Southwest Airlines Internal Analysis
Executive Summary
Southwest Airlines is one of the most profitable airlines in the airline industry. During turbulent economic times Southwest has managed to continue strong revenue growth in a disastrous environment and has operated profitably for 39 consecutive years (Mintzmyer, 2012). Southwest Airlines has capitalized on the company’s strength of being the top low cost carrier by offering a simple and efficient business plan that prides itself on customer service. Southwest utilizes only the Boeing 737 to streamline their processes, and utilizes their award winning Southwest.com to drive ticket sales. Southwest has begun to capitalize on future market opportunities by purchasing AirTran airways and is now capable of not only domestic travel, but traversing into the international travel market as well. This purchase allows Southwest to combat one of the company’s primary threats, with that being the tumultuous economy the industry has faced. The opportunities gained by the purchase of Airtran will allow the company to being capitalizing on the international market, and thus helping reduce the economic strain created by the reduction of domestic travel. Southwest has positioned itself as the top performing domestic carrier in the United States; however there are still areas where the company should focus attention. Utilizing one type of aircraft has allowed the company to streamline many of the daily tasks, however this also place the company at the mercy of their supplier and some of the union members. Southwest also only markets their products through their own internal eticketing system Southwest.com. The company should consider expanding their offerings through outside vendors. Overall for the 39thconsecutive year, Southeast was profitable, earning $178 million in 2011 and was consistently named one of the top domestic airline carriers and one of the overall airline companies in the industry by a variety of surveying companies.
With major carriers
Southwest Airlines is one of the most profitable airlines in the airline industry. During turbulent economic times Southwest has managed to continue strong revenue growth in a disastrous environment and has operated profitably for 39 consecutive years (Mintzmyer, 2012). Southwest Airlines has capitalized on the company’s strength of being the top low cost carrier by offering a simple and efficient business plan that prides itself on customer service. Southwest utilizes only the Boeing 737 to streamline their processes, and utilizes their award winning Southwest.com to drive ticket sales. Southwest has begun to capitalize on future market opportunities by purchasing AirTran airways and is now capable of not only domestic travel, but traversing into the international travel market as well. This purchase allows Southwest to combat one of the company’s primary threats, with that being the tumultuous economy the industry has faced. The opportunities gained by the purchase of Airtran will allow the company to being capitalizing on the international market, and thus helping reduce the economic strain created by the reduction of domestic travel. Southwest has positioned itself as the top performing domestic carrier in the United States; however there are still areas where the company should focus attention. Utilizing one type of aircraft has allowed the company to streamline many of the daily tasks, however this also place the company at the mercy of their supplier and some of the union members. Southwest also only markets their products through their own internal eticketing system Southwest.com. The company should consider expanding their offerings through outside vendors. Overall for the 39thconsecutive year, Southeast was profitable, earning $178 million in 2011 and was consistently named one of the top domestic airline carriers and one of the overall airline companies in the industry by a variety of surveying companies.
With major carriers
References: Bukhamseen, A. (2012, April 17). Southwest Airlines SWOT Analysis. Retrieved October 19, 2012, from http://www.alaabukhamseen.com/2012/04/17/southwest-airlines-swot-analysis-2/ Feltner, M. (2012). Top five affordable domestic airlines for families. Retrieved October 19, 2012, from http://www.smartertravel.com/travel-advice/five-affordable-domestic-airlines.html?id=10229 Maxon, T. (2010, September 30). Report: Southwest Airlines carried most passengers in '09. Retrieved October 19, 2012, from http://www.dallasnews.com/business/headlines/20100329-Report-Southwest-Airlines-carried-most-3505.ece McIntyre, D. (2011, June 21). Southwest Remains No. 1 for Airline Customer Satisfaction. Retrieved October 19, 2012, from http://www.dailyfinance.com/2011/06/21/southwest-remains-no-1-for-airline-customer-satisfaction/ Mintzmyer, J. (2012, July 2). Southwest Airlines: Profit Potential on Weakening Oil. Retrieved October 19, 2012, from http://seekingalpha.com/article/697141-southwest-airlines-profit-potential-on-weakening-oil Smith, T. J. (2012). 40 Years of Profitable Service: A Case Study on Southwest Airlines and Target Pricing. Retrieved October 19, 2012, from http://www.wiglafjournal.com/pricing/2011/04/40-years-of-profitable-service-a-case-study-on-southwest-airlines-and-target-pricing/ Southwest Airlines Co. (2012). About Southwest. Retrieved October 19, 2012, from http://www.southwest.com/html/about-southwest/index.html Southwest Airlines Co. (2012). Fact Sheet. Retrieved October 19, 2012, from http://www.southwest.com/html/about-southwest/history/fact-sheet.html Tellez, T. (2012, March 12). Southwest Airlines SWOT Analysis. Retrieved October 19, 2012, from http://www.tamaratellezmba.com/blog/2012/03/20/southwest-airlines-swot-analysis/ U.S. Department Of Transportation (2011, March 22). 2010 Traffic Data for U.S Airlines and Foreign Airlines U.S. Flights: Total (BTS 17-11 ). Retrieved October 19, 2012, from Office of Public Affairs website: http://www.bts.gov/press_releases/2011/bts017_11/pdf/bts017_11.pdf