Soutwest airlines swot analysis

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  • Publicado : 13 de octubre de 2010
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Southwest Airlines

1. SWOT Analysis

Strengths
* Employee motivation
* Employee commitment – achieved an esprit de corps; negotiated flexible work rules
* Passenger entertainment* Conservative approach to expansion
* Internally financed
* Used only fuel-thrifty 737s
* Large number of passengers – high frequency flying
* Rock-bottom prices – no amenities* Advancing competition mindset (SW vs. bus and personal vehicles’ cost of transportation)
* Cost containment – customer service; refused to hire extravagantly
* Cost of: maintenance,training, and inventory were reduced when all planes were Boeing 737s type.
* Fastest turnaround time on the ground
* Industry’s highest Standard & Poor’s credit rating
* Never havingpassenger fatality

Weaknesses
* Ill-fated acquisition in 1986 (TransStar)
* Unionized workers
* Loomed labor negotiations as the company started growing up
* Expansion threatenedefficiency
* Negligence to safety inspections and maintenance

Opportunities
* Short hauls and lowest prices
* Frequent departures
* Take on slack by big competitors folding up operations* “guerilla warfare” – efforts concentrated against stronger opponents in only a few areas
* East Coast pressuring competitors to back away from some lucrative markets
* Service to Mexico,Canada and the Caribbean
* Fly 100-seat jets to smaller markets as they grew up
* Enter the transcontinental market
* Nonstops with 737-700 (Thanksgiving Day experiments)
* Higherprices – more amenities
* “Business Select” fares

Threats
* Competitors’ influence (Congress and FAA)
* New breeds of low-price competitors
* Fuel costs ended their advantage on fuelefficiency
* In 2006, “legacy carriers” reappeared with lower costs of operations and premium overseas traffic

2. Southwest Airlines specific positioning strategy is to maximize revenue...
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