SWOT analysis for Santa
The extra costs in labor, occupancy, utilities and financing are decreased by the company’s Cost of Doing Business (CODS) which includes introducing product canners and eliminating administrative tasks. To motivate increasing in spend, balances and lots of cards on issue, the company invested $1. 8 million in its Financial Services business, such as 21 new cardholder events.
To create, confirm, or regulate the Santa’ specific business model which will best attach its resources and capabilities and the demands of the environment, the analysis of Santa’ internal strengths, weakness and external opportunities, threats is compulsory. However, this kind of analysis and comparison is generally referred to as a SWOT analysts (Hill & Jones, 2010). The successful operation of Santa cannot depart from its five advantages. Single type of airplane is the main recipe of low-cost operation.
Due to arrive a retrenchment on maintenance and training, all Santa’ planes are Boss and also plan to purchase 53 Boss from Boeing later. Santa have flexible negotiation, favorable terms for terminal access which even located at the Australia’s main airport, such as Sydney, Melbourne and Brisbane. It is the second merit – low-cost terminal. Moreover, because near ninety per cent of Santa’ fares are booked via internet, it contributes to the tickets distribution. Flexible working practices are another advantages should be mentioned.
For example, the aircraft can be cleaned by cabin crew, thereby decreasing the difference between ground and cabin crews. The last superiority of Santa is it has built its own service culture and a relaxed working environment. The flexibility, teamwork and open communications are the leitmotivs of its culture. Furthermore, the casual uniforms of the staff and the no-tie policy are appropriate examples to illustrate the relaxed working environment in the Santa (Stephan & Peter). However, the disadvantages of the Santa also cannot be ignored.
For instance, the ability of the low-cost airline was restricted drastically by the lack of a real business class and of an airport lounge at Canberra (2004). The comparison of external opportunities and threats is illustrated in the flowing table
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1. International development: starting international services to New Zealand, Fiji, Vaunt and Cook Islands after January 2005.
2. Diversification: selling different holiday packages.
3. Alliance: making code-sharing agreements with United Airlines and similar Unprofitable routes: because of intense competition between Santa and Strata; Forced increasing charges.
Turbulence on board: because of unadvisable management among staffs.
Source: adapted from Tanoak, Stephan & Galvan, Peter. Santa: the high flyer of the airline industry. Therefore, the Santa’ strategies can be identified by the SWOT analysis to develop external opportunities, resist threats, establish and protect company strengths, and eliminate weaknesses.
Strengthening the core business Employees negative
It can affect employee numbers by implementing cost of doing business (CODS) reductions which tried to introduce the product scanners. Therefore, the expected increasing costs in employees can be reduced.