Airline Industry and the World Trade Center Disaster SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Airline Industry and the World Trade Center Disaster
On the morning of September 11, 2001, four U.S. passenger planes were hijacked during transcontinental domestic flights. Two of them were crashed into the twin towers of New York's World Trade Center, leading to the collapse of both skyscrapers. Another one hit the Pentagon, the headquarters of the U.S. Department of Defense near Washington, D.C. The fourth hijacked plane crashed in western Pennsylvania after passengers attempted to take control back from the hijackers. The death toll from the unprecedented attacks was estimated at around 3,000. In addition to the human, political, and military impacts, the events of September 11 also would have far-reaching economic impacts. One of the industries most affected was the airline industry, which was already suffering before the attacks. Some airlines closed, some saw massive layoffs, and all were faced with substantially lower profits or higher losses. As the year 2002 began, managers throughout the airline industry wondered which effects would be permanent and which would be transitory. They also wondered how they and their airlines should deal with the fallout from the attacks and the other forces that already had been reshaping the airline industry. The case gives an overview of the global airline industry before September 11, showing it was a tough industry with not a great deal of profits even before the disaster. It then highlights the impact of the events of September 11 on the airline industry.
Swot Analysis of "Airline Industry and the World Trade Center Disaster" written by Michael J. Enright, Vincent Mak includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Airline 11 facing as an external strategic factors. Some of the topics covered in Airline Industry and the World Trade Center Disaster case study are - Strategic Management Strategies, Risk management, Social responsibility, Strategic planning and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Airline Industry and the World Trade Center Disaster casestudy better are - – increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, increasing energy prices, technology disruption, supply chains are disrupted by pandemic , there is increasing trade war between United States & China,
there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Airline Industry and the World Trade Center Disaster
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Airline Industry and the World Trade Center Disaster case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Airline 11, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Airline 11 operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Airline Industry and the World Trade Center Disaster can be done for the following purposes –
1. Strategic planning using facts provided in Airline Industry and the World Trade Center Disaster case study
2. Improving business portfolio management of Airline 11
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Airline 11
Strengths Airline Industry and the World Trade Center Disaster | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Airline 11 in Airline Industry and the World Trade Center Disaster Harvard Business Review case study are -
Diverse revenue streams
– Airline 11 is present in almost all the verticals within the industry. This has provided firm in Airline Industry and the World Trade Center Disaster case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Ability to lead change in Strategy & Execution field
– Airline 11 is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Airline 11 in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Airline 11 is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Michael J. Enright, Vincent Mak can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Organizational Resilience of Airline 11
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Airline 11 does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Airline 11 has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Strong track record of project management
– Airline 11 is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Airline 11 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Airline 11 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Airline 11 is one of the most innovative firm in sector. Manager in Airline Industry and the World Trade Center Disaster Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Airline 11 is one of the leading recruiters in the industry. Managers in the Airline Industry and the World Trade Center Disaster are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Airline 11 in the sector have low bargaining power. Airline Industry and the World Trade Center Disaster has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Airline 11 to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Airline 11 has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Airline Industry and the World Trade Center Disaster - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Airline 11 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Airline Industry and the World Trade Center Disaster Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Weaknesses Airline Industry and the World Trade Center Disaster | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Airline Industry and the World Trade Center Disaster are -
Skills based hiring
– The stress on hiring functional specialists at Airline 11 has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Airline 11 has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Products dominated business model
– Even though Airline 11 has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Airline Industry and the World Trade Center Disaster should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Airline Industry and the World Trade Center Disaster, is just above the industry average. Airline 11 needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High operating costs
– Compare to the competitors, firm in the HBR case study Airline Industry and the World Trade Center Disaster has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Airline 11 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Airline 11 is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Airline 11 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Airline 11 to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Airline Industry and the World Trade Center Disaster, in the dynamic environment Airline 11 has struggled to respond to the nimble upstart competition. Airline 11 has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Airline 11 is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Airline Industry and the World Trade Center Disaster can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Airline Industry and the World Trade Center Disaster that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Airline Industry and the World Trade Center Disaster can leverage the sales team experience to cultivate customer relationships as Airline 11 is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Michael J. Enright, Vincent Mak suggests that, Airline 11 is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Slow decision making process
– As mentioned earlier in the report, Airline 11 has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Airline 11 even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Opportunities Airline Industry and the World Trade Center Disaster | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Airline Industry and the World Trade Center Disaster are -
Using analytics as competitive advantage
– Airline 11 has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Airline Industry and the World Trade Center Disaster - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Airline 11 to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Airline 11 in the consumer business. Now Airline 11 can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Airline 11 can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Airline Industry and the World Trade Center Disaster suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Airline 11 can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Airline 11 is facing challenges because of the dominance of functional experts in the organization. Airline Industry and the World Trade Center Disaster case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Building a culture of innovation
– managers at Airline 11 can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Airline 11 can use these opportunities to build new business models that can help the communities that Airline 11 operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Creating value in data economy
– The success of analytics program of Airline 11 has opened avenues for new revenue streams for the organization in the industry. This can help Airline 11 to build a more holistic ecosystem as suggested in the Airline Industry and the World Trade Center Disaster case study. Airline 11 can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Airline 11 in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Airline 11 to increase its market reach. Airline 11 will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Learning at scale
– Online learning technologies has now opened space for Airline 11 to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Airline 11 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Airline 11 to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Airline 11 to hire the very best people irrespective of their geographical location.
Threats Airline Industry and the World Trade Center Disaster External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Airline Industry and the World Trade Center Disaster are -
Environmental challenges
– Airline 11 needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Airline 11 can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Airline 11 business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Airline 11 is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Airline Industry and the World Trade Center Disaster, Airline 11 may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Airline 11 with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Airline 11 can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
High dependence on third party suppliers
– Airline 11 high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Increasing wage structure of Airline 11
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Airline 11.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Airline 11 will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Airline 11 needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Regulatory challenges
– Airline 11 needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Airline 11.
Weighted SWOT Analysis of Airline Industry and the World Trade Center Disaster Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Airline Industry and the World Trade Center Disaster needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Airline Industry and the World Trade Center Disaster is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Airline Industry and the World Trade Center Disaster is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Airline Industry and the World Trade Center Disaster is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Airline 11 needs to make to build a sustainable competitive advantage.
