QSPM (Quantitative Strategy Planning Matrix) for Southwest Airlines

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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