Southwest Airlines SWOT Analysis
Strengths
• Southwest Airlines is the low cost airlines because of its route management and low cost operations.
• Southwest airlines carried more customers than other US airlines.
• Third largest Airlines in the industry on basis of revenue and profits.
• Southwest operates more than 3500 flights daily.
• Better utilization of resources to reduce the cost of operations.
• Good financial position
• High market share and brand reputation.
• Better relations with customers and employees.
• Unique corporate culture
• Southwest.com is the largest airlines in terms of unique visitors.
• Southwest aggressively marketing its services on Internet.
Weaknesses
• Southwest Airlines not attract business class people because there are no bifurcation of seats such as business and economy class.
• It lacks of diversity in services such as freight and cargo. Majority of dependency on passenger revenues.
• Lack on international presence.
• Overbooking of tickets
Opportunities
• Expansion of services at International Level.
• Joint venture with other airlines.
• Rewards system for the frequent flyers to build good customer relations.
• Southwest airlines must come with the idea to make their customers feel secure.
• Online ticker reservation through mobile, Website, ATMs and other channels.
• Over 100 cities asked the southwest airlines to start the operations.
Threats
• Government regulations
• Fierce competition in the industry
• Sudden changes in the prices of Oil.
• After 9/11, security is one of the major challenges for the Airlines.
• Most of the airlines companies are imitating southwest strategies.
• Southwest airlines always adopted conservative strategies which may create problems in future if any new entrants in the industry come up with the fast pace marketing growth strategies.
• Cost of Airlines security is increasing due to terrorism.
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