Southwest Airlines

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Identify Current Strategy
Southwest Airlines Co. is a major domestic air carrier that is "the world 's only short-haul, high-frequency, low-fare, point-to-point carrier" according to the President and CEO Herb Kelleher. Southwest has always been able to quickly seize any strategic opportunities whenever they arise. Southwest is the only company to ever hold the Triple Crown for annual performance. Some of the key factors that contribute to Southwest 's success are its conservative growth pattern, cost-containment policy and the commitment of its employees. Southwest has made its mark by concentrating on flying large numbers of passengers on high frequency, short hops at bargain fares. Southwest flies out of smaller satellite fields rather
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The increase in Internet usage is key as they are heavily marketing themselves on the Internet. Competition is another factor as it is both positive and negative, as it is the fuel to which makes Southwest a growing company while they thrive off of competition. It makes the employees closer as well as makes the company stronger. Competition of course also hurts revenue, as the major airlines that offer more services with competitive rates are taking away Southwest 's customers. Negative factors include mostly competition as stated before as well as the economy going down. Fear of flying is another factor as people look towards other ways of travel rather then flying. Tax requirements are another key factor as the new tax system replaces a percentage tax with a tax that includes a flat, per-segment fee that hits low-fare carriers harder such as Southwest.
Perform Internal Audit Positive factors that are within the company are that they have low costs, as they are very thrifty in their operations. The fact they use the same airplane being the Boeing 737, helps lower costs dramatically. They are the least expensive airline in the market, as larger carriers cannot match the offers on fares that they are selling at. Southwest 's belief that employees come first as the employee retention policy has contributed to employees of Southwest feeling a great sense of loyalty to the company as

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