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Southwest Airlines Eassy
Analysis of Southwest Airlines and the Airline Industry in the US
Patricia E. Vazquez

TABLE OF CONTENT
Abstract . . . . . . . . . 03
Introduction . . . . . . . . . 04 A Foundation of “Love Options” . . . . . 04
Southwest Airline’s Strategies . . . . . . 05
Southwest Airline’s Operations . . . . . . 06
Southwest Airline’s Performance . . . . . . 06
Southwest Airline’s Competitors . . . . . . 07
The Airline Industry in the US . . . . . 07 Rivalry, Magnify for Several Factors . . . . 09 Treat of Entry: Disappearing from the Radar Screen . . . 09 Substitutes: Cars, Buses or Trains? . . . . . 10 Supplier Power: Low, Moderate or High . . . . 10 The Variability of Buyer Power . . . . . 10
Southwest Airline’s SWOT Analysis . . . . . . 11 Southwest’s Internal Analysis: Flying High . . . . 11 Southwest’s External Analysis Flying Overseas . . . 12
Delta Airlines, Inc. SWOT Analysis . . . . . . 13
United Continental Holding, Inc. SWOT Analysis . . . . 14
Spirit Airline’s SWOT Analysis: Fly With Spirit . . . . 16
Conclusions . . . . . . . . . 17
References . . . . . . . . . 18
ABSTRACT
The Airline Industry has suffered intense competition since its deregulation in 1978 increasing rivalry in the players. Airline sector has to compete for low prices and product differentiation to attract customers and gain a sustainable profitability. The Airline Industry was analyzed through the Porter’s Five Forces to identify grade or rivalry, barriers to entry and exit, possible substitutes, supplier and buyer power. The purpose of this paper is to analyze how Southwest Airlines (Southwest) developed a sustainable profitability based on its different strategies. It also shows how it succeeds in the US Airline Industry and how it differentiates its service from its competitors. The analysis includes the Strengths, Weakness, Opportunities and Treats (SOWT) for Southwest and other


References: Airlines Industry Profile: United States. (2012). Airlines Industry Profile: United States, 1-35. Castro, R., & Ariño, M. A. (2011). The Multidimensional Nature of Sustained Competitive Advantage: Test at a United States Airline. International Journal Of Management, 28(1), 230-248. ACADEMIC JOURNAL DATAMONITOR: Southwest Airlines Co Delta Air Lines, Inc. SWOT Analysis. (2012). Delta Air Lines, Inc. SWOT Analysis, 1-10. Desai, K; Patel, V; & Quach, D; (2012, March 29) Southwest Airlines Kaushal Desai Vaishali Patel Debra Quach http://docsse.com/view.php?id=888717 Engauce, C, Hoffman, V Global Airlines: Industry Profile (2012). Airlines Industry Profile: Global, 1-34. Jackson, W. T., & Jackson, M. (2009). Southwest Airlines: The next Fight Begins. Journal Of The International Academy For Case Studies, 15(8), 59-70. ACADEMIC JOURNAL Lara C., (2012) Mertens, D. P., & Vowles, T. M. (2012). "Southwest Effect" - Decisions and Effects of Low Cost Carriers.Journal Of Behavioral & Applied Management, 14(1), 53-69. ACADEMIC JOURNAL Muduli, A., & Kaura, V Pearson, S.D., & Romero, E. J. (2003). Strategic Group Performance in the Commercial Airline Industry. Journal Of Management Research (09725814), 3(2), 53-60. ACADEMIC JOURNAL. Peter, J.P., & Donnelly, J.H. (2013). Marketing Management: Knowledge and Skills. Eleven Edition. New York, NY: The McGraw-Hill Companies. Ramamurti, R., & Sarathy, R. (1997). Deregulation and Globalization of Airlines. International Trade Journal, 11(3), 389-432. ACADEMIC JOURNAL Southwest Airlines Co US Airlines Industry (2011, September 1). US Airlines Industry – Porter’s Five Forces Strategy Analysis. Aruvian 's R 'search. Retrieved from http://www.marketresearch.com/Aruvian- s-R-search-v3456/Airlines-Porter-Forces-Strategy-6506546/ | | |
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