Porter Airline: SWOT and Environment Analysis

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Table of Contents

Executive summary
Environmental Analysis
Bibliography

Executive summary

This report presents the SWOT and environment analysis of Porter Airlines. Porter airline is a big name in the aviation industry of the United States. It is one of the most profitable airlines in the United States, and ranks number one in terms of passengers carried domestically each year. It is considered as a low-fare airline. Over the years due to the amazing leadership and management of the Porter Airlines, the company has been one of the most profitable organizations in United States. The broader vision of the management helped the airline take decisions which resulted in a profit for the airlines. Although, Porter airlines do not operate internationally, but its success rate indicates that Porter airlines has the potential to become successful and rank among the world’s most profitable international airlines with the help of its dynamic organizational culture and teamwork. Porter airlines have a dynamic organizational culture, which is always a positive sign for any business organization.

This report also explains the most notable drawbacks that have befallen the airline since the start and in recent times that have also forced the firm to join partnerships through Membership Alliances, innovations, and subsidiaries. Indeed there are the air line’s weaknesses which have in one way played a role in low customer turn out and low profit realization from non lucrative destinations. Ultimately in this report there are some recommendations to help the airline improve its performance and eventually stay ahead of rivalry in this competitive world of business.

Porter’s mission statement is to take care of their customers. They accomplish this through being the safest, highest in quality, and lowest cost flight services. They are dedicated to doing this at the same time as being cultural and environmental stewards in the communities where they live and work.

Environmental Analysis

Marketing Analysis

Porter’s airline exceptional growth has been determined to its well known brand which has been created by using different marketing strategies, targeting all age groups and serving all communities with its products and services.

Product – the offer both cargo and passenger service.
Price – low-cost service or Competitive reduced the price of its passenger air service.
Promotion – Promoting through media e.g. TV channels, Newspapers and Online.
Place – Multi-National, World Wide Web-Based in America. Currently, the porter’s has a very large share of both the domestic and international market. In the domestic market, the airline has destinations and booking points at various locations in the country.
Parity –High market share and growing due to diversification in their products.
People – Talented staff and high skilled and experienced management.

Porter’s airline extensive success is due to marketing techniques such as price skimming, penetration pricing and offering multiple products at one price, and mostly promoting in the media. Their success depends on appealing their products to a diverse range of users.

Human Resource Management Analysis

The success of Porter’s airline is due to intelligent, talented and highly qualified staff and management teams. It’s also building new brands that has attracted the brightest and effective new employees, and retaining old staff by offering shares, promotion and bonus options.

The competition in the market was intense due to the presence of strong rivals such as Atlantic airline, southwest airline, and many others. At the same time, the environmental activists were demanding greater governmental regulation on the industry.

The management realized that to remain a leader in the business it is essential to achieve better shareholder returns from the market. For fulfilling this objective, they strongly felt that strong financial controls and reliable operations are required. For achieving these objectives the quality, dedication, and professionalism of all the employees are required to be maintained and improved.

Operational analysis

In Porter’s airlines, the management and the leadership of the company played a major role in developing the champion culture that the organization possesses today. A good attribute of a leader is that he thinks about the future and thinks differently. CEO did the same and he offered the customers low fares by eliminating unnecessary services and avoiding the “hub-and-spoke” scheduling system used by other airlines in favor of building traffic in secondary airports. All these measures along with the great in-flight service and happy atmosphere attracted millions of customers that have preferred Porter’s over the competitors until today. Currently, porters airlines fly across destinations in the United States and Canada.

Financial Analysis

Porter’s airline financial information:

ROCE have fluctuated between 2005 to 2007 shows unstable returns to shareholders and reduces lenders confidence.
Operating margin has gone up by 2% from 8% in 2005.

Bibliography

Elder, A. 2005. Straying from the Flock: Travels in New Zealand. New York: John Wiley & Sons.

Grant, R. M. (1991). Contemporary Strategy Analysis: Concepts, Techniques, Application. Cambridge, MA: Basil Blackwell.

Johnson G, Scholes K and Whittington R, (2006); Exploring Corporate Strategy, 2006,Prentiance Hall, 7 th Enhanced Media Edition,

Morrish, S. 2007. ‘Air New Zealand: Challenges and Opportunities in Hill et al. Strategic Management: An Integrated Approach, 2nd Australasian ed. Wiley: Milton.

Rusheed H.S. (2006), Turnaround strategies for declining small business: the effects of Performance and resources: Cameron School of business, University of North Carolina Wilmington.

Williamson, D., Cooke, P., Jenkins, W. & Moreton, K. 2003. Strategic Management and Business Analysis. New York: Butterworth-Heinemann.

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