Spirit Airlines: Customer Services Flight or Failure, SWOT Analysis Example

Strengths

In the creation new airline, the Spirit Airlines management s, the company requires to have a comprehensive interpretation of its SWOT analysis. Spirit Airlines has several strengths on which it requires to capitalize in order retain the competitive advantage it enjoys in the market. The company has the advantage of having an already established niche market. Its niche market is composed of the passenger frequenting the hub location throughout the US. By aggressively marketing to their customers, the Spirit Airlines has more control of its market. This gives the company the competitive advantage of being able to manipulate market forces of supply and demand (Williams, 2010). The low fares the company charges, the non stop flies the airline does to major location hubs in the US and their frequent flights to major important destination in the west not forgetting their high quality  customer service still put them ahead of the pack.

Weaknesses

However, the company is also faced with some serious odds. Just like any other business, the company faces several challenges that can be described as its weaknesses. Weaknesses are those attributes that if not checked, may result in the company’s downfall. Spirit Airlines lacks of a detailed plan of action in case of employees unrest in addition to alternatives accommodation for those customers who arrive late (Williams, 2010).  The just concluded waiting lounge is not comfortable as people are not allowed to sleep there. This makes the company’s operations seem so ad-hoc. This may lead to serious problems in that the company may lose its primary focus. There are also hidden fees (i.e.: baggage, customer utilizing special rate fare, however, on the return flight its at the regular rate.

Opportunities

This would be interpreted to mean that the company has an advantageous position to control its market share. This is as a result of its influence over the market since it has access to its customers details, hence it can easily address the customers’ expectations. The company has been deeply involved in direct marketing and even introduced some incentives to the customers makes the surge almost unbearable for the company The company has also been involved in corporate social responsibility adding to the Midas touch with customers in their local setting as they give back to the community as well as in enabling them to access the customer directly and so get a better understanding of the pertinent issues in relation to its products as well as the competition. The company has the advantage of being innovative towards meeting the clientele’s needs. Its ability to serve the customers from the hub locations gives it an added advantage over the compactors. Spirit airline also offers innovative services like online television, the newly constructed waiting lounges as well as additional customer luggage capacity makes the customers love the airline.

Threats

Every market poses various threats and drawbacks. Spirit Airlines is faced with negative publicity that may result from disgruntled customers or from its vulnerability to competitor’s attacks. Negative publicity also comes in the form of the influx of competitors that destabilize the market for spirit airline services. The aspect of seasonality of demand for the company’s products would pose a threat in that the company may make huge losses from overproduction of products in the low season. This may necessitate lying off of huge numbers of its workers and consequently the company may face legal restrictions on unemployment. In times of low sales the company may face the dilemma issue of modalities for retention of key staff members. The global economic slump might have a negative impact on the leisure, air travel as well as business travel. The current rise in the price of fuel destabilize the company business model in additional to threats from terrorist attacks (Myron, 2008).

Recommendations

There are numerous opportunities for growth and improvement available for Spirit Airlines. The company has the opportunity for acquisition of market intelligence, owing to the fact that it has the basic knowledge of the end user sector. This would bring about increased capacity for expansion, high profit margins, also lead to new product development. Since end-users respond to new ideas, the company could improve the collection of primary data on the consumer’s reaction to innovative ideas.

References

Myron, J. S., (2008), The Salem College Guide to Sources on Commercial Aviation: Airliners and Foreign Air Transport. NY Sage

Williams, M. (2010). From Worst to First: Behind the Scenes of Continental’s Remarkable Co Locust Hill Press.