A SouthWest Airlines SWOT Analysis

A Southwest airlines SWOT analysis

Let's look at the the mission of Southwest Airlines first.Southwest is dedicated to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.

After 38 years of service, Southwest Airlines, is the USA's leading low-fare carrier, continues to differentiate itself from other airlines--offering a reliable product with exemplary Customer Service.

It achieves low cost by flying from/to less popular and expensive city airports in the USA. It uses one aircraft type and so gains efficiency as variety promotes inefficiency.

Southwest is the most productive airline in the sky and offers Customers a comfortable travelling experience. It offers a very comfortable ride with all premium leather seats and plenty of legroom with a young all Boeing 737 fleet.

Let do a SWOT analysis on this airline

First detail their strengths

STRENGTHS

• Best low-fare carrier by standardisation of fleet
• Flexible even though unionized - can still negotiate flexible work hours
• Maximises use of Internet for booking
• Great staff relationships - looks after it's staff
• Top class service

Now their weaknesses

WEAKNESSES

• Conservative growth tactics - also a strength!
• Flexible even though unionized - can still negotiate flexible work hours
• Being copied by other airlines
• Limited to 60 plus cities
• Operates mainly its own booking service

Now their treats

THREATS

• Recession - decrease in air travel
• Oil price
• Terrorist attacks
• Competitors Jetblue, Airtran - being copied
• Operates mainly its own booking service

Now their opportunities

OPPORTUNITIES

• Expansion to other cities
• International flights
• Further improve customer satisfaction and value

Derived Strategy for Southwest

Minimise the effect of oil prices rises by hedging their oil purchases and operating the aircraft efficiently.

Continue to cut costs and minimise commitments e.g. aircraft purchases, to minimise the effect of the recession.

Work flat out at attracting customers by providing the best service and value to counter competitors and fall in airline travel.

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