Low-Cost Strategies And Swot Analysis: SWOT Analysis Of Pacific Southwest Airlines
b) Low-Cost Operations Economy Class: In order to maintain the low-cost strategy, Southwest is focusing on the Economy Class passengers to get more travelers. Furthermore, the seat space has also been narrowed down to put more seats in the plane cabin.
c) Work Environment Love, Care and Fun: Southwest Airlines believe in the fact that the organization should have open, enjoyable environment. Employee productivity depends on their peace of mind during working hours. Southwest Airlines allow their employees to have fun and entertainment during working hours and the employees are not bound to any hard and fast restricted rules. And this results in a good productivity. Furthermore, to promote this corporate culture of fun and love, the Southwest is also listed on the New York Stock Exchange as “LUV”. A blog titled “The Nuts about Southwest” is also launched to create a personal love and fun relationship between the company bloggers and the readers. …show more content…
Specially, in recession in the economy, Southwest produced a profitable year. As mentioned above in the Income Statement, Southwest keeps on generating income for last years. Their performance has been outstanding in the air travel industry. The customers of Southwest are almost 100% satisfied with their product, quality and service. They have been top rated in performance ranking and they also achieved lowest ratio of customer’s complaints. The environment provided by the Southwest Airlines to their Employees is very loving and enjoyable. Their employees are highly motivated and the love to serve the customers with their personal care. Apart from the successful story, there are some negative aspects of Southwest Airlines which affect their business. A very important and may be harmful for Southwest is the dependability on single producer of their Boeing 737 Aircraft. This bounds them to stick with one piece of source to run the business. Furthermore, the low-price strategy sometimes becomes disadvantage for them when it comes to be selected by the customers who are willing to pay high rates and believing low quality in low rates. Similarly, the processing within the United States also bounds them to capture the market exists beyond the national boundaries. There is a good opportunity to enter into a new market where the number of customers will increase dramatically. Despite the low prices, Southwest has been achieved constant incomes but they are always threatened by fuel prices and other economic conditions. In a nut shell, Southwest is the champ of various fields in the industry but at the same time they are lacking with some required strategic action that needs to be taken as soon as possible so that they can maintain the same performance later