Swot Analysis : Southwest Airlines

1895 Words May 23rd, 2016 8 Pages
Introduction
Our objective is to utilize the PESTEL-Analysis to evaluate SW (Southwest Airlines) to gain an insight into its areas of opportunity, and how it has realized those core factors affecting its business dynamics. PESTEL-Analysis, is an apparatus used to examine and monitor macro economical external environmental factors that impact a business. The PESTEL analysis will provide us with the key drivers of success and deliver us the ability to harness the unrealized.
Southwest Airlines is a major passenger airline that provides scheduled air transportation in the United States and near international markets. For the 43rd consecutive year, the Company was profitable, earning $2.2 billion in net income (10K part 1 2015). SW started its service in 1971 with three Boeing 737 and as of 2015 has a total of 704 Boeing aircrafts. The company as of 2015 services 97 destinations in 40 states, including seven near continental destinations. SW principally provides a point-to-point service rather than the hub-and-spoke service provided by most other airlines. Southwest Airlines is a high-frequency, short nonstop hauler; this is its diversification asset in the industry. The key component of its strategy has always been its low-cost structure. Moving forward the PESTEL-Analysis will be engaged to provide illumination into what makes SW a 43 times winner.
Political
Government intervention is imperative in the airline industry to ensure passenger safety and security. Airlines…

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