Northwest Airlines and the Detroit Snowstorm (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Northwest Airlines and the Detroit Snowstorm (A)
This case is accompanied by a Video Short that can be shown in class or included in a digital coursepack. Instructors should consider the timing of making the video available to students, as it may reveal key case details.Northwest Airlines forced hundreds of passengers to wait up to 8 1/2 hours on aircraft after reaching their destination in an unusually horrible service disaster. The case explores what occurred, why it occurred, and the feelings of those involved.
Swot Analysis of "Northwest Airlines and the Detroit Snowstorm (A)" written by Roger Hallowell includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Occurred Details.northwest facing as an external strategic factors. Some of the topics covered in Northwest Airlines and the Detroit Snowstorm (A) case study are - Strategic Management Strategies, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Northwest Airlines and the Detroit Snowstorm (A) casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, geopolitical disruptions, technology disruption, increasing energy prices, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%,
digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Northwest Airlines and the Detroit Snowstorm (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Northwest Airlines and the Detroit Snowstorm (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Occurred Details.northwest, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Occurred Details.northwest 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 Northwest Airlines and the Detroit Snowstorm (A) can be done for the following purposes –
1. Strategic planning using facts provided in Northwest Airlines and the Detroit Snowstorm (A) case study
2. Improving business portfolio management of Occurred Details.northwest
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Occurred Details.northwest
Strengths Northwest Airlines and the Detroit Snowstorm (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Occurred Details.northwest in Northwest Airlines and the Detroit Snowstorm (A) Harvard Business Review case study are -
Strong track record of project management
– Occurred Details.northwest is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the Northwest Airlines and the Detroit Snowstorm (A) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
High switching costs
– The high switching costs that Occurred Details.northwest 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.
Analytics focus
– Occurred Details.northwest 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 Roger Hallowell 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Occurred Details.northwest digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Occurred Details.northwest has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
High brand equity
– Occurred Details.northwest has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Occurred Details.northwest to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Occurred Details.northwest has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Northwest Airlines and the Detroit Snowstorm (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Technology & Operations industry
– Northwest Airlines and the Detroit Snowstorm (A) firm has clearly differentiated products in the market place. This has enabled Occurred Details.northwest to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Occurred Details.northwest to invest into research and development (R&D) and innovation.
Organizational Resilience of Occurred Details.northwest
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Occurred Details.northwest does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Occurred Details.northwest in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Occurred Details.northwest is one of the most innovative firm in sector. Manager in Northwest Airlines and the Detroit Snowstorm (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Occurred Details.northwest is present in almost all the verticals within the industry. This has provided firm in Northwest Airlines and the Detroit Snowstorm (A) 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.
Weaknesses Northwest Airlines and the Detroit Snowstorm (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Northwest Airlines and the Detroit Snowstorm (A) are -
High operating costs
– Compare to the competitors, firm in the HBR case study Northwest Airlines and the Detroit Snowstorm (A) 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 Occurred Details.northwest 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Occurred Details.northwest needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Occurred Details.northwest is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Northwest Airlines and the Detroit Snowstorm (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Occurred Details.northwest 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 - Northwest Airlines and the Detroit Snowstorm (A) should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Northwest Airlines and the Detroit Snowstorm (A), it seems that the employees of Occurred Details.northwest don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Capital Spending Reduction
– Even during the low interest decade, Occurred Details.northwest 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.
High cash cycle compare to competitors
Occurred Details.northwest has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Aligning sales with marketing
– It come across in the case study Northwest Airlines and the Detroit Snowstorm (A) 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 Northwest Airlines and the Detroit Snowstorm (A) can leverage the sales team experience to cultivate customer relationships as Occurred Details.northwest is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Northwest Airlines and the Detroit Snowstorm (A), is just above the industry average. Occurred Details.northwest 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 bargaining power of channel partners
– Because of the regulatory requirements, Roger Hallowell suggests that, Occurred Details.northwest 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.
Low market penetration in new markets
– Outside its home market of Occurred Details.northwest, firm in the HBR case study Northwest Airlines and the Detroit Snowstorm (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Northwest Airlines and the Detroit Snowstorm (A) | 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 Northwest Airlines and the Detroit Snowstorm (A) are -
Better consumer reach
– The expansion of the 5G network will help Occurred Details.northwest to increase its market reach. Occurred Details.northwest 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.
Buying journey improvements
– Occurred Details.northwest can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Northwest Airlines and the Detroit Snowstorm (A) 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.
Loyalty marketing
– Occurred Details.northwest has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Occurred Details.northwest can use these opportunities to build new business models that can help the communities that Occurred Details.northwest operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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 Occurred Details.northwest in the consumer business. Now Occurred Details.northwest can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Occurred Details.northwest 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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Occurred Details.northwest can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Occurred Details.northwest can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Occurred Details.northwest 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 Occurred Details.northwest to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Occurred Details.northwest 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 Technology & Operations segment.
Using analytics as competitive advantage
– Occurred Details.northwest 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 Northwest Airlines and the Detroit Snowstorm (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Occurred Details.northwest to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Occurred Details.northwest has opened avenues for new revenue streams for the organization in the industry. This can help Occurred Details.northwest to build a more holistic ecosystem as suggested in the Northwest Airlines and the Detroit Snowstorm (A) case study. Occurred Details.northwest 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 Occurred Details.northwest in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Threats Northwest Airlines and the Detroit Snowstorm (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Northwest Airlines and the Detroit Snowstorm (A) are -
Increasing wage structure of Occurred Details.northwest
– 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 Occurred Details.northwest.
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 Occurred Details.northwest business can come under increasing regulations regarding data privacy, data security, etc.
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. Occurred Details.northwest needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Occurred Details.northwest can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Occurred Details.northwest is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Occurred Details.northwest in the Technology & Operations sector and impact the bottomline of the organization.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Consumer confidence and its impact on Occurred Details.northwest demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Stagnating economy with rate increase
– Occurred Details.northwest 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.
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 Occurred Details.northwest.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Occurred Details.northwest can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Northwest Airlines and the Detroit Snowstorm (A) .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Northwest Airlines and the Detroit Snowstorm (A), Occurred Details.northwest may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Weighted SWOT Analysis of Northwest Airlines and the Detroit Snowstorm (A) 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 Northwest Airlines and the Detroit Snowstorm (A) 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 Northwest Airlines and the Detroit Snowstorm (A) 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 Northwest Airlines and the Detroit Snowstorm (A) 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 Northwest Airlines and the Detroit Snowstorm (A) 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 Occurred Details.northwest needs to make to build a sustainable competitive advantage.