Spirit Airlines SWOT Analysis
Spirit Airlines SWOT Analysis
In the External Factors column, list at least six opportunities you saw in the company you researched. Underneath the opportunities, list at least six threats you saw in the company you researched. In the Weight column, assign an importance factor to each of these issues. It is important to note that whenever working with weighted averages, the weight column should always total
1.0, or 100%, regardless of how many factors are included in the EFAS analysis. It is up to the analyst to decide how much weight each individual external factor is assigned based on the probable impact on a particular company’s current strategic position. The higher the weight, the more important the factor to the current and future success of the company. An important factor may have a weight of 0.5 (50%), while a less important factor may have a weight of .05 (5%). When all is finished, however, all factor weights should total 1.0, or 100%.
You may not be privy to the exact information for this company, so in some cases you will need to use your best judgment. (You will justify your weighting in column five.) In the Rating column, assign a rating factor from 5.0-1.0 (5.0 is outstanding; 1.0 is poor). These ratings are based on the company’s response to that particular factor. It is your judgment call on how the company is currently dealing with each specific factor. Once again, you may need to make an estimate in this area if you are not privy to all of the information. (You will justify your weighting in column five.) In the Weighted Score column, multiply the weight from column 2 by the rating in column 3 to get the factor’s weighted score. In the Comments column, explain why a particular factor was selected and how its weight and rating were estimated. At the bottom of column 4, add the weighted scores for the external factors. Is the company doing better or worse than others in the same industry?
Spirit Airlines SWOT Analysis will help the company to know the fields where it has competitive advantage and where it is losing on. In addition, the SWOT analysis will benefit company directors in determining which new packages, offers, routes, or connections it should look out for in order to stay competitive and increase its market share in its domestic market as well as know which new markets/routes it should attempt to penetrate.
For instance, Spirit Airlines’ main strengths are in its low prices, its own niche market, and its relatively young fleet. These are areas that the company should ensure that it continues to lead the market. However, we notice that Spirit Airlines has some weaknesses that can potentially harm its business operations. For instance, its small legroom can be increased in order to increase customer satisfaction and loyalty. Another weakness of Spirit Airlines is its lack of a marketing alliance within the airline industry. This lack of a strategic alliance or partnership denies the company the potential to serve more customers within its domestic market (increase market penetration) as well as prevents the carrier to serve new customers on an international scale (market development).
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