Swot Analysis : Southwest Airlines

1285 Words Feb 23rd, 2016 6 Pages
The safest way to travel in the United States are through U.S. commercial airplanes. There are only .06 deaths per billion miles, which is tremendously better than cars and motorcycles who’s are 5.67 and 217 per billion miles (CNN 2015). Southwest Airlines is one of the major airlines in the US and the one of the world 's largest low-cost carrier. The airline was created by Herb Kelleher in 1967, their headquarters are in Dallas, Texas. This paper will reflect and analyze the current situation of Southwest and the rest of the airline business by using the PESTEL analysis, value chain analysis, and the ROS, which will compare them to their competitors such as Jet Blue, Delta, and American airlines. In analyzing the airline industry, the first framework to use is the PESTEL analysis, which assesses the strategic relevance of the six principal components. Only a few of the components are a deciding factor in the airline industry of which are the Political, Economical, and Technological. First, the political factor, the airline operated in a highly regulated political environment where the passengers are favored (Makos 2015). There are many regulations to restrict airlines in order to prevent them one business in becoming a monopoly of the industry, which is why the Federal Aviation Administration (FAA) was created (FAA 2015). Another factor is the economic factor, airlines are affected with anything happening in the economy since it is a huge network. “The prolonged…
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