Preview

Cast Study of Southwest Airlines 2008

Satisfactory Essays
Open Document
Open Document
966 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Cast Study of Southwest Airlines 2008
Running head: CASE ANALYSIS “SOUTHWEST AIRLINES 2008”

Case Analysis “Southwest Airlines 2008” Nacs Tu (Yi-Ru Tu)

The University of IOWA, Henry B. Tippie College of Business

2

CASE ANALYSIS “SOUTHWEST AIRLINES 2008”

Abstract This paper explores the analysis of the case Southwest Airlines 2008 that displays the firm’s business model and sources for competitive advantage by answering three questions, 1. Would you consider the airline industry as attractive to compete in? 2. Why Southwest Airlines was able to grow into the industry leader? 3. Why southwest Airlines was able to attract customers better than its competitors, in the other words, what made its competitive advantage? This paper examines PESTEL analysis for opportunities and threats discovery, in the mean time, by following PESTEL analysis; it reveals the key factors of Southwest Airlines being leader in United States airline industry.

3

CASE ANALYSIS “SOUTHWEST AIRLINES 2008”

Case Analysis “Southwest Airlines 2008” 1. Would you consider the airline industry as attractive to compete in? NOTE: explore opportunities and threats for being in the industry. Yes, if we can find an unique business model to deliver value to customers with profitable level.  Opportunities of airline industry are,  "The global economy is recovering from the depths of the financial crisis much more quickly than could have been anticipated. Airlines are benefiting from a strong traffic rebound that is pushing the industry into the black," IATA CEO Giovanni Bisignani said in a statement.  Open skyies agreement draw new enters attentions and also open the opportunities to new markets.  Peoples like to do self service than ever which reduce much operating cost.  More and more customers prefer to have less food but cheaper fare; In another way, some people prefer to pay more for luxury reason.  Demand on China route is creasing dramatically.  Threats of airline industry are,  Planes, fuel, gates, major
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Southwest Airline Case Study
    • 1202 Words
    • 5 Pages

    Southwest Airline Case Study

    The paper is about how the airline company named as the Southwest Airlines has been able to cater to the needs of the customers while still holding a greater market share in the Airline industry specifically during the economic crises phase.…

    • 1202 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Southwest Airlines Strategic Plan
    • 5067 Words
    • 21 Pages

    Southwest Airlines Strategic Plan

    Due to the economic crisis, fuel prices, and act of god environmental crisis, airline industries have suffered in the last ten years. However, these major threats do not seem to threaten Southwest Airlines. In fact, Southwest has been achieving consistent annual profitability for 38 consecutive years. (“Annual Report,” 2010)…

    • 5067 Words
    • 21 Pages
    Good Essays
    Read More
  • Best Essays

    Southwest Airlines Case Analysis
    • 4181 Words
    • 17 Pages

    Southwest Airlines Case Analysis

    “The U.S. airline industry had lost money in 14 of the 28 years from 1980 through 2007, with combined annual losses exceeding combined annual profits by $15 billion. Yet in July 2008, Southwest reported record quarterly revenues, its 69th consecutive quarter of profitability, rising passenger traffic on its flights, and a record load factor.”5 With a brilliant strategy of ‘low cost/low fare/no frills’ Rollin King, along with Herb Kelleher, launched the most surprising success story in airline history. In 1966, King had an idea. “His business concept for the airline was simple: attract passengers by flying convenient schedules, get passengers to their destination on time, make sure they have a good experience, and charge fares competitive with travel by automobile.”5…

    • 4181 Words
    • 17 Pages
    Best Essays
    Read More
  • Powerful Essays

    Southwest Internal Analysis
    • 1766 Words
    • 8 Pages

    Southwest Internal Analysis

    This internal business analysis is on Southwest Airlines, which was founded in 1967 by Rollin King and Herb Kelleher. The main focus for Southwest Airlines was to provide low cost flights for their customers, and also have exceptional customer satisfaction. Southwest is a leading airline company that continues to do well in an industry that has been historically challenging. For instance, in the span of two years (2005-2007) five major airlines have filed for bankruptcy. The challenges are great in the airline industry, because competitors are trying to imitate the “low-cost” offering of Southwest. Many companies have tried to do what Southwest has done, and many have failed to stay in business. Surprisingly, many of those companies were started by ex-employees of Southwest. Southwest currently has a profitability record for the past thirty six years, which is spectacular in such a challenging industry. Herb Kelleher has been replaced by Gary C. Kelly, as the president when he resigned in May of 2008. Southwest is in the process of expanding the locations they serve so that they can increase market share, and also find ways to cut costs without losing their quality. In order for southwest to continue their consecutive financial success there is a necessity for excellence in the execution process of their strategy.…

    • 1766 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Better Essays

    Southwest Airlines 2010 Case Study
    • 1429 Words
    • 6 Pages

    Southwest Airlines 2010 Case Study

    Cited: Freiburg, K. &. (1996). Nuts! Southwest Airlines: Crazy Recipe for Business and Personal Success. Austin, Texas: Bard Press.…

    • 1429 Words
    • 6 Pages
    Better Essays
    Read More
  • Powerful Essays

    Southwest Airlines Strategic Analysis
    • 9620 Words
    • 39 Pages

    Southwest Airlines Strategic Analysis

    The case study, prepared by Arthur A. Thompson, University of Alabama, and John E. Gamble, University of South Alabama, focuses on the rise to business prominence of Southwest Airlines, a regional airline with a low-cost no-frills approach.…

    • 9620 Words
    • 39 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Skywest Case Study
    • 5493 Words
    • 22 Pages

    Skywest Case Study

    Conclusion: This report concludes that SkyWest is a strong industry leader because of excellent reputation for being efficient and agreements with other airlines. However, because of contracts with the other airlines SkyWest is not immune to the same issues that affect the industry as a whole. As of 2009 SkyWest primarily operated through partnership contracts with major airlines. As the major airlines faced bankruptcy SkyWest’s revenues became less predictable and more risky, even though the majors began to outsource routes to SkyWest. The bankruptcies also highlighted the risk within contracts with other airline companies. SkyWest had tried to partner with more major airlines; however those relationships have since ended. SkyWest…

    • 5493 Words
    • 22 Pages
    Powerful Essays
    Read More
  • Better Essays

    Southwest Airlines and Gary Kelly
    • 1375 Words
    • 6 Pages

    Southwest Airlines and Gary Kelly

    Southwest Airlines Company is a well-known low-cost American airline that offers excellent customer and employee service. As of 2009 Southwest is the largest airline company in the world that carries the most number of passengers and it is the third largest passenger fleet of aircraft among the world’s commercial airlines. It also boasts the highest number of customers than any other airlines in the United States. This data come from the U.S. Department of transportation’s Bureau of transportation Statistics. Given the above information, Southwest has been posting profits for the past 37 years [3]. The reason why Southwest has been able to cope with the changing economy and other issues is due to the company’s successful business model, which involves flying multiple short trips into secondary airport of major markets and also with how the company is corporately structured. One other factor that has helped Southwest be profitable is that it only uses one type of aircraft which is a Boeing 737[1].…

    • 1375 Words
    • 6 Pages
    Better Essays
    Read More
  • Better Essays

    Southwest Airlines External Analysis
    • 1286 Words
    • 6 Pages

    Southwest Airlines External Analysis

    This document will be using Porter’s Five Forces Model and a Political, Economic, Social, and Technological (PEST) analysis to conduct an external analysis on Southwest Airlines. Porter’s Five Forces can be used to review the competition within the industry and assess the competitiveness of the airline industry. Americans have preferred air transportation over anything else because it is time saving and cost-effective. Some countries use railroads to get around, but the United States is not efficient with trains and has become a very costly way to travel. Airlines have been competing with each other and most chose a certain path of pleasing customers. Some have chosen low fares while others try to win customers with luxury. No matter the path, Southwest Airlines has been successful in standing out from its competitors.…

    • 1286 Words
    • 6 Pages
    Better Essays
    Read More
  • Good Essays

    The U.S. Airline Industry
    • 1205 Words
    • 4 Pages

    The U.S. Airline Industry

    The U.S. airline industry provides a unique service to its customers. It transports people and goods with efficiency and convenience which is not achieved by any other service. The purpose of this article is to collect data on the U.S. airline industry and analyze the state of the industry today. Data came from sources such as the Federal Aviation Administration, scholarly articles, and websites such as dallas.culturemap.com and airwise.com. Tools used to analyze the data include P.E.S.T., and Porter’s five forces. The analysis also focuses on the industries’ drivers of change and its key survival factors.…

    • 1205 Words
    • 4 Pages
    Good Essays
    Read More
  • Better Essays

    Southwest Financial Analysis
    • 2611 Words
    • 11 Pages

    Southwest Financial Analysis

    Total Resource Network (TRN) congratulates Southwest Airlines for thirty-eight years of consecutive profitability. This is a major accomplishment that should be applauded especially during this economic recession and recovery period. Southwest’s success has been attributed to their core values and mission that begin with their employees and exceptional customer service. These two attributes along with low airfares have translated back into sound financial performances year after year. It would seem that Southwest is at a cruising altitude with so many multiple years of profitability. TRN understands that Southwest is always striving to elevate to a higher level with their employees, services, fares, and customers therefore an in depth financial analysis was conducted to evaluate Southwest’s financial health. The following financial ratios listed below, along with industry averages and Jet Blue financials, were utilized to gauge Southwest’s financial stability to champion your successes and review your challenges as opportunities.…

    • 2611 Words
    • 11 Pages
    Better Essays
    Read More
  • Powerful Essays

    Southwest Airline case study
    • 2348 Words
    • 10 Pages

    Southwest Airline case study

    For the purpose of this study we shall be taking southwest airline as a case study, Southwest Airline is a major U.S. airline that primarily provides short haul, high frequency, point- to point, low fare service. Southwest was incorporated in Texas and commenced operations on June 18, 1971 with three Boeing 737 aircraft…

    • 2348 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Good Essays

    Southwest Airlines Porter's 5 Forces
    • 793 Words
    • 4 Pages

    Southwest Airlines Porter's 5 Forces

    The Southwest Airlines can also remain competitive by fully utilizing its stronghold, financial stability. This concept can be achieved by expanding its territories margins to venture into new market segments, upgrading its facilities, as well as buying new airlines. Although these initiatives might be costly, but they guarantee the company’s competitiveness in the future as it introduces the company to bigger markets. These measures ensure the company retains their current established market shares and helps the airline in gaining new market shares as well. These strategies will also eliminate copycats and maintain the company’s uniqueness in the type of products and services it offers to its customers. Failure to adapt these recommendations will leave Southwest Airlines at the same sport and this will be an advantage for the competitors that will steal the airline’s strongholds and use it against themselves making the competitors more beneficial.…

    • 793 Words
    • 4 Pages
    Good Essays
    Read More
  • Better Essays

    Southwest Airlines Research Paper
    • 2358 Words
    • 10 Pages

    Southwest Airlines Research Paper

    Southwest Airlines was founded more than 36 years ago by Rollin King and Herb Kelleher who decided to create a different type of airline. Rollin King and Herb Kelleher started with the simple idea: “If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline” (SWA, August 2007, ¶ 1). This is an examination of what sets Southwest Airlines apart from the industry standard…

    • 2358 Words
    • 10 Pages
    Better Essays
    Read More
  • Better Essays

    Southwest Airlines: Leading the Airline Industry One Statistic at a Time
    • 1250 Words
    • 5 Pages

    Southwest Airlines: Leading the Airline Industry One Statistic at a Time

    Southwest Airlines is a company that has emerged from a small Texas Airline only serving three cities to one of the top ten most admired companies in the world and largest domestic carrier in terms of originating passengers. Southwest Airlines has proven to be the most efficient airline; which has allowed them to remain profitable for over 40 consecutive years. By taking a samples from previous years and from various markets, the statistics support that Southwest Airlines is the leader in the industry in terms of customer service complaints, on time arrivals, baggage handling, load factors and number of passengers carried.…

    • 1250 Words
    • 5 Pages
    Better Essays
    Read More

Related Topics