SWOT Analysis For Southwest Airlines

Decent Essays
Name: Michaela Quinn

Assignment 4
SWOT Analysis for Southwest Airlines
Instructions: Do some research about Southwest Airlines on the Internet. Identify as many strengths, weaknesses, opportunities, and threats as you can. Remember: strengths and weaknesses are internal to the company and opportunities and threats come from outside the company. Use the quadrants below to complete your SWOT analysis. After you enter the first strength, press Enter to display the number 2. The cells will expand deeper as you type your answers. Remember: I want full explanations and you should try to list 3-4 of each type—no one word answers.

Strengths Weaknesses
1. Southwest Airlines carries out over 3,300 flights per day.
2. Great customer service with Southwest
…show more content…
There is a strong demand for Southwest Airlines. With an increase of 8% in passenger growth, it has become the largest gain of any airline.
5. With over 42 years of profitability, and a track record unlike any airline, Southwest has never seen a layoff or furlough. They have been a mainstay on the Fortune magazine as the most admired company in the world.
6. Their employees pour their heart and soul into the company, and is the reason this company is so profitable.
7. They have the best low fare, and first class service.
8. By the use of the internet and a great marketing team, sales have increased over 22%.
9. It has been reported that Southwest Airlines has the highest load of passengers every day they are in operation. 1. The increased overhead is due to the highest percentage of employees.
2. Currently, the only airplanes that Southwest fly’s is the Boeing 737. Some analyst are saying that could spell disaster if there was ever a major problem with that class of aircraft. Their fleet consist of 547 aircraft.
3. Most airlines offer their customers First Class seating. Southwest Airlines does not offer that service.
4. Most airlines offer complete meals on long flights. Southwest Airlines does not offer
…show more content…
CAPA did a recent study, and found a number of airports here in the United States are currently underserved by foreign airlines. Southwest airlines mainly operates domestic service only.
5. As the United States continues to recover from the recession, airline traffic should increase by 3.5% thru 2019.
6. A poll was taken, and the average traveler said they would be willing to pay up to $21 for a meal on flight. Most airlines offer meals on a flight. 1. With airlines such as Spirit, and Frontier, Southwest is no longer the airline with the lowest fare. In 2013 Southwest was reported with an increase of 7% in fares. Analyst are now saying it was due to the demand in the US market place. At any point the airline needs to maintain their fares to manage the cost of operation.
2. Currently Southwest has been in numerous labor negotiations. It has been predicted there will be an increase in the fare rates.
3. In Chicago during the winter months, the ramp employees became ill. This created a skeleton crew which effected the daily operations. The Union became involved and sued Southwest, because Southwest did not believe that the employees were sick and demanded proof. Management seems to be a problem

Related Documents

  • Improved Essays

    The strategy for the company has helped make Southwest one of the biggest airlines. Southwest Airlines had a net income in 2013 of $754 million and total operating revenue were a record in 2013 of $17.7 billion. (Southwest Airlines Co., 2013). The company has worked on cost control and the stable fuel prices to achieve their annual goal for cost performance. Southwest Airlines had a total asset of $19,345 million in 2013 and Delta had $52,252 million.…

    • 1939 Words
    • 8 Pages
    Improved Essays
  • Improved Essays

    In 2014, airliners paid $223.6 billion on aviation fuel alone (Cros, 2015). The small fluctuation in the price of oil can have a dramatic impact on firms’ margins. An increase of one percent in jet fuel prices translates to $530 million for the US airline industry (Baazargan, Lange, Tran, & Zhou, 2013, p. 55). Many airliners are actively trying to mitigate this unpredictability. Many carriers are now employing hedging strategies (Yu-Hern & Pei-Chi, 2011, p. 10405).…

    • 787 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    As the projection predicts, 43% of the demand is to update aged, low-efficient aircraft. As for geography distribution, around 39% of the total commercial demand is likely to come from the Asian (include China), 21% from North America, 18% from Europe and the balance from the rest of the world. Single-aisle jets (i.e. 737, Boeing’s best seller) is expected to be the major engine backing up the growth, 72% of total projection, which means 29,350 jets worth $3.2 trillion in the future 20 years. Such expectation is mainly based on the global preference to economical airline flight and the expansion of emerging markets, whose requirement is comparable to the replacement of aged airplanes.…

    • 760 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Changi Airport Case Study

    • 1627 Words
    • 7 Pages

    This was the highest number of passenger movements achieved in a financial year since the airport’s opening in 1981. Changi Airport maintained its position as the world’s sixth busiest airport for international traffic, with aircraft movements rising 3.2% to reach 362,246 flights.…

    • 1627 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    Easyjet Case Study

    • 925 Words
    • 4 Pages

    More than 80% of Flybe's routes are on sectors of less than 350 miles (565 km). Europe has more seats flown below this sector length threshold than any other region of the world. This provides airlines such as Flybe with the opportunity for future growth. The UK regional domestic market (ie excluding London) is Flybe's most important segment. In the 12 months to Oct-2014, it had a passenger share of 48% in this market, ahead of second ranked easyJet with 31% (according to data presented by Flybe at its Capital Markets…

    • 925 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The Aviation Crisis

    • 759 Words
    • 4 Pages

    Los Angeles Times reported in December of 1974 that the largest airline in the nation, United Airlines, suffered a $5.26 million loss in November due to a decrease in Thanksgiving travel and a 55% increase in fuel cost (from $212 million in 1973 to $324 million in 1974). A 1975 New York Times article showed that other major airlines also saw over $70…

    • 759 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Ryanairs Financial Performance By Sean Trosper July 16, 2016 Southeastern Oklahoma State University AVIA 5213, AVIA ECON & FISCOL CTR Ryanair’s Financial Performance Ryanair is the definitive example of why the low cost, “no frills” airline business philosophy is booming in an ever slowing global economy. After suffering a rare dip in profit margin in 2014, Ryanair is now boasting a 66% boost in 2015, raising their net profit totals over the 1 million euro mark. This is an accomplishment that puts them in the same ranks as major airliners such as International Airlines Group (IAG) and Lufthansa. In addition, financial experts predict another 10% growth for the discount airliner in 2016. Ryanair is indeed living up to their “Always Getting Better” mantra.…

    • 731 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    American Airlines are largest airline in the entire world according to it’s revenue, fleet size, and number of passengers, and it’s second in the number of destinations that they travel to around the world (Tracy). American airlines offer an average of 6,700 flights daily to about 360 locations around the world and in about 50 different countries (American Airlines Group). This is a huge competitive advantage over Southwest since they only have ninety-seven locations in the United states and seven other ports in other countries (Southwest Corporate: Fact Sheet). The website Vault rated American Airlines as they number…

    • 1063 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Southwest Airlines is the “fourth-biggest US carrier in the terms of passenger traffic; with more than 50,000 employees to move more than 100 million customers annually, with more than 3,900 flights a day, serving 98 destinations across the United States and seven additional countries (Southwest Airlines, 2016). Southwest Airlines reported in 2015 a record net profit of $2.2 billion in 2015 on the back of $19.8 billion in operating revenue” (Ghim-Lay, 2016). Southwest CEO Gary Kelly strives to balance three important areas of focus for the company: low cost, customer service and a focus on people (Mueler, 2009), this method has become the basis for the company’s policies, procedures, operating practices and core…

    • 779 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Current Situation The airline industry is an intense and highly competitive market. Everyday millions of consumers travel and each airline both national and international compete for sales revenue, in fact, each airline has developed and evolved to sustain in this volatile industry. For Southwest Airline to capitalize in this market and steadily maintain their sales, they have procured a niche market. The company has positioned itself as a low fare cost leader in air transportation service. On June 18, 1971, the airline delivered a short-haul, point-to-point, low-fare, high-frequency airline committed to exceptional customer service, (Kerin & Perterson, 2011).…

    • 584 Words
    • 3 Pages
    Improved Essays

Related Topics