Spirit Airlines Case Summary

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The following was completed to assess the strategic direction of Spirit Airlines, Inc. and recommend alternative strategies based on their internal and external environments. This analysis begins with a survey of the firm’s history and competitive landscape. Next, we complete a comprehensive internal analysis identifying Spirit’s key resources and capabilities and assessing their competitive market position. Lastly, we isolated the firm’s key focal points for success and assessed four potential strategies, beginning with the firm’s current strategy.

In early 2016, Spirit’s new management team made the decision to slow capacity growth while also making a concerted effort to improve quality, consistency and customer relations. The rationale behind this slowing of growth was to focus on current markets and develop them for future business. The ancillary focus on quality, consistency and customer relations strives to remedy major perception issues and attempts to repair and build Spirit’s brand. After reviewing, we agree with direction of repairing the brand to improve consumer relations; however, slowing growth is a risky tactic that could have negative long-term consequences. Spirit became the largest ULCC airline by disrupting the status quo and expanding into underserved markets before their larger competitors could profitably do so. Slowing growth opens the door for other airlines to beat Sprit at what made them America’s seventh largest airline. Therefore, we would like to present three alternative strategies. …show more content…

By educating the consumer of the intricacies of the model, Spirit could increase the primary demand for the ULCC segment from the first-mover, leadership position. By cementing their brand as the ULCC leader, Spirit will become synonymous with low-cost travel and gain mind-share of thrifty

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