QSPM (Quantitative Strategy Planning Matrix) for Southwest Airlines | ||||||
Alternative 1 | Alternative 2 | |||||
Key Factors | Expand Airfare to Europe | Add Longer Flights without Stops | ||||
Internal Strength | Weight | Attractiveness Score | Total Attractiveness Score | Weight | Attractiveness Score | Total attractiveness Score |
Diverse Management | 12% | 1 | 0.12 | 8% | 2 | 0.16 |
Low Cost Carrier | 17% | 3 | 0.51 | 18% | 3 | 0.54 |
High Usuage by Customers | 13% | 4 | 0.52 | 15% | 3 | 0.45 |
One Type of Plane in Fleet | 12% | 2 | 0.24 | 13% | 3 | 0.39 |
Good Safety Report | 10% | 3 | 0.3 | 8% | 2 | 0.16 |
Internal Weaknesses | ||||||
No Flights to Europe | 13% | 4 | 0.52 | 15% | 1 | 0.15 |
One Type of Plane in Fleet | 11% | 2 | 0.22 | 8% | 2 | 0.16 |
Union Employees | 7% | 1 | 0.07 | 9% | 1 | 0.09 |
Can Only Book Through Southwest | 5% | 1 | 0.05 | 6% | 1 | 0.06 |
Sum Weights | 100% | 100% | ||||
External Strength | Weight | Rating | Weighted Score | Weight | Rating | Weighted Score |
Air Travel will Increase | 13% | 4 | 0.52 | 18% | 3 | 0.54 |
Markets to Europe Can be Penitrated | 12% | 4 | 0.48 | 12% | 0 | 0 |
Better Technology on the Horizon | 15% | 3 | 0.45 | 15% | 2 | 0.3 |
Longer Nonstop Flights are a Growing Market | 18% | 4 | 0.72 | 18% | 4 | 0.72 |
External Weaknesses | ||||||
Increase in Fuel Prices | 13% | 2 | 0.26 | 13% | 1 | 0.13 |
Increase in Competition | 10% | 1 | 0.1 | 11% | 1 | 0.11 |
No Much Room for More Cost-Cutting | 8% | 0 | 0 | 8% | 0 | 0 |
Development of High Speed Rail System | 11% | 2 | 0.22 | 5% | 1 | 0.05 |
Sum Total Attractiveness Score | 100% | 5.3 | 100% | > | 4.01 |
The Quantitative Strategic Planning Matrix when applied to two alternative strategies for Southwest Airlines, there is a clear direction that should be taken. This form of analysis is used for the long-term planning within an organization. The two strategies that were analyzed were to expand to Europe with flights or to add more nonstop longer flights. The analysis showed that the airline should expand to include flights to Europe. The purpose of the matrix is for an organization to access their internal and external environments to help lead the organization into a strategy that give quantitative information instead of gut feelings. This type of matrix, although is based on opinions with the organization, takes other matrices into consideration prior to assembling this matrix. The organization must first loot at the IFE, EFE and then the SWOT. From these aforementioned matrices, a clearer picture will appear that will help to confirm an alternative strategy that is most attractive for the organization to move forward (David, David, & David, 2008).
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