Swot Analysis: Southwest Airlines

1851 words - 7 pages

Southwest Airlines made its first voyage back in 1971 with service based in the cities of Dallas, Houston and San Antonio (Brief History, 2009). 38 years later, Southwest Airlines has more than 3300 flights a day and serves 66 cities in 33 states (Factsheet, 2009). Southwest Airlines has demonstrated a variety of strengths in its 38 year presence. Recent economic events have also caused a renewed focus on the company's weaknesses. Aside from its weaknesses, Southwest Airlines has also been keeping track of opportunities that currently exist in the market. Like all other companies, however, they still have some ground to make up when analyzing possible threats to its business.A major strength of Southwest Airlines is the brand recognition that its name carries. Most Americans have heard of Southwest Airlines and have possibly even seen the TV commercials associated with the airline. A look at Southwest Airlines' website (www.southwest.com) reveals an expansive look at a company dedicated to customer service. From the booking opportunities to the ability of being able to access the customer service commitment Southwest has made itself into a customer friendly company. Even the company's stock ticker is listed as LUV as in customers "luv" Southwest Airlines. This is not just clever marketing but it also holds true in its business practices. For example, how many airlines make it easy to travel with your pet companion (About SWA, 2009)? Southwest is also the only airline that does not charge you for changing your tickets when other airlines are charging up to $150 a ticket (McCartney, 2009). Southwest is not only flexible when it comes to ticket changes it also offers some of the lowest fares in the industry with some as low as $30 (Benn, July 29, 2009). Southwest not only worries about the factors of getting the customer onto the planes but the comfort of the passengers once they are in flight. One of the current test programs that Southwest is offering is the ability to surf the internet during flight (Kramer, 2009). All of this has resulted in Southwest achieving milestones regarding its service. In New York's La Guardia Airport, Southwest has constantly maintained a better punctuality rate than its competitors who are usually less than 60% on time (Friedman, August 3, 2009). In July of last year, one of Southwest's main competitors, Jet Blue, scored poorly on punctuality while Southwest's punctuality rate was at a whopping 83.33% (Smith, 2008). All of this has resulted in Southwest Airlines being on Fortune 500's list of most admired companies 13 years straight (Colvin, 2009). This honor is more than just the customer service that the airline provides; it encompasses the business of the airline as a whole. Southwest Airline's CEO Gary Kelly states, "we tend to do very well comparatively in a recession-era environment, and we'll probably pick up a lot of business (Colvin, 2009)." Even during a slow economy Southwest manages to maintain its...

Find Another Essay On SWOT Analysis: Southwest Airlines

Air Flights: Five Forces Analysis and Southwest Airlines

1283 words - 5 pages eventually created The Hub-and-Spoke System, which allowed the airlines to attempt to maximize their profitability potential (Harris). Southwest decided against using this type of model, and instead chose to use the lower cost option of point-to-point. Their goal of efficiency led to the crew being able to clean the plane and have new passengers onboard quickly. Value Chain Analysis Primary Activities Finding a niche market for any firm presents

Why Southwest Airlines did so well? This is an analysis/report on strategies implemented by Southwest Airlines.

659 words - 3 pages The reason that Southwest Airlines performed so well comprised many factors. To make the analysis as short and clear as possible without repeating the case too much, I see Southwest's success can be sub-divided into 3 areas of market, cost control, and quality from way the case author has organized.The far most important factor is that Southwest has chosen the type of market it entered. Southwest Airline found its niche market in short-hauls

Analysis of the external environment of "Ryanair –"Southwest" of European airlines" case

1722 words - 7 pages The objective of my report is to analyze the external environment in "Ryanair-'Southwest" of European airlines" case, which is very important factor for the firm's formulated effective strategy. The external environment consists of a wide array of economic and sociopolitical factors. It is the specific market arenas that the organization has chosen in its strategy; it provides the business opportunities to the firm and it's also a source of

Analysis of Southwest Airlines

884 words - 4 pages Air transport is a global industry and as such every airline is a likely challenger for every other. It is contrary to expectation that any airline will be able to contest on a large scale without being associated to other carriers. Traffic feed is the industry's lifeblood and stand-alone carriers will be labored to carry low-revenue point-to-point traffic when front with airlines able to offer manifold route alliances. Southwest Airlines is a

Southwest Airline Inc. case : "PEST" Analysis of Airlines Industry

1052 words - 4 pages bitter rivalry. The hostility between competitors were so harsh that two rivals -Texas International and Braniff joined hands to destroy Southwest Airlines even before it could begin its operation. Failed to stop its operation, the rivals began to put up obstacles at every step Southwest took. No wonder, they were dubbed as "predator" meaning an animal that eats other animals. This attitude of destroying the competitor is found in this case in

southwest strategic strategy

620 words - 2 pages Airlines main focus is, Consumers, Employees, Community, the Environment, and Financial Viability, and is this order in which they stand by. All statements by the organization do not reflect on making a profit, but the happiness of the consumer, employees, communityand the giving back to the shareholders. Southwest strategic plan does interrelate with the goals, vision, mission, values statements.External Analysis, I do believe that Southwest

SouthWest Airlines Case Study.

2977 words - 12 pages investigation in conducting a fundamental SWOT analysis and acquiring information regarding the company's main competitors and customers.Our research will not be limited to just Southwest Airline, our research involves Boeing 737 as well as a few of the opposing companies. Research on these additional topics will be specific, material that pertains or assists in elaborating our recommendations for the company of Southwest.ResultsAccording to the attached

Southwest Airlines 2004 Case Study Report

2289 words - 9 pages as they purchase tickets, but not as expensive as the bottle of liquor that was offered in the past. By providing these give-aways, preferably something that consumers can were, it would expose the Southwest Airlines name to their consumers' family, friends, and passers-by, subconsciously.EXTERNAL ASSESSMENTOpportunitiesSouthwest Airlines' external environmental analysis reveals new opportunities for profit and growth. Southwest Airlines has yet

Southwest Airlines

2974 words - 12 pages This is the historic background of an American Airline company called the Southwest Airlines Co. based in Dallas which still exists and operates with great success between 57 cities in 26 states of the US, by over 300 airplanes , providing primarily short-haul, high frequency, point to point, low fare service . Through this essay we will see an analysis of the company’s advantages and disadvantages through a SWOT Analysis. We will try to

Southwest Airlines

2180 words - 9 pages . Introduction The growth of the commercial airline industry during the second half of this century was truly remarkable. It has had an innovatory impact on economic, technological, and cultural development throughout the world. This paper analyzes Southwest Airlines, and how they are using information technology to gain competitive advantage. First is the industry analysis which gives a sense of what the commercial air transportation

South West airlines

1160 words - 5 pages continuous improvement (Stanley).The mission of the Southwest Airlines to its customers simply states, "The mission of Southwest Airlines is dedication to the highest quality of customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit". Southwest also has a mission statement directed to its employees. It states, "We are committed to provide our Employees a stable work environment with equal opportunity for

Similar Essays

Environmental Analysis: Southwest Airlines

2415 words - 10 pages ://www.forbes.com/pictures/efkk45eddil/no-12-southwest/Fortune Magazine. (2013). World's Most Admired Companies. Retrieved June 8, 2014, from Fortune: http://fortune.com/worlds-most-admired-companies/southwest-airlines-9/Gittell, J. (2003). The Southwest Airlines Way: Using Power of Relationships to Achieve High Performance. New York: McGraw-Hill. Retrieved June 8, 2014MarketLine. (2012, December 21). SWOT Analysis. Retrieved June 8, 2014, from MarketLine: http

Southwest Airlines Financial Analysis

4471 words - 18 pages measure, which informs managers how much investors would be willing to pay above or below the current market price. The ratio is measured as market price per share divided by diluted earnings per share. (p. 284) In the years 2000, 2001, and 2002, analysis shows that investors are willing to pay a considerably higher amount to acquire shares of Southwest Airlines than they would for their competitors, Delta and JetBlue. In 2000, investors were

Analysis Of Southwest Airlines

2695 words - 11 pages EXECUTIVE SUMMARYSouthwest Airlines has come across some issues and the one with the most concern is expansion. Southwest must meet the current and forecasted demand, find sufficient facilities, keep their strategy coherent and consistent, and ensure that the entry into a new market is timely. These issues main constraint is finding facilities at a low cost to remain profitable. What has to be taken into account would be new construction costs

Southwest Airlines Capital Analysis

2155 words - 9 pages : (RITA, n.d.) Southwest Airlines is the only airline company to get listed in the top 50 Fortune magazine as the most admired company (Southwest, 2014, p. 5). They have very strong customer base and customer satisfaction is also high. About 85% of the customers use southwest.com to book their tickets, it is number one airline site which is having an average of 9 million unique visitors per month and it is the first airline to get more than 5 million