Swot Analysis Of Southwest Airlines
Executive Summary
Industry analysis
The airline industry is at the growth stage. The economic and technologic development are the main factors for airline industry growth. Also, the demand of customers drives the market growth. Economy globalization also has an impact on airline industry. The competitive rivalry within the industry is high. Southwest’s chief rivals are American Airlines, Delta Air Lines, United Airlines and US airway. Overall, the airline industry develops well.
Strategic issues
In order to decrease the cost, Southwest does not have a first-class section and not provide passengers with baggage transfer services to other carriers, which causes the inconvenience of customers. Besides, heavily advertising can increase company’s …show more content…
If southwest wants to expand international market, the company need to know the laws and regulations of its target countries so that it can operate effectively. Besides, Southwest severs in most part in the US, but not serves in some major cities. So Southwest should launch more services in these major cities. In addition, Southwest should have better compensation for frequent customer to keep customers’ loyalty. Southwest also should have a first-class section and provide passengers with baggage transfer services to other carriers. Besides, Southwest should decrease the advertising expense reasonably.
Implementable recommendation
1. Southwest should expand its international market.
2. Southwest should offer assigned seats and preferential treatment on frequent customers.
3. Southwest should provide passengers with baggage transfer services to other carriers.
4. Southwest should decrease the advertising expense reasonably.
Justification based on …show more content…
Market scale
The airline industry is in a relatively weak position because the character of airline industry is numerous sellers have very little differentiation in their products. While the development of economy and technology causes more demands of customers. So the passengers are increased.
3. Stage in life cycle
The airline industry is at the growth stage in life cycle. The airline industry is more dependent on the development od economy and technology.
4. Customers
Developing firm’s culture and advertising more will attract customers. Also, customer’s choices of travelling by plane are mostly because of convenience and safety. The size of customers is growing. Most airline companies attract customers by selling low fares.
Appendix B: Macroeconomic PESTEL Analysis
1. Political factors
Political changes will affect the development of airline industry. For example, because of the official deregulation of the airline industry in 1970s, Southwest decided to expand its operations outside of Texas. However, Congress passed the Wright Amendment so that Southwest’s flight capabilities were restricted.
2. Economic
Industry analysis
The airline industry is at the growth stage. The economic and technologic development are the main factors for airline industry growth. Also, the demand of customers drives the market growth. Economy globalization also has an impact on airline industry. The competitive rivalry within the industry is high. Southwest’s chief rivals are American Airlines, Delta Air Lines, United Airlines and US airway. Overall, the airline industry develops well.
Strategic issues
In order to decrease the cost, Southwest does not have a first-class section and not provide passengers with baggage transfer services to other carriers, which causes the inconvenience of customers. Besides, heavily advertising can increase company’s …show more content…
If southwest wants to expand international market, the company need to know the laws and regulations of its target countries so that it can operate effectively. Besides, Southwest severs in most part in the US, but not serves in some major cities. So Southwest should launch more services in these major cities. In addition, Southwest should have better compensation for frequent customer to keep customers’ loyalty. Southwest also should have a first-class section and provide passengers with baggage transfer services to other carriers. Besides, Southwest should decrease the advertising expense reasonably.
Implementable recommendation
1. Southwest should expand its international market.
2. Southwest should offer assigned seats and preferential treatment on frequent customers.
3. Southwest should provide passengers with baggage transfer services to other carriers.
4. Southwest should decrease the advertising expense reasonably.
Justification based on …show more content…
Market scale
The airline industry is in a relatively weak position because the character of airline industry is numerous sellers have very little differentiation in their products. While the development of economy and technology causes more demands of customers. So the passengers are increased.
3. Stage in life cycle
The airline industry is at the growth stage in life cycle. The airline industry is more dependent on the development od economy and technology.
4. Customers
Developing firm’s culture and advertising more will attract customers. Also, customer’s choices of travelling by plane are mostly because of convenience and safety. The size of customers is growing. Most airline companies attract customers by selling low fares.
Appendix B: Macroeconomic PESTEL Analysis
1. Political factors
Political changes will affect the development of airline industry. For example, because of the official deregulation of the airline industry in 1970s, Southwest decided to expand its operations outside of Texas. However, Congress passed the Wright Amendment so that Southwest’s flight capabilities were restricted.
2. Economic