Alaska Air Group Inc

Company report, featuring a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and SWOT analysis

Introduction

This report provides an in-depth analysis of Alaska Air Group Inc, one of the world’s ten thousand largest firms. It is regularly updated to guarantee the most current and accurate information available.

Full access to this study on Alaska Air Group Inc, including the SWOT analysis, PESTLE, 5C analysis, CATWOE, Porters Five Forces, MOST analysis, and a myriad of additional high value sections is available only to Premium members.

Apart from examining data, we also recognise potential new products and/or services, predict upcoming market movements, and look for possible collaborations between Alaska Air Group Inc and other businesses.

Company Description

Alaska Air Group Inc. is a major American airline headquartered in Seattle, Washington, and founded in 1932. They are best known for their main product, air transportation services, which they provide to customers in Alaska, the Lower 48, Hawaii, Canada, and Mexico. The company also provides ancillary services such as loyalty programs and cargo delivery services. Alaska Air Group Inc. seeks to provide a safe, reliable, and efficient air travel experience to their customers in the markets they serve.

Industry Overview

Alaska Air Group Inc operates in the airline industry, which is worth an estimated $744.1 billion USD in 2020. This industry is estimated to employ over 1 million across a number of countries, including the United States, China, the United Kingdom, France, and Germany. Employees in this industry are responsible for providing air transportation services, conducting safety checks, and managing customer service.

Industry Classification

In terms of formal classification, Platform Executive has tagged Alaska Air Group Inc as a business operating within the Transport and Logistics industry.

1. Introduction
2. Company Description
3. Industry Overview
    3.1 Industry Classification
4. Intellectual Property
5. Major Products and Services
6. Key Competitors
7. Stakeholders
8. Value Proposition
9. Customers and Cohorts
10. Competitive Advantages
11. Market Trends
12. Key Performance Indicators
13. Financials (BETA)
    13.1 Highlights
    13.2. Board members
    13.3 Share Performance
    13.4 Income Statement
14. PESTLE Analysis
15. Potential Products/Services
16. Potential Synergies
17. Porter's Five Forces
18. CATWOE Analysis
19. SWOT Analysis
    19.1 Strengths
    19.2 Weaknesses
    19.3 Opportunities
    19.4 Threats
20. 5C Analysis
21. MOST Analysis
22. Innovation Scorecard
23. Appendices

Save to Library

Bookmark (0)

To login to your account click here.

Intellectual Property

Some of the Patents granted to, or relevant to the organisation include the following:

Patent Title: Method And System For Tracking Maintenance On Aircraft Components
Patent ID: 10,415,279
Date: May 14, 2019

Patent Title: Method and System for Automatically Detecting and Resolving Network Access Conflicts
Patent ID: 10,412,835
Date: May 7, 2019

Patent Title: Method and System for Developing an Aircraft Maintenance Schedule
Patent ID: 10,406,857
Date: April 23, 2019

Patent Title: Method and System for Using a Generic Database to Maintain Aircraft Maintenance Data
Patent ID: 10,403,983
Date: April 16, 2019

Patent Title: Method and System for Automatically Generating Maintenance Rules for Aircraft Components
Patent ID: 10,400,945
Date: April 9, 2019

Patent Title: System and Method for Automatically Generating Aircraft Maintenance Work Orders
Patent ID: 10,399,322
Date: April 2, 2019

Patent Title: System and Method for Automatically Generating Aircraft Maintenance Work Orders
Patent ID: 10,392,497
Date: March 19, 2019

Patent Title: Method and System for Automatically Generating Aircraft Maintenance Rules
Patent ID: 10,390,402
Date: March 12, 2019

Patent Title: Method and System for Automatically Generating Aircraft Maintenance Requirements
Patent ID: 10,387,053
Date: March 5, 2019

Patent Title: Method and System for Automatically Generating Aircraft Maintenance Rules
Patent ID: 10,381,726
Date: February 19, 2019

Patent Title: Method and System for Automatically Generating Aircraft Maintenance Schedules
Patent ID: 10,378,846
Date: February 12, 2019

Major Products & Services

The main products and/or services commercialised by this business include the following:

Air Transportation Services
Vacation Packages
Aircraft Maintenance Services
Cargo Services
Loyalty Programs
Hotel, Car, and Activity Booking
Credit Card Services
Merchandise
Wi-Fi Services
Charters Services
Flight Training
Group Events
Executive Charter Services

Key Competitors

We have identified the following organisations as being key competitors:

Delta Air Lines
American Airlines
Southwest Airlines
United Airlines
JetBlue Airways
Hawaiian Airlines
Allegiant Air
Frontier Airlines
Spirit Airlines
Sun Country Airlines

Unlock this SWOT analysis report

Each detailed study features a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and an expert SWOT analysis, along with a myriad of other sections.

Premium members have FULL ACCESS to this content and approximately 10,000 similar competitive intelligence reports.

Premium membership is just $195 per month, with annual membership at $1,950 / seat.

UNLOCK CONTENT

Key Stakeholders

Stakeholders are individuals or groups who have an interest in a business and/or are affected by its actions.

These stakeholders can have different requirements and expectations from the business, which must be taken into account when making decisions.

By understanding their stakeholders’ requirements, a business can make informed decisions that benefit all involved.

Below is the list of internal and external stakeholders we have identified for this business:

1. Customers: Alaska Air Group Inc.’s customers are the key stakeholders. They are the people who purchase tickets and fly with the company, and their satisfaction is paramount to the success of the business.

2. Employees: Alaska Air Group Inc.’s employees are also key stakeholders. They are the people who keep the business running, from the pilots and flight attendants to the ground staff and customer service representatives.

3. Shareholders: Alaska Air Group Inc.’s shareholders are another key stakeholder group. They provide the capital to keep the business running and benefit when the company performs well financially.

4. Partners: Alaska Air Group Inc.’s partners, such as other airlines, hotels, and travel companies, are a key stakeholder group. They provide services and/or products to Alaska Air Group Inc. and benefit when the company is successful.

Value Proposition

A value proposition explains the unique value and/or benefits that an organisation provides to its customers, partners, stakeholders and the overall market. It outlines what makes a company like Alaska Air Group Inc different from its competitors, along with what it can offer that key competitors cannot.

A corporate value proposition can be used with the competitive advantages section of this report in order to better understand Alaska Air Group Inc and its position within the marketplace.

The value proposition for Alaska Air Group Inc. is to provide travelers with affordable and convenient air travel. Alaska Air Group Inc. offers a variety of air travel options, including flights to and from the United States, Canada, and Mexico. Alaska Air Group Inc. also offers international flights to destinations in Europe, Asia, and South America.

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Cost Advantage: Alaska Air Group Inc. is able to offer competitive fares to customers due to its efficient cost structure. This includes maintaining a low cost base and a wide variety of partnerships with suppliers and vendors.

Network Advantage: Alaska Air Group Inc. has a vast network of routes that span the United States, Canada, Mexico, Central America, and the Caribbean. This gives customers access to a wide range of destinations and multiple flight options.

Customer Service: Alaska Air Group Inc. is well known for its excellent customer service. The company has a strong focus on creating an enjoyable experience for its customers, which is reflected in its high customer satisfaction ratings.

Brand Recognition: Alaska Air Group Inc. has been in business for over 80 years, and its brand is widely recognised and respected. This recognition has allowed the company to build a loyal customer base and become a trusted name in the airline industry.

Technology: Alaska Air Group Inc. has invested in industry-leading technology to improve the customer experience. This includes a smooth online booking system, mobile apps, and a variety of other digital solutions.

Customers & Cohorts

As part of this competitive intelligence study, we have identified the main customers of the organisation.

These include the following cohorts:

Business travelers
Leisure travelers
Families
Groups
Special needs travelers
Military personnel
Seniors
Vacationers
Adventure seekers
Corporate partners

Market Trends

Market trends can impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and affecting the organisation's ability to remain competitive in the market.

As part of this study, we have identified a number of potential short-term to medium-term trends that could impact the organisation. These include the following:

Rising Fuel Prices: Rising fuel prices are one of the most significant market trends that could impact Alaska Air Group Inc over coming years. As fuel prices increase, so too do the costs of operating flights, which could lead to higher ticket prices. This could ultimately have a negative impact on the company's profits by driving away potential customers.

Increase in Low-Cost Carriers: The increasing presence of low-cost carriers in the market could negatively affect Alaska Air Group Inc. Low-cost carriers offer more competitively priced tickets and can steal customers away from traditional airlines. Alaska Air Group Inc will need to develop strategies to ensure that their prices remain competitive and attractive to customers.

Growing Demand for In-Flight Wi-Fi: Customers are increasingly expecting in-flight Wi-Fi access and Alaska Air Group Inc will need to meet this demand if they are to remain competitive in the industry. Providing Wi-Fi services will require an investment in new technology, which could lead to increased operating costs.

Increasing Number of Air Travelers: The number of air travelers is increasing due to the growing global economy. This could benefit Alaska Air Group Inc as it could lead to increased demand for flights and higher profits. However, the company will need to ensure that its services remain competitive in order to capitalise on this trend.

Key Performance Indicators

Below is a list of KPI's that we have identified as being strategically relevant to this organisation:

Financials (BETA)

The key financials for Alaska Air Group Inc include income statements, which can be found in their annual reports. These financial statements provide information on the organisation's financial performance and health, including revenue, expenses, and profits. This information, along with other indicators are used by investors, analysts and other stakeholders to evaluate the company's performance and future prospects.

Where a financial does not match, we have included those of the parent company (if a listed entity). If the financials are missing please contact us and we will prioritise the update.

Key Personnel

Income Statement

[eod_financials target="ALK.US" id="10329343" preset="Income Statement" years="2018-2023"]

Highlights

Top-level corporate stats and financial highlights for the listed entity, include:

Share Performance

Below is the current (EOD) share performance for the company, or its listed parent:

Potential Products/Services

As part of this study we have attempted to prognosticate potential products and/or services this organisation could develop in the short to medium-term.

In-Flight Entertainment: Alaska Air Group Inc could create an in-flight entertainment package for its customers that includes movies, TV shows, and music.

Mobile App: Alaska Air Group Inc could create a mobile app that allows customers to book flights and access their travel information in one place.

Travel Insurance: Alaska Air Group Inc could offer travel insurance to its customers to cover any unexpected costs associated with their trip.

Loyalty Program: Alaska Air Group Inc could create a loyalty program that rewards customers with discounts and other benefits for their loyalty and frequency of flying.

Airport Lounges: Alaska Air Group Inc could create airport lounges in select airports to provide a comfortable space for customers to relax before their flight.

Car Rental Service: Alaska Air Group Inc could offer a car rental service in select cities, allowing customers to easily rent a car at the airport.

Discounted Accommodations: Alaska Air Group Inc could offer discounted hotel and lodging accommodations, allowing customers to save money on their trip.

Potential Synergies

Using our product and portfolio-matching algorithm, we have determined that the following organisations have potential synergies with the company:

1. Boeing: Alaska Air Group Inc is the largest operator of Boeing planes in the world, and the two companies have worked together on numerous projects, including the introduction of the Boeing 737 MAX 8.
2. Airbus: Alaska Air Group Inc is a major customer of Airbus, having purchased A320s and A321s for its fleet.
3. Delta Air Lines: Alaska Air Group Inc and Delta Air Lines have a joint venture agreement which allows both companies to benefit from shared resources and cost savings.
4. Amazon: Amazon and Alaska Air Group Inc have a partnership in which Amazon offers discounted flights to Prime members.
5. Microsoft: Alaska Air Group Inc and Microsoft have a long-term partnership which includes the use of Microsoft Azure Cloud services.
6. Alaska Airlines Cargo: Alaska Airlines Cargo is a subsidiary of Alaska Air Group Inc that provides cargo services for the airline.

Porter's Five Forces

Created by Harvard Business School Professor Michael Porter in 1979, Porter's Five Forces model is designed to help analyse the particular attractiveness of an industry; evaluate investment options; and better assess the competitive environment.

The five forces are as follows:

Competitive rivalry
Supplier power
Buyer power
Threat of substitution
Threat of new entries

Alaska Air Group Inc scores well in relation to Porter's 5 forces. The company has a strong competitive position, with a high market share and a diversified customer base. It has a strong brand and a good reputation. It has a good cost structure and a efficient operations. The company has a good financial position and is well positioned to weather any industry downturns.

PESTLE Analysis

This PESTLE analysis is a strategic planning tool that assesses key external factors affecting the organisation, including the following:

Political
Economic
Social
Technological
Legal
Environmental

Each of these factors is analysed to determine their impact on the organisations strategy, objectives, and operations.

By utilising a PESTLE analysis, the organisation can make better decisions and develop strategies to address potential risks and opportunities.

CATWOE Analysis

The CATWOE analysis is used to investigate each stakeholders perspectives in order to enable the business to make informed decisions.

The CATWOE analysis is a problem-solving tool consisting of six elements:

Customers
Actors
Transformation process
World view
Owners
Environmental constraints

We view the CATWOE as being most useful when used in conjunction with other problem-solving tools such as a SWOT analysis.

Customers: Alaska Air Group Inc. provides commercial air travel to passengers looking to travel domestically and internationally.

Actors: The main actors in the organisation are the pilots and flight attendants, who provide the service of air travel. Other actors include the customers, the marketing and sales team, the maintenance team, the IT team and the executive team.

Transformation process: The transformation process involves the customer booking a ticket, which is processed through the marketing and sales team. The pilots and flight attendants then ensure the safety of the passengers during their flight, while the maintenance team ensures that the aircrafts are in good condition. The IT team provides technical support for the booking process and for the aircrafts.

World view: Alaska Air Group Inc. operates under the belief that air travel should be safe, affordable and accessible to everyone. They strive to provide the highest quality of service to their customers while also being socially responsible.

Owners: Alaska Air Group Inc. is owned by Alaska Air Group Inc. Corporation, a publicly traded company.

Environmental constraints: Alaska Air Group Inc. must adhere to regulations set by the Federal Aviation Administration. In addition, they must also comply with other laws and regulations related to the environment and safety. They must also ensure that their aircrafts are compliant with international standards.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the Alaska Air Group Inc business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

Strengths

Below is a list of the strengths we have identified for the business:

1. Alaska Air Group Inc. is a leading regional airline with an extensive network in the United States.

2. The airline has a strong commitment to safety and has a very low accident rate.

3. Alaska Air Group Inc. has a strong commitment to its customers and has a strong reputation for providing excellent service.

4. The airline is well-funded and has a strong balance sheet.

Opportunities

Below is a list of opportunities we have identified for the business:

1. Develop a comprehensive network of routes and destinations: Alaska Air Group Inc. should focus on expanding its route network and increasing the number of destinations to better serve its customers. This can be achieved by enhancing its partnerships with other airlines, as well as initiating new routes in both domestic and international markets.

2. Invest in digital transformation: Alaska Air Group Inc. should invest in modernizing its digital infrastructure to improve customer experience and operational efficiency. This includes investing in technology and platforms such as mobile apps, self-service kiosks, and AI-powered systems to streamline processes, reduce costs, and improve customer satisfaction.

3. Increase customer loyalty: Alaska Air Group Inc. should focus on increasing customer loyalty by providing unique rewards and loyalty programs. This includes offering discounts, free upgrades, and exclusive access to services and amenities, as well as improving its customer service.

4. Focus on cost-cutting initiatives: Alaska Air Group Inc. should focus on reducing costs in various areas such as fuel, labour, and marketing. This can be achieved by consolidating functions, introducing new technologies, and optimizing processes to reduce inefficiencies.

Weaknesses

Below is a list of the weaknesses we have identified for the business:

1. Poor fleet planning: Alaska Air Group Inc. has made a number of strategic errors in recent years in terms of its fleet planning. In particular, the company made the ill-fated decision to purchase a large number of Boeing 737NG aircraft just as fuel prices were beginning to rise sharply. This has left the company with a large number of fuel-inefficient aircraft that are now costing it a fortune to operate.

2. high cost structure: Alaska Air Group Inc. has one of the highest cost structures in the US airline industry. This is largely due to the company's high labour costs, which are a result of the company's strong union presence. Alaska Air Group Inc. also has high fuel costs, which are a result of its fuel-inefficient fleet.

3. weak competitive position: Alaska Air Group Inc. has a weak competitive position in the US airline industry. The company has a small market share and is facing strong competition from larger airlines such as Delta Air Lines and American Airlines.

4. poor customer service: Alaska Air Group Inc. has a poor reputation for customer service. The company has been plagued by a number of high-profile customer service problems in recent years, which has damage its brand.

Threats

Below is a list of the threats we have identified for the business:

1. Intensified competition: Alaska Air Group Inc faces increased competition from other carriers, both domestic and international, which are expanding their presence in the company’s primary markets. This could lead to reduced fares and a decrease in the company’s market share.

2. Fuel costs: Fuel prices can have a significant impact on the airline’s profitability. High fuel costs can lead to increased operating costs and reduced profitability.

3. labour costs: labour costs are a major expense for the company, and rising labour costs can negatively impact the company’s bottom line.

4. Technology disruption: The airline industry is continually evolving and technological advances can disrupt the industry. Alaska Air Group Inc must stay ahead of the curve to remain competitive and ensure that it is able to offer the most efficient and cost-effective services.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.

This (concise) 5C analysis examines the external and internal environment for Alaska Air Group Inc. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to Alaska Air Group Inc, as well as areas where the company needs to improve its operations or strategy.

Company: Alaska Air Group Inc is an American airline holding company based in Seattle, Washington. It is the parent company of Alaska Airlines, Horizon Air, and various regional carriers. The airline operates flights to more than 115 destinations in the United States, Canada, Mexico and Costa Rica.

Collaborators: Alaska Air Group Inc works closely with a variety of partners in order to provide the best service for its customers. These include airports, vendors, and other airlines, such as American Airlines, Delta Air Lines, and United Airlines.

Customers: The primary customers of Alaska Air Group Inc are travelers who are looking for a reliable and affordable way to get to their destination. The airline focuses on providing a high level of customer service and satisfaction in order to ensure that customers come back again.

Competitors: Alaska Air Group Inc faces competition from a number of other airlines, including Southwest Airlines, JetBlue Airways, and Hawaiian Airlines. The company strives to differentiate itself from its competitors by providing a superior customer experience and competitive airfares.

Content: Alaska Air Group Inc focuses on providing its customers with an enjoyable travel experience. The airline offers a variety of amenities, including in-flight entertainment, complimentary snacks and beverages, and comfortable seating. It also provides a variety of rewards and loyalty programs to encourage customers to fly with them.

MOST Analysis

The MOST analysis framework is commonly used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. This analysis helps organisations to focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles that may arise along the way.

Mission
Objectives
Strategy
Tactics

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

As part of our research and analysis activity, the team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism.

First, we allocate a score of A-E for the industry vertical, gauged on the key organisations operating within the space; and then score the individual business using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant into the marketplace; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that in the view of the analysis team it lags behind notable businesses in terms of innovation and product pipeline.

Below is a guide to each score:

Industry score:

A	The industry is amongst the most innovative; with the leading players all driving the sector forward. Example industry: PaaS
B	The industry and its leading players have a good track record of innovation; and can quickly react to change. Example industry: Pharmaceutical
C	Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate. Example industry: FMCG
D	Businesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption. Example industry: Retail Banking
E	The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change. Example industry: Publishing

Company score:

1	The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2	The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3	The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4	The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5	The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.

The team at Platform Executive has judged Alaska Air Group Inc as having an innovation score of D2.

Appendices

The appendices section of this report contains supplementary information that the team at Platform Executive deems helpful in providing a more comprehensive understanding of the report's contents.

This information is not considered an essential part of the study but serves as a useful supplement to the main text.

Methodology

This study on Alaska Air Group Inc forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The information and data included are updated on a timely schedule to ensure that our Premium members receive the most up to date information .

The report is based on information and learning from the following sources:

Corporate websites
Proprietary research databases
SEC Filings
Corporate press releases
News articles
Financial data API's
Product-matching algorithm

Further Information

Premium members: If you cannot find the desired information or data set for the business you are researching then please reach out to our research and analysis team. We can tailor reports to meet your requiremnents, with a fast turnaround time.

If you require a bespoke study on a particular industry vertical, or marketplace we may also be able to help.

Disclaimer

Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Changelog

Premium members: To request a priority update to this report, please contact us. Our standard turnaround time is normally 48 hours.

The changelog for this report can be found below, complete with the next scheduled update:

v1.1: Initial load of report
Date: 1st March 2023

Key Financials added (BETA)
Date: 17th March 2023

Next scheduled update: 23rd May 2023

Industry Keywords

Related keywords:

Aircraft Airline Cargo Carrier

Abercrombie & Fitch Company

AngioDynamics Inc