Question

Create a BCG matrix for Southwest Airlines. Include competitors, JetBlue and United.

Create a BCG matrix for Southwest Airlines. Include competitors, JetBlue and United.

Homework Answers

Answer #1

To draw BCG matrix, let's first do the SWOT analysis of Southwest airlines:

Strengths - One of the best low cost carriers. Strong Brand. Years of profitability resulting in abundance of cash. High domestic market share. Lowest turnaround time

Weaknesses - Negligible international presence. No premium class services, thus losing out on such customers. High fixed costs due to permanent employees.

Opportunities - Can expand in international markets easily because of sustained cashflows.

Threats - Other low cost carriers. Government regulations and fuel costs.

Southwest Airlines market share is approximately 21% and its growth rate is about 5-7%, which is close to industry growth rate itself. This leaves Southwest Airlines in the Cash Cow category because of high market share but average growth rate.

United Airlines is also in the Cash Cow segment because of growth rate of 3.5% (lower than normal) and substantially high 15% market share.

Jetblue is a question mark with high growth rate of ~7.5% and low market share of only 4%.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Develop a BCG matrix for Delta Airlines
Develop a BCG matrix for Delta Airlines
. Suppose you have been asked to write a report for Southwest Airlines discussing and displaying...
. Suppose you have been asked to write a report for Southwest Airlines discussing and displaying their share of the U.S. airline market. In your research, you are able to obtain from the Bureau of Transportation Statistics the following information on the Number of Passengers Carried in a recent year for the top seven U.S. airlines: Southwest Airlines — 111,498,509 Delta Air Lines — 109,827,685 United Air Lines — 82,436,921 American Airlines — 80,113,333 US Airways — 52,955,303 ExpressJet Airlines...
Analyze net change in financial activities for Southwest airlines. Include discussion of whether the company obtained...
Analyze net change in financial activities for Southwest airlines. Include discussion of whether the company obtained new debt or equity financing over the last 3 years, how the company’s debt and equity changed, and whether the company paid down debt or equity in the last 3 years. Explain the pros and cons of having a large cash balance.
Create and include a risk matrix for HEINEKEN. identify a minimum of 10 unique risks associated...
Create and include a risk matrix for HEINEKEN. identify a minimum of 10 unique risks associated value enhance strategies. Based upon your Risk Matrix, choose two or three of the most critical risks assessed and discuss their potential impacts on your selected Strategic alternative
Jeremy is a 45-year-old pilot who works for United Airlines. Jeremy hopes to retire in 20...
Jeremy is a 45-year-old pilot who works for United Airlines. Jeremy hopes to retire in 20 years and uses his savings to purchase a stock portfolio to fund his retirement. Would you recommend that Jeremy’s retirement portfolio include an above-average, average, or below- average weighting in airlines stocks? Why?
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
Rob’s Market (RM) is a regional food store chain in the southwest United States. David White,...
Rob’s Market (RM) is a regional food store chain in the southwest United States. David White, Director of Business Intelligence for RM, would like to initiate a study of the purchase behavior of customers who use the RM loyalty card (a card that customers scan at checkout to qualify for discounted prices). The use of the loyalty card allows RM to capture what is known as “point-of-sale” data, that is, a list of products purchased by customers as they check...
UPS COMPETES GLOBALLY WITH INFORMATION TECHNOLOGY United Parcel Service (UPS) started out in 1907 in a...
UPS COMPETES GLOBALLY WITH INFORMATION TECHNOLOGY United Parcel Service (UPS) started out in 1907 in a closet-sized basement office. Jim Casey and Claude Ryan—two teenagers from Seattle with two bicycles and one phone—promised the “best service and lowest rates.” UPS has used this formula successfully for more than a century to become the world’s largest ground and air package-delivery company. It’s a global enterprise with nearly 400,000 employees, 96,000 vehicles, and the world’s ninth largest airline. Today UPS delivers 16.3...