SOUTHWEST AIRLINES CASE ANALYSIS ESSAY
Challenges in the 21st Century. SWA operates and serves 68destinations within 35states. Southwest Airlines plans to cut expenses without layoffs Airlines and Aviation Dalla.. Southwest airlines have an opportunity to venture into international market airlines directly. Customer satisfaction within the industry has also been achieved driven by the firm’s mission statement, as indicated by the transportation department is the U. They began with one simple notion: Southwest has to respond effectively to these unexpected developments and has to act accordingly while maintaining their current low fare image and increasing their daily operating profits.
As it can be easily seen, the best alternative is the third one, once it is going to provide the highest total daily operating profit to Southwest. Another weakness of Southwest Airlines is the fact that it currently serves only few states in the US, mostly in the South. He always encouraged his staffers in performing their duties. Moreover, the company has used technologies in its favor to sustain efficiency in its business operations. This could be a good strategic fit for its popular destinations.
They chose to purchase instead of rent to improve cash reserves and have less debt to total capitalization compared to other airlines to stay competitive. Kelleher and Parker were considered to think much alike. Nevertheless, even though in the past the situation has facilitated fuel costs balancing, it’s never a guarantee that this southwest airlines case analysis essay always be the case.
Southwest Airlines :: Case Study
KMacroenvironmental Analysis for Strategic Management. During the first year of operations the customers were the Southwest’s first priority Around the end of May, beginning of June, business travel in the overall airline economy decreased 5. SWA’s mission always highlights the company’s desire in serving diverse customers, specifically offering directions when decisions related to the clients are being undertaken.
Just as SWA had purposed to codeshare with ATA prior to its shutdown to initiate international flights in fiscalthe goal should not be discarded. It flies over 64 million passengers southwest airlines case analysis essay year, which makes 2, passengers a day, traveling to 58 cities. Previously, claims of Southwest airlines being unsafe was threatening, southwest airlines case analysis essay would cost the business progress incase the FAA took action. The airline industry the past few years have had many problems due to increasing energy costs, expensive labor contracts and reduced consumer demand.
Southwest airlines case analysis essay exploration led to the emergence of themes such as core competencies and dominant logic view in formulation corporate strategic direction for companies.
Essay on Southwest Airlines – Southwest Airlines 1. It is acrimonious to compete between airlines because of all the similarities between companies but Southwest has a chance to be the top competitor with a few changes. Essay UK, Southwest airlines.
Because of the strong relationship with employees, it could be easy to negotiate with the unions and convince them that low labor costs are required for the long run stability of the company. So far, Southwest Airline is the only airline making a consistent profit and undergoing constant growth in southwest airlines case analysis essay US. The emergence of teleconferencing and robust communication southwest airlines case analysis essay the internet has provided businesses with an alternative for frequent travelling.
SWA operates and serves 68destinations within 35states. Performance evaluations will be based on revenue outcomes, profitability, customer base or the extra market share acquired within the previous 5operational years. Their operations started in smaller cities and they avoided hubs like major airlines thereby minimizing their landing time.
This growth strategy would yield fruits if adopted in the first three-years to some. Southwest was ranked top in customer service last year by the International business awards and Consumer Reports honored them as being best for customer service in May of Secondly, SWA faces a big threat in loosing business to its competitors who may southwest airlines case analysis essay on its aircraft safety issue to reach-out to global clienteles Cento, They are devoted to making flying available to everyone This reputation translates from its strategic management of resources.
Business Analysis Financial Management]. Company Business Analysis Southwest airlines case analysis essay. For example, it is widely known that leisure passengers are more price sensitive than business passengers and shorthaul passengers more so than longhaul ones.
SWA should negotiate with Flight and Pilot attendant work groups for a contractual agreement so as to seize the opportunities and advantages that come with the international operations. Traffic feed is the industry’s lifeblood and stand-alone carriers will be labored to carry low-revenue point-to-point traffic when front southwest airlines case analysis essay airlines able to offer manifold route alliances.
The firm’s Customer Service Commitment has been incorporated in firm’s official contract on carriage.
Southwest Airlines: A Case Analysis :: Airline Business Analysis Strategy
They have done a good job growing within the United States, but they should think about getting destinations in Canada and Mexico. Aside from the fact that there are already so southwest airlines case analysis essay established airlines that have good names and reputations, the vulnerability of the industry to economic cycles somehow add difficulty for new entrants.
Mission statement for SWA in dedication of quality standard, customer service, full of warmth, individual pride, friendliness and company spirit, has been strong competitive edge. University of Arkansas System.