Business SWOT Analysis
Abstract
As a mutual fund manager, I have decided to conduct some research on Southwest Airlines. I will provide an overview of the company’s history, and an analysis of their strengths, weaknesses, opportunities, and threats (SWOT). While there wasn’t any rhyme or reasoning behind my selection, I do feel that Southwest Airlines is one of the leading airlines in the United States. Conducting a SWOT analysis will help me understand what the company’s strengths and weaknesses, identify their opportunities and become aware of their threats. I will also determine the company’s internal and external stakeholders, and their needs. From my research I will decide whether I should invest in this company.
History of
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Also included in their opportunities are implementing international flights, spreading out to other cities. There’s always an opportunity for continuous improvement to customer satisfaction. Southwest Airlines could also expand their services to include seating for business and first- class. The airline could also consider including larger planes to the fleet of air craft; this would
increase seating and air travel to allow for longer designations.
Threats of Southwest Airlines
Threats are harmful situations, events or conditions present in the environment of the organization. Some threats for Southwest would include if the economy was to go into a recession, air travel would certainly decrease. Another threat could be increase in fuel price if there was a reduction in travel. Competition is most certainly a threat. Southwest competes with other airlines on several things, to name a few I would say customer service, frequent flyer programs, and prices. There is also the threat of terrorist attacks.
Southwest’s Internal Stakeholders
Stakeholders are mainly people that have an interest in the company. Stakeholders ensure that resources are available to contribute to a company’s success. Internal stakeholders would be the CEO, upper management/team managers, and employees, and volunteers. The CEO expects its staff to be concern, respectful, have a caring attitude and extend the best customer
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
A stakeholder is anyone with an interest in a business. Stakeholders are individuals, groups or organisations that are affected by the activity of the business. There are two different types of stakeholders; internal and external. Internal stakeholders are groups within the business e.g owner/workers and employees. External stakeholders are local and national communities and governments, these are groups outside of the business.
A stakeholder is a person or a group of individual who are interested in the success of a business in delivering successful results and maintaining the activity of the businesses products and services. There are internal and external stakeholders in every company. An internal stakeholder is someone who is internally connected to the business that have personal interests which they may follow. An external stakeholder can be a person or a group of people such as investors, customers, suppliers, people who are predisposed by the business but are not fully in the business.
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.
It would bring in more customers and the customers that have flown before will probably fly again. Employees love spending time on the airplane talking to the customers. Customers like employees who make them feel safe or a person who is fun to talk to. Capacity is another thing that will affect the company. Even though there are more people coming in, Southwest Airlines will have to have more plane to transport people. If they do not, things will fall down. Second, it is the time management; because if the company is slow, they would go to another airplane company. Some companies take forever to get their flyers abroad. They get all of their flyers abroad quicker than some others even though Southwest Airlines is a larger company. Southwest Airlines either avoid canceling people tickets besides the weather or they change tickets to another flight quicker. When people accidently put the wrong place, Southwest Airlines can change it quickly unlike some other
Stakeholders are those individuals who may be affected or have an effect in an organizations depending on the decisions that may have been made. One of the most important reason for identifying and understanding shareholders is that it allows the organization to recruit them as part of the effort in anything there are involved in. participatory effort and representation of as many stakeholders as possible ranging from internal to external has possible advantage. Internal stakeholder is a groups within an organization who work directly within the organization, such as employees, owners, and investors. In the other case external stakeholders
An organisation has external stakeholders and internal stakeholders. External stakeholders are individuals or groups outside the business who are linked to the organisation in some way but not directly these can be customers, shareholders, society, suppliers and the government. On the other hand are Internal Stakeholders, these stakeholders are individuals or groups who work directly inside the business. These are the employees, managers and owners of the company.
There are two types of stakeholders- internal and external. Internal stakeholders mean the business/organisation that runs the activities, for example – managers, employers, supervisors etc. On the other hand, external stakeholder means when the business/organisation depends on external factors that can affect the businesses’ decisions: for example- customers, suppliers and the government.
Southwest Airlines is globalizing their company in order to reach a bigger market, and become competition for other companies. Southwest Airlines has already conquered the domestic market beating American Airlines, United, and Delta according to Fortune. Access to a new market is what motivated Southwest to globalize, they are expanding to the south of North America, with their new assets found in their acquired airline AirTran Airways (LeBeau, 4) . Southwest Airlines has brought low rates and a great experience to the domestic market, which was warmly received, they now plan to dip into global market to bring better service to all.
Internal Stakeholders are board members, staff, and volunteers. External stakeholders are individuals such as clients, and partners in the community. The University lost their top officials, which had an impact on them financially.
Southwest Airline employees mainly belong to the Union and they are mainly full time workers. Since the Union has demand more services and benefits for their members, the company gain limited profit. To fix this the company should hire more part time workers instead of full time workers because they do not have to provide full benefits and instead focusing on gaining profit. And also, Southwest Airlines should make all flights within the states point-to-point flights, and give their employees a strict time lines to alleviate delays. This will keep an accurate time frame for customers. As far as the flight concerns, Southwest Airline has only one dependable
Internal Stakeholders are individuals or groups who work inside an organisation or project, and external Stakeholders are individual or group who depends on an organisation to fulfil their own goals and on whom, in turn, the organisation depends are called stakeholders. Below shows a diagram of how it is set up.
This proposal addresses the needed steps to be taken in order for Southwest Airlines to see continued growth in the airline industry. Southwest Airlines has been able to remain one of the most profitable airlines in the industry for an extended period of time. Even with the hindrance of the 2001 terrorist attacks involving airplanes and the U.S recession of 2008, Southwest has continued to see strong revenue growth. Meanwhile, other companies were experiencing major losses and in some cases folding. Southwest Airlines has capitalized on the company’s strength of being the top low cost
A company’s stakeholders are all those who are influenced by and can influence a company’s decisions and action, both locally and globally. Business stakeholders include(but are not limited to) employees, suppliers, customer, community organizations, subsidiaries and affiliates, joint venture partners, local neighborhoods, investors, shareholders(or a sole owner in case it is sole
Southwest Airlines main product is to provide low cost air travel to passengers that are traveling on business and those that are leisure travelers. This airline focuses on making their customers travel experience