Southwest Airlines Swot Analysis Paper

Southwest Airlines Co., established in 1971 by Rollin King and Herb Kelleher, began its operations with only three Boeing 737 aircrafts. It is headquartered in Dallas, Texas(Hawkins, Misra, & Tang, 2012). Southwest is well known as one of the largest low-cost carriers. With this strategy, the company has dramatically grown up and deeply rooted in the US airline industry. Now, Southwest Airlines Co. operates 633 aircrafts to 93 domestic cities and the highest number of passengers used Southwest Airlines to fly around U.S in Jan 2014 (Hawkins, Misra, & Tang, 2012). To accomplish more than 40th consecutive years of both profitability and competitiveness, Southwest Airlines Company is constantly trying to find the routes to differentiate itself from other domestic carriers (Hawkins, Misra, & Tang, 2012).

Bargaining Power of Customers (high)- Customers has several options when it comes to flying. But the main attraction to customers are low prices and Southwest makes it known that they have some of the lowest airfares. The only way Southwest can take back the power is by offering direct flights to cities that other airliners do not offer. Besides the small occurrence of having a direct flight to a city that no other airline has, Southwest

Southwest Airlines Co. is an airline company that offers air transportation services within the United States and in international markets. The company operates within the airline industry that is highly regulated, technology intensive, labor intensive, and highly competitive (Southwest Airlines, 2017). Southwest Airlines operates a service business whereby the company offers a point to point air transport service to its passengers. Other than passenger transport, the company offers transportation services for pets and unaccompanied minors. The flights offered include short haul and long haul between various destinations within the United States and internationally. In 2016, the company’s operating revenues from international operations amounted to $383 million. A unique feature of the Southwest Airlines is its cost structure whereby the company focuses on cost discipline and uses one aircraft type to minimize costs.

Southwest Airlines is a major US airline established in 1967 that services a multitude of cities in all 50 states and beyond. The company is known for its outstanding quality in providing services and it 's cost effective ticket prices to its many passengers throughout the nation. This airline is based in the southwestern United States, in the city of Dallas Texas, and due to the tremendous number of airplanes that it has and the timely service that it provides to its passengers, this airline services more US passengers than any other airline. This airline also has the largest fleet of planes of any economical or low-cost airline service in the world and employees more than 45,000.

Southwest Airlines original name was Air Southwest in 1967 in Dallas, Texas, before the change of the name to Southwest Airlines in 1971. They were faced with battles due to legal issues with Dallas and Love field, because of the Wright Amendment, but the come to an agreement to allow 4 states to connect to Texas. Southwest bought 129 new planes, because of the expansion of the company growth, which currently have 141 planes that enhance the growth of the company because of shorter flights (Gimbel, 2005). Southwest was started in 1971, by Rollin King and Herb Kelleher, which released it first flight from Dallas Love Field that is located in Houston and San Antonio Texas. The passengers look for an airline services that can get them to their destination at a cheap price. Majority of the passenger are looking for an airline service that will eliminate layovers and multiple stops as possible.

Entrepreneur Robert Deluce introduced Porter Airlines in 2006 aiming to create a higher value experience for its customers compared to other major players and competitors in the Canadian airline industry such as Air Canada and West Jet. The brand image is designed to provide upscale and refined service to its customers, giving the sense of traveling in first class with free amenities that competitors provide at very high prices such as meals, beverages, wine, etc.

Southwest Airlines has recently acquired AirTran Airways, which was a global company, this acquisition it put Southwest in a great spot to expand to the global market. Southwest is integrating the AirTran Airways international stops in Aruba, Jamaica, the Bahamas with their original domestic stops in Atlanta, Baltimore, and Orlando starting July 1st 2014 according to an article in US Today. Next they are looking to service 6 Latin American destinations including Belize City, Cancun, Mexico City, Puerto Vallarta, and San Jose del Cabo/ Los Cabos starting in October 2015 (Zacks Equity Research, 1-2). These Latin American destinations are strategic because they are close to Southwest’s headquarters in Dallas TX, and they are prime vacation spots (Jones, 3). This will give more people a cheaper way to vacation, and bring more people into these

Southwest Airlines Co. began its operations in 1971 and has been serving the industry for the past 43 years now (Southwest Airlines, n.d.). It is the major domestic airline, and ranked number one in 2014 by the Bureau of Transportation Statistics (United States Department of Transportation, 2014). Back in 1971 the airline began its services in Texas in the cities of Houston, San Antonio, and Dallas. The company has been ranked as the nation's largest low cost carrier (Mergent, 2012). It offers the lowest fares, and has the lowest cost structure in the industry.

* Government. The government is a weakness if they change or update some of the regulations that are in place now. This could cause delays and plans to change and take more time between flights.

While Southwest Airlines has increased their global distribution system network in recent years, there are still areas

On October, 2016 Southwest Airline has scheduled flights to 98 destinations in 41 states, Puerto Rico, Mexico, Central American and the Caribbean. Southwest has done an “A” rated job of implementing and following the initial company strategy, and a phenomenal job of growing and sustaining through highly competitive market demands.

To formulate a strategy that will help Southwest Airlines maintain its competitive edge in the US airline industry.

Currently, Southwest does not serve any destinations outside the United States, but it is planning to begin international services or ticket international flights in 2009 (Wikipedia, 2008). The company has established a code sharing partnership with just a single airline on the USA market – ATA Airlines, and the plans of international expansion were partially based on this partnership. However, in March 2008, ATA Airlines declared bankruptcy and filed for Chapter 11 protection after it lost a key military charter contract in the middle of skyrocketing fuel prices, leaving Southwest Airlines alone (Dance, 2008).

US Airways completed a merger in December 2013 . This merger provided much needed cash infusion into American Airlines, enabling it to emergency from

Southwest Airlines Company (Southwest Airlines or ‘the Company’ SWA) is a passenger airline that provides scheduled passenger and freight transportation services. The Company primarily provides scheduled services throughout the US and near-international markets. It is headquartered in Dallas, Texas and employs 48,000 people and serves over one hundred million customers annually (“Southwest,” 2015). Southwest Airlines has accumulated over forty years of revenue and is one of the supremely flown airlines in the United States of America (Dess, et al, 2014, p. C137). Recognized for dominating the national or domestic airline market, Southwest Airlines’ diligence has built an