"Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549
On January 15, 2009, shortly after takeoff from LaGuardia Airport, US Airways Flight 1549 struck a flock of Canada geese. The geese were then sucked into the plane's twin engines, causing total engine failure and the loss of power. Case A of this three-part series recounts how over the following four minutes, Flight 1549's Captain Chesley "Sully" Sullenberger and First Officer Jeffrey Skiles grappled with a variety of extreme challenges. Not only did they have to keep the plane under control, but they also had to quickly decide whether they could make an emergency landing at a nearby airport - or find another alternative to get the plane down safely in one of the most crowded regions in the country. Cases B and C then describe how, after the plane landed in the cold waters of the Hudson River, emergency responders from many agencies and private organizations - converging on the scene without a prior action plan for this type of emergency - scrambled to both rescue passengers and crew and stabilize the aircraft as it began to move downstream. Case Number 1966
Authors :: Jennifer Weeks, Arnold Howitt, Dutch Leonard
Swot Analysis of ""Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549" written by Jennifer Weeks, Arnold Howitt, Dutch Leonard includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that 1549 Plane facing as an external strategic factors. Some of the topics covered in "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 case study are - Strategic Management Strategies, Decision making, Leadership, Organizational culture, Risk management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google,
banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the 1549 Plane, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which 1549 Plane 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 "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 can be done for the following purposes –
1. Strategic planning using facts provided in "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 case study
2. Improving business portfolio management of 1549 Plane
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of 1549 Plane
Strengths "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of 1549 Plane in "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 Harvard Business Review case study are -
High brand equity
– 1549 Plane has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled 1549 Plane to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 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.
Successful track record of launching new products
– 1549 Plane has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. 1549 Plane has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Effective Research and Development (R&D)
– 1549 Plane 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 "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Leadership & Managing People industry
– "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 firm has clearly differentiated products in the market place. This has enabled 1549 Plane to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped 1549 Plane to invest into research and development (R&D) and innovation.
Learning organization
- 1549 Plane is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at 1549 Plane is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– 1549 Plane is present in almost all the verticals within the industry. This has provided firm in "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 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.
Strong track record of project management
– 1549 Plane 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 switching costs
– The high switching costs that 1549 Plane 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.
Ability to recruit top talent
– 1549 Plane is one of the leading recruiters in the industry. Managers in the "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– 1549 Plane 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 "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the 1549 Plane are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Weaknesses "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 are -
Interest costs
– Compare to the competition, 1549 Plane has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Lack of clear differentiation of 1549 Plane products
– To increase the profitability and margins on the products, 1549 Plane needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
1549 Plane 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though 1549 Plane has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, 1549 Plane 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. 1549 Plane 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, 1549 Plane is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– After analyzing the HBR case study "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Workers concerns about automation
– As automation is fast increasing in the segment, 1549 Plane 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Jennifer Weeks, Arnold Howitt, Dutch Leonard suggests that, 1549 Plane 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.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of 1549 Plane supply chain. Even after few cautionary changes mentioned in the HBR case study - "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left 1549 Plane vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– 1549 Plane has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Opportunities "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 | 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 "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, 1549 Plane can use these opportunities to build new business models that can help the communities that 1549 Plane operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Better consumer reach
– The expansion of the 5G network will help 1549 Plane to increase its market reach. 1549 Plane 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.
Using analytics as competitive advantage
– 1549 Plane 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 "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 - to build a competitive advantage using analytics. The analytics driven competitive advantage can help 1549 Plane to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for 1549 Plane 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 1549 Plane to hire the very best people irrespective of their geographical location.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. 1549 Plane can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help 1549 Plane to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Lowering marketing communication costs
– 5G expansion will open new opportunities for 1549 Plane in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Manufacturing automation
– 1549 Plane can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, 1549 Plane is facing challenges because of the dominance of functional experts in the organization. "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 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.
Developing new processes and practices
– 1549 Plane can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects 1549 Plane can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, 1549 Plane can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Building a culture of innovation
– managers at 1549 Plane 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 Leadership & Managing People segment.
Threats "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549, 1549 Plane may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for 1549 Plane in the Leadership & Managing People industry. The Leadership & Managing People industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
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.
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 1549 Plane business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. 1549 Plane can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– 1549 Plane 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. 1549 Plane can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents 1549 Plane with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of 1549 Plane
– 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 1549 Plane.
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. 1549 Plane needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 1549 Plane.
Technology acceleration in Forth Industrial Revolution
– 1549 Plane has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, 1549 Plane needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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 1549 Plane in the Leadership & Managing People sector and impact the bottomline of the organization.
Regulatory challenges
– 1549 Plane 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 Leadership & Managing People industry regulations.
Weighted SWOT Analysis of "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 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 "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 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 "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 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 "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 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 "Miracle on the Hudson" (A): Landing U.S. Airways Flight 1549 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 1549 Plane needs to make to build a sustainable competitive advantage.