fair price.
Safety Regulations
Governments and countries have set up strict safety regulations for the airlines and aviation companies. Alaska Airlines should comply with the country’s laws to avoid any type of lawsuits and penalty charges.
Conclusion: Alaska Airlines SWOT Analysis Example Company |SWOT Analysis of Alaska Airlines |Business Strategy Analysis
After an in-depth study of the SWOT analysis of Alaska Airlines; we have realized that Alaska Airlines is the world’s leading aviation brand. If you are learning about Alaska Airlines SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
