Essay about Spirit case analysis

Submitted By leiry12
Words: 3215
Pages: 13

Spirit Case Analysis
Prepared by:
Leiry Guevara
10/12/2013

Spirit Case Analysis Spirit Airlines began as a Detroit trucking company which was transformed to a charter airline in 1983 (Martin, 2013). The charter airline flied travelers/tourists to Las Vegas, Atlantic City and the Bahamas (Martin, 2013). It was not until the year 2006 when the airline decided to initiate the ultra low fare business model (Martin, 2013). Spirit Airline has just 49 planes but is working on adding more by the end of this year (Mouawad, 2013). The airline is runned by the CEO, Ben Baldanza, who is 51 years old and a veteran (Mouawad, 2013).
Situational Analysis The situational analysis will help the reader understand Spirits Airline's external and internal strengths and weakness to find ways in which the company can be improved. Consequently, leading to provide a quality customer service experience and achieve more revenues for the company.
External Environmental Analysis (Outside of the organization) Spirit Airlines is doing great in offering the lowest possible prices on the airline industry; however the company need to take into consideration the economic, social, political, technological, and natural areas of each of the other airlines that are the competition.
Economic
Other companies are fighting to attract new customers in the though economy that it's currently going on. Airlines are struggling because customers want low prices and good customer services (Mouawad, 2013). During February 2013, other airlines industries have reported only an 81 percent of their airplanes to be full; unlike Spirit Airlines that had an 85.1 percent of their planes full (Bachman, 2013). Airlines like Delta and Southwest are some of the airlines that are constantly been classified with the lowest ranks in customer service; even though these airlines work very hard to provide customers with low prices (Bachman, 2013). The airline industries are constantly struggling to stay on the market with low prices, attracting new customer's attention and their understanding of the company business plan. For instance, Southwest airline used to be the cheapest flying airline until Spirit airline came with the extra lowest prices (Mouawad, 2013). Air travel fees make it more difficult to compare between each of the airlines companies (Mouawad, 2013).
Social
In the external social department there are more companies providing quality customer service and higher prices. Airlines like American airlines are charging more for a flight ticket but it includes a quality customer service experience and relaxed flight ( Mouawad, 2013). American airlines ticket prices include luggage and carrions ECT. Other expensive airlines provide comfortable adjustable seats, business/first class, and even television (Martin, 2013). Unlike, Spirit who focuses in offering a low price ticket for persons or families that save all year long for trips or vacations (Martin, 2013).
Political
The political stage for external companies is that other airlines are flying less time with fewer passengers but they are delivering people to their destination on time (Mouawad, 2013). Because of that reason these other companies like Southwest and American airlines are charging more for their flight tickets (Mouawad, 2013). Another political advantage that other airlines use is that they care about their customers service; they want the customers to have a relax flight, providing them with adjustable seats, blankets, television, wifi etc (Martin, 2013). Expensive airlines know that they are marketing to individuals who are willing to pay the necessary money to have comfortable trip to their destination (Martin, 2013).
Technological
Technologically, other airlines like American Airlines are more advanced than Spirit, because they offer wifi, TV, movies, and modern adjustable seats (Mouawad, 2013). Other airlines are using technology to attract…