Southwest airlines swot essay
Southwest airlines competitor analysis
As circumstances, capabilities, threats, and strategies change, the dynamics of a competitive environment may not be revealed in a single matrix. Even though the product is a success in terms of sale but its positioning and unique selling proposition is not clearly defined which can lead to the attacks in this segment from the competitors. The airline is no longer really low-fare or low-cost, but does not offer any of the amenities of hybrid or full service airlines. CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets. The major strengths of Southwest Airlines are as follows: Strong commercial aviation brand Large fleet and organizational size Scalability of operations involving a point-to-point system As a large-scale low-cost carrier, Southwest Airlines enjoys a strong brand that enables the business to attract passengers. This is one of the major limitations of SWOT analysis. It's shielded from record high jet fuel prices, and where it treads, other airlines quiver. The SWOT analysis framework evaluates the enterprise in terms of business strengths and weaknesses internal factors and opportunities and threats external factors in the commercial aviation industry. However, the weaknesses identified in this SWOT analysis indicate that Southwest Airlines has strategies that limit its current business profitability and growth. Southwest Airlines needs to address its weaknesses to maximize the benefits of its business strengths. The expansion has helped the organization to build new revenue stream and diversify the economic cycle risk in the markets it operates in.
On the other hand, regulatory changes in commercial aviation are a minor threat that imposes challenges and associated costs in compliance efforts. In the SWOT analysis model, these opportunities are external factors that present ways of improving the airline corporation.
Economic uptick and increase in customer spending, after years of recession and slow growth rate in the industry, is an opportunity for Southwest Airlines to capture new customers and increase its market share.
Stable free cash flow provides opportunities to invest in adjacent product segments. Its ability to offer its large passenger base access to near international leisure destinations is a natural progression, and should create some revenue upside once the markets reach maturity.
The airlines serves 62 cities in 32 states and tries to offer most point to point flights in order to cut cost, save fuel and also reduce the chances of delays. Yet staying stuck in a year old mindset stifles innovation, which is something Southwest needs to focus on in order to remain relevant in the long term.
Right now the investment in technologies is not at par with the vision of the company. New trends in the consumer behavior can open up new market for the Southwest Airlines. The aircraft has fewer operating problems ever which means that there is low chance of encountering an operating issue and hence Southwest can deliver on its promise of on-time arrival and departures.
Southwest airlines swot essay
The airline is no longer really low-fare or low-cost, but does not offer any of the amenities of hybrid or full service airlines. The company can face lawsuits in various markets given - different laws and continuous fluctuations regarding product standards in those markets. Considering the internal factors and external factors in this SWOT analysis, it is recommended that the company expand its operations to other air travel markets. This external factor is a threat because air transportation firms depend on fuel, which account for major operating costs. The airlines serves 62 cities in 32 states and tries to offer most point to point flights in order to cut cost, save fuel and also reduce the chances of delays. Organization structure is only compatible with present business model thus limiting expansion in adjacent product segments. Strong distribution network — Over the years Southwest Airlines has built a reliable distribution network that can reach majority of its potential market. It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too. Southwest has previously acknowledged that its labour agreements are built on an operating model it executed 10 to 15 years ago, and the airline has one of the highest pay structures in the industry.
It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too.
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