Swot Analysis for Puddle Jumpers Airlines, Inc

SWOT Analysis for Puddle Jumpers Airlines, Inc.

Christy Bosley

Axia College of University of Phoenix

Foundations of Business/BUS210

Angie Muller

April 13, 2008

SWOT Analysis for Puddle Jumpers Airlines, Inc.

The management of Puddle Jumpers has familiarity with the airline business coupled with an intense business model. The goal of Puddle Jumpers is to provide service at a reasonable cost to business travelers. Puddle Jumpers understand the concerns and stress for passenger travel on chosen routes. It is very clear that Puddle Jumpers has conducted enough research into being a new carrier in the Anytown hub due to the demands of travel. By aligning safety, lower fares and well maintained aircrafts with excellent customer service, Puddle Jumpers will thrive in the airline industries. The founder of this corporation, Kenneth D. Smith is highly skilled in consumer aviation and with his team members; Puddle Jumpers is making a highly valuable business move. The management team of Puddle Jumpers combines highly skilled workers, each with valued ideas and a background in the airline or travel field. The capital in reserve is enough to allow Puddle Jumpers to sell and market their product to travelers for several years.

Since Puddle Jumpers is fairly new to the airline market, it stands to reason that some weaknesses may appear. The largest hurdle that Puddle Jumpers will face is US Air since they account for 86% of air travel in the market (Business Plan Pro, 2008). Because consumer surveys indicate that customers are looking for lower fares but they will not compromise on safety or arrival times, they will however settle for airlines that do not have the perks of others. Puddle Jumpers has entered into a market that will allow them to flourish as long as they continue to offer the services the customer are searching for. Since many airlines offer meal service and first class seating, this is one of the reasons for higher ticket prices. Puddle Jumpers will make the most of the consumer’s dollar by flying MD-80 coach aircrafts and no meal service. The reservation system that will be used will be an effective money saving tool as Puddle Jumpers can employ fewer reservationists and save time and money by not having to cross train their employees. Because Puddle Jumpers will not employ many reservationists, this could pose an issue with customers who want to speak to a live person. Although the system that will be used by Puddle Jumpers 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.

Because Puddle Jumpers has studied other airlines such as ValuJet, they will offer the consumer a wide array of travel destinations and by using the targeted markets they will increase their sales. The products offered by Puddle Jumpers can be widened to target other markets and possibly challenge