Swot Analysis Southwest Airlines

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The airline also faces some human resource challenges it has fewer line supervisors, and this could have some very negative implications for the workforce (Centre For Aviation, 2014).

Opportunities

The southwest airlines can engage in partnership with other international airlines. Partnering with foreign airlines will be a great entry point to the international market, and the airline will establish its presence in the international market with ease (Centre For Aviation, 2014).

The airline can also consider extending its services so as to provide a better customer experience, where they will have leisure and even business class facilities where the passengers can pay more for good services. The company should also look for ways of applying the modern technologies so as to provide better services to the clients.

Threats

At first, the price of oil and gas is a major threat (Strengths of Southwest Airlines Swot Analysis, 2015). The oil prices are never stable, and since the fuel is a significant cost to the airline, the airline may experience the reduction in revenue (Strengths of Southwest Airlines Swot Analysis, 2015). Also, the cost of the security of the airline tends to increase annually, and this presents a serious threat to the company profitability. Other issues such as the decline in the economy pose a threat to the company. Due to reduced income, only a few people are interested in traveling for leisure.

Summary

It is important for the company to improve some of its strategies in order to respond to what could be the possible changes in their environment. Moreover, in line with their mission of providing the “highest quality of Customer Service”, we believe that it is just expected from them to expand and upgrade. They have already proven to be one of the best, so the issue now lies on sustaining it. And I believe that by advancing the operations of the company, Southwest Airlines being left behind will be far-fetched.

References

Boguslaski, C., Ito, H., & Lee, D. (2004). Entry patterns in the Southwest Airlines route system. Review of Industrial Organization, 25(3), 317-350.

Centre For Aviation. (2014, September). Southwest Airlines SWOT: Financial Strength is Mainstay, But Cost and Culture Challenges Loom Large.

Heskett, J. L., & Hallowell, R. H. (2015). Southwest Airlines: 1993 (A).

Liu, I. B. (2012, March 12). Southwest Airlines Co. SWOT Analysis.

Pettus, M. L. (2003). Growth from Chaos: Developing Your Firm's Resources to Achieve

Profitability Without Cost Cutting. New York: Greenwood Publishing Group.

Smith, G. (2004). An evaluation of the corporate culture of Southwest Airlines. Measuring Business Excellence, 8(4), 26-33.

Strengths of Southwest Airlines Swot Analysis. (2015). Retrieved August 8, 2015, from http://www.quality-assurance-solutions.com/southwest-airlines-swot-analysis.html