SWOT Analysis of Southwest Airlines

Southwest Airlines Corporation is an USA’s low-cost airline. It is the biggest airline in the world by carrying highest number of passengers per year 2009. As of 31 December, 2009, it drives more than 3,200 flights daily. Southwest Airlines has carried more customers than any other U.S. airline since August 2006. It is also known as the synonym for customer service quality and low-cost. To better understand the Southwest Airline the SWOT analysis of is discussed below.

 

Strengths

 

  1. Ambition for the airline industry and other businesses around the world  
  2. Low cost leadership southeast airline adopted low cost strategy to give every individual to fly with southeast airline at the lowest possible fares.
  3. 40 years old in airline industry achieved economies of scale.    
  4. Southwest Airlines has constantly been victorious in terms of profitability, good union and employee relations, and customer satisfaction.
  5. Recognized as one of the great value and excellent service.
  6. Proposed acquisition of AirTran Holdings, Incorporating the parent company of AirTran Airways; the acquisition will considerably enlarge Southwest Airlines’ low-fare service to several further customers in more domestic destinations or markets.
  7. Central to the company’s achievement is a culture of family-orientation, flexibility, and fun.
  8. Whereas 90% of its employees are unionized, labor relationships have been extremely positive, particularly by industry standards.
  9. Highest daily domestic departures than any other commercial U.S. airline
  10. Ranked number one “Most Reliable Airline for dependability” in Forbes Magazine, 2008, and ranked number one “Customer Service or Friendliest Airline” Time.com, 2008, and “Readers’ Choice Award for Best Airfare Prices”SmarterTravel, 2009

Weaknesses

 

  1. There are no prescribed structures for labor or union involvement in management decision making
  2. Less number of international takeoffs and less flying during morning time
  3. Do not have segmentation such as Business Class, Economy class, and Lower class etc.
  4. Dependence on single producer
  5. Legroom to carry freight and cargo is limited.

 

Opportunities

 

  1. After the economic crises in 2009; yet revival has pursued rapidly as the industry consistently revisited to its long-term increase rate of approximately 5 percent per year.
  2. Traveler traffic is predictable to raise by six percent for the year, with related annual growth rates for 2011 throughout 2014.
  3. Quickly increasing air service within China and other rising economies and the increase of low-cost carrier (LCC) business models all over the world drive this market segment.
  4. Increase international tourism and investment and is consequently vital to the globalization taking place in numerous other industries.
  5. United States of America is the largest single market in the world
  6. USA Airline industry aviations are competent, technologically superior industry with financial potency and access to global markets.
  7. Technology has increased ways of advertisement, and also increasing ways of ticking such as internet etc
  8. Tourism is increasing all over the world and it has also increased longer duration of flights
  9. In addition, the increased capabilities of the most recent long-range, twin-aisle airplanes generate opportunities for players to take advantage of the continuing liberalization of air convey markets to unlock new nonstop routes.

 

Threats

 

  1. Demand for air travel fluctuates generally for the services to be provided
  2. Fuel prices are increasing as economic conditions gets better.
  3. Strong competitors, in terms of limitation capacity, pricing, consolidation scheduling, and alliance activities
  4. Increasing impact of the governmental regulations to the industry operations
  5. Customers have complaints about refunds. It means that people are not getting their money in time
  6. The majority of the major airlines have undergone cost reformation
  7. Due to the terrorism number of customers is decreasing to fly for South Asia, Iraq, Iran, Africa etc.  

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