Swot Analysis - Axia College

SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the development of marketing plans. It accomplishes this by assessing an organizations strengths (what an organization can do) and weaknesses (what an organization cannot do) in addition to opportunities (potential favorable conditions for an organization) and threats (potential unfavorable conditions for an organization). SWOT analysis is an important step in planning and its value is often underestimated despite the simplicity in creation. The role of SWOT analysis is to take information and separate it into internal issues (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines what aspects will assist the company in accomplishing its objectives (a strength or opportunity), and indicate any obstacles that must be overcome or minimized to achieve desired results (weakness or threat).

The business plan that I have selected and analyzed using the SWOT analysis is that of Puddle Jumpers Airlines, Inc. (PJA). The management of PJA has familiarity with the airline business coupled with an effective business model. The goal of PJA is to provide service at a reasonable cost to business travelers; PJA understand the concerns and stress for passenger travel on chosen routes. It is very clear that PJA has conducted enough research into being a new carrier in the Anytown hub due to the demands of travel. With a goal of aligning safety, lower fares and well maintained aircrafts with excellent customer service, PJA has created an outline for an effective business model. The founder of this corporation, Kenneth D. Smith, is highly skilled in consumer aviation. Along with his team members, PJA is making a highly valuable business move. The management team of PJA combines highly skilled workers, each

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with valued ideas and a background in the airline or travel field. The capital in reserve is enough to allow PJA to sell and market their product to travelers for several years. With these strengths in place, PJA has an opportunity for great success in the marketplace.

Because PJA is new to the airline market, it stands to reason that some weaknesses may appear. The largest hurdle that PJA will face is US Air due to the fact that they account for 86% of air travel in the market (Business Plan Pro, 2008). Consumer surveys indicate that customers are looking for lower fares but they will not compromise on safety or arrival times, therefore they will settle for airlines that do not have the perks of others. PJA has entered into a market that will allow the company to flourish as long as they continue to offer the services the customers are searching for. Many airlines offer meal service and first class seating; this is one of the reasons for higher ticket prices. PJA will make the most of the consumer’s dollar by flying MD-80 coach aircraft and no meal service. The reservation system that will be used will be an effective money saving tool as PJA can staff fewer employees and save time and money by not having to cross train their employees. However, because PJA will use an automated reservation system, this could pose an issue with customers who want to speak to a live person. Because the system that will be used by PJA seems to be more effective than those in the past, some consumers may overlook speaking to a live person if the ticket price is within their budget. PJA has studied other airlines such as ValuJet,