SOUTHWEST AIRLINES STRATEGIC MANAGEMENT CASE STUDY Essay

7714 Words May 15th, 2014 31 Pages
STRATEGIC MANAGEMENT
CASE STUDY

SOUTHWEST AIRLINES

SÜLEYMAN SİNAN ÖZTÜRK

EBS 5103
STRATEGIC MANAGEMENT
INSTRUCTOR: DR. AHMET BEŞKESE

BAHÇEŞEHİR UNIVERSITY
May 2013

Contents
CONTENTS ................................................................................................................................... 2
INTRODUCTION: ......................................................................................................................... 3
THE HISTORY: .............................................................................................................................. 3
CASE ANALYSIS: PESTEL FRAMEWORK................................................................................. 5
CASE
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It is a challenge for the company which requires an integration of the departments to achieve a synergetic success.
This has brought the question of “What strategy SWA should follow in order to sustain the leader position in the airline industry?”

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Strategic Management Case Study: Southwest Airlines

CASE ANALYSIS: PESTEL FRAMEWORK
First the environmental influence of the factors for SWA will be analyzed with PESTEL framework.
Then I will monitor the environmental events. Finally, I will give a predictable forecasting of such events. Political: Early in the establishment of the company, the firm had to fight with a legislation that bans the existence of SWA out of Dallas Love Field instead of having the operations in a new airport which was Dallas-Forth Worth. The company has to lobby to the House of the
Representative to change their decisions.
Economic: The economical stability of the country is very crucial for the persistence of the company. When the economics of the country is stable, then the life cycle of the firm is longer.
The value of the interest rates determines the investment strategy. The growing economics always bring new investments to the market. Nevertheless, each city within the country does not grow equally but rather disproportionately. Some cities have higher economic growth with higher GDP trends which creates a potential demand. The company chose to supply the demand of such attractive cities and

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