SWOT Analysis
SWOT Analysis will evaluate and identify the strengths, weaknesses, opportunities, and threats of Southwest Airlines.
Strength
Southwest Airlines has an effective performance, sound fleet operations, and good brand reputation in the U.S market. It is low fare carrier airlines that have efficient, dedicated, and friendly employees. It has offered valuable services to the customers in reasonable price that resulted in highest number of satisfied passengers per year. It has strong executive team and large number of skilled employees.
Weaknesses
It is noticed that the company has little diversification and mostly employees are unionized. The company has experienced decline in its revenues that affected its profit. It mostly depends on a single manufacturer and passenger revenue is the main source of earning. The airline has not offered segmentation to the customers such as first class and others.
Opportunities
The company can enter into the new phase of international flights and expand its operation globally. It can enhance its web booking services and introduce new technology in the planes that will attract more passengers. The technological innovation would improve the employees and operational performance.
Threats
The strong competition in the airline industry is severe threats for the company. The intense competition is reported in new and existing airline companies. The increased cost of labor and price fluctuations in the fuel industry may affect its performance. New government regulations and taxes and a joint venture with other companies are the risks for Southwest Airlines .
The outcome of IFE is 2.44 and EFE is 2.46 that show that the company has created an average response. It has focused the generic business-level strategy and tried to compete in a particular industry. It is noticed that company has focused the low airfares, efficient operations, corporate culture, and dedication of all employees that is the best strategy based on the outcome of the IEF EFE. It has managed its cost and differentiates it from other competitors in terms of technology, services, and another element. The broad target marketing for the company is an international market after Acquisition of Air Tran Holdings .
References
Danielihliu. (2012). Southwest Airlines Co. SWOT Analysis. Retrieved from http://www.danielihliu.com/blog/2012/03/25/southwest-airlines-co-swot-analysis/
Southwest Airlines . (2011). Investor Relations. Retrieved from http://investors.southwest.com/news-and-events/news-releases/2011/02-05-2011
LA2
Space Matrix Southwest Airlines
X-coordinate 2.75
X-Coordinate -1.75
FP
Conservative
Defensive Competitive
Southwest Airlines should take X strategy and focus the service development. It needs to maintain its position in the airline industry through developing new market penetration techniques and service innovation. The company needs to expand its operations in the international markets that will increase its sales and revenues. The company should provide valubale services in a reasonable price as compare to other competitors.
References
Southwest Airlines. (2015). Southwest Airlines Co. 2015 Annual Report to Shareholders. U.S: Southwest Airlines.
