Swot Analysis: SWOT Analysis Of Southwest Airlines

1024 Words5 Pages
SWOT Analysis
Southwest Airlines has been a strong growing company over the last 4 decades. Using its low-cost, no-frill, customer friendly, point-to-point operational strategy, Southwest has been able to sustain considerable growth over the years and reported straight profits since its inception. Southwest Airlines now has a market capitalization of $9.1 billion and is positioned as one of the strongest airlines in the struggling airlines industry. Over the last decade, many airlines have reported record losses in the US while many have filed for bankruptcy. However, Southwest has been able to remain profitable and continued to grow. However, with the airline reaching its maturity, it remains to see whether this growth can be sustained for the upcoming years. This external and internal analysis is aimed to guide the strategic management of company in understanding the environment its business operates in, and how it can respond to that environment by realizing its internal resources.
An evaluation of the internal strengths and weaknesses, and the external opportunities and threats is as follows:
STRENGTHS
1. Successfully adopted a cost leadership strategy.
The company follows the policy of no baggage
…show more content…
The result is a loyal employee base that is willing to work hard to achieve the company's goals. Culture begins with strong leadership. CEO Herb Kelleher is known for his relaxed management style. Southwest was voted one of the "100 Best Companies to Work For in America" by Fortune magazine. Southwest implemented programs to retain employees, including the first profit sharing plan in the industry and a 401k plan that matches contributions dollar for dollar. Although 84% of the workforce is unionized, they share responsibilities (e.g., pilots handling baggage) and have flexible work schedules. Southwest shares information with all levels of employees so that they understand the company's

More about Swot Analysis: SWOT Analysis Of Southwest Airlines

Get Access