Southwest Airlines : An Industry Leader Of Low Fare Air Transportation

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Southwest Airlines has proven itself as an industry leader in low-fare air transportation. Southwest serves 64 airports in multiple states across the country. Although the airline industry suffered a major blow from instances such as the Airline Deregulation Act and the multiple economic crisis’s, Southwest remains strong, while competitors of Southwest were suffering from problems such as bankruptcy. One of the major reasons Southwest was able to remain successful seemed to be due to their effective low-cost model that has been key to their business image. Another aspect that aided Southwest was the fact that their competitors were fully aware that they could not compete on a price level with Southwest. Southwest gave itself a reputation…show more content…
When you look at the five forces none of them seem very friendly. Both the buyers and the suppliers have power in the industry, which means bad news for the industry. Buyers not only have power, but also have many substitute options that they can use compared to only flying. The other substitute options that they have are taking a train, boat, or bus. Another issues that there is in the airline industry is that it is very difficult to enter. High entry costs can deter companies from entering the industry. If you’re able to establish your company in the airline industry it’s hard to differentiate yourself. The only real way that you can differentiate yourself is with the different routes that your company can take. However, no matter what different routes that your company can offer, there is always a substitute available for the buyer.
Even though the airline industry is a one star industry, Southwest has found multiple ways to become very successful and stand out as an industry leader. Southwest has many opportunities to improve their business. Its greatest opportunity is to continue to develop its low cost business plan. It must continue to push for maintaining low-cost flying and brand association that has served Southwest very well in recent years. Southwest has always
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