Swot Analysis : Southwest Airlines

1900 Words Jul 10th, 2015 8 Pages
In 1971 Southwest Airlines started their operations with a vision of being a low cost/low fare carrier for passengers traveling between San Antonio, Dallas and Houston. After early legal battles and struggles gaining market share, their fighting spirit, integrity and will to succeed paid off. Over the course of the next 40+ years, Southwest has become the world’s largest low-cost carrier, while carrying more domestic passengers that any other U.S. airline (“Southwest Corporate,” 2015). Their culture, values and operating practices are what have driven this company to its current success and should continue to do so in the foreseeable future. First of all, Southwest’s strengths lie in their point to point strategy (not being pinned to a hub), dominant market position (most domestic passengers), strong customer service year after year and their iconic brand as a low cost carrier. One of their immediately noticeable weaknesses includes nominal revenue opportunities, as they are not jumping on the ancillary revenue bandwagon (baggage fees, seat allocation, airport lounges, etc…) which can grow revenue in both the medium and long term. Yet, their rivals are recording large revenues from these “extras”. Its product can also be considered outdated when there are no offerings of first class, extended legroom, business flights, etc. Another disadvantage includes their dependence on a single airplane producer…Boeing. The greatest opportunity I see for Southwest is their…
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