Analysis of Southwest Airlines

2934 WordsDec 10, 201012 Pages
Analysis of Southwest Airlines Module: Business Management Vanessa Eelma Alyssa Julianna Farkas Thomas Schillinger Peter Lukacs Attila Radvanszki Adam Radvanszki 29th November, 2010 Word Count : XXXX Contents 1. Introduction 3 2. Literature Review 4 2.1 General Introduction of Theories Used 4 2.2 SWOT Analysis 4 2.3 External Factors 4 2.4 Organizational Structures 4 2.5 Hofstede’s Theory 5 2.6 Cultural Elements 5 2.7 Motivation 5 3 Analysis of Southwest Airlines 5 3.1 Industry 5 3.2 Company’s Overview 6 3.3 SWOT Analysis 7 3.4 External Analysis 8 3.5 Organizational Structure 8 3.6 Hofstede’s Theory 9 3.7 Organizational Culture 9 3.8 Motivation 10 4. Conclusion and…show more content…
2 Analysis of Southwest Airlines 3.8 Industry The recent economical and financial downturn severely impacted the airline industry in 2009 and brought only small increases in 2010. The recession negatively influenced the discretional income of travellers. More precisely, the leisure travellers’ and business travellers’ budget changes resulted with a sudden decrease in their demand. Therefore, corporate policies tightened and generally the demand for travelling decreased. On the other hand, demand for substitute products, such as video conferences and surface travel, has increased. As a result, many airlines, including Southwest Airlines, responded with capacity cuts and fare discounting. On the other hand, Southwest used the opportunity also to further expand and because of its low-fare services, it could enter new markets as well. 3.9 Company’s Overview Southwest Airlines is described on the NASDAQ profile as “a major passenger airline that provides scheduled air transportation in the US”. The company primarily serves short-haul routes, but over the recent years they have expanded their services to medium and long-haul routes as well. Their unique feature is that it only operates with Boeing 737 as it is a domestic low cost carrier company and it was necessary to have aircrafts that are easy to maintain and repair. If a company only uses one type of aircraft, the technical issues are

More about Analysis of Southwest Airlines

Open Document