Alaska Airlines: Navigating Change Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Alaska Airlines: Navigating Change Case Solution

Introduction

Alaska airline is an American based airline in Seattle Metropolitan area of Washington. Before this, there was McGee Airways, which offered flights from Alaska. Nowadays, the flights of Alaska airline are operating in more than hundred destinations in the world. The reason behind its success was customer loyalty, goodwill, high customer satisfaction and the most important is that they treat their employees as the assets of the company.

The executives of the company comprise of the CEO of Alaska Airlines, Bill Ayer, who also happens to be the president of the company, Brad Tilden was the EVP of Finance, and now is the CFO of the enterprise. Other than the CEO and CFO, Glenn Johnson is the EVP of Airport service. The management of Alaska was concerned that the airline was steadily draining customer loyalty from itself as well as the good will of the company. For that, the company made serious changes in its business for making the position better.

In the year 1985, some incidents took place with this airline such as strikes which lasted for three-months and this resulted in some termination of employees and during that time, the new employees were hired as the replacement of the terminated employees. In late 2000, two tragedies took place;first was the plane crash in which around 88 passengers died and the second tragedy was 9/11.

Other issues were also there such as seven bags per 1000 passengers were being mishandled, and 60% of their total flights were landing on time. The CEO of the company designed a new team to solve these issues.

Problem statement

The problem faced in this case is that can Alaska Airline regain its original position in the market while facing issues such cultural issues and structural issues, which have resulted in the dissatisfaction of customers, and will the customers of the company continue availing the service of Alaska airline?

Case ANALYSIS

SWOT analysis

SWOT analysis includes strengths, weaknesses, opportunities and threats. SWOT is a basic analytical framework, which assesses what the core strength of the organization is which would lead to success and potential weaknesses, which would further lead to failure, as well as potential opportunities and threats.

STRENGTHS:

Alaska airline is has a lot of strengths. The customers of the company are loyal to them as they are sure that they will get value for money services. Another strength of Alaska is its employees;it treats its employees as its as set. The company provides yearly trips to its employees, health benefits, vacations, family incentives and other Perks. These are the reasons why Alaska is operating all over the world while generating maximum revenue in the market.

WEAKNESSES:

Weaknesses indicate all the issues which the company would face, or is going to face. The biggest weakness of the airlines is price. If the company charges higher price, then its strength would become its weakness. Another drawback is basically them is handling of bags. If an airline is repeatedly doing the same mistake, then it may lose its loyal customers. At one point in time,Alaska was also facing this issue, due to which the management of the company took serious actions against it and today they have come up with some positive solutions for that. Another weakness of the airline is time. If most of its flights are departing and landing on time, then it indicates that the company is going in the right direction however,if it is not,then there is something lacking in the workforce of company.................

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