southwest airlines swot analysis - situation anaylsis

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1、SituationAnalysisIndustryAnalysis·TrendsSouthwestAirlinesshinesaboveitscompetitorsastheindustryleaderinlowfareflights.Theystrivetogivetheircustomersthat(positivelyoutrageousservice)POSthattheyareknownsowellfor.SouthwestAirlinesdiscoveredanichemarketforairtravelerswhowantedaneasyandaffordablewaytotr

2、avel,Southwestfliesmakingiteasyforcustomerstotravelwithinthestatesconvenientlywithoutallthehasslesofamajorairportormanytransferflights.Southwestwasestablishedinthetimewheneconomyflightsweresteadilyincreasing,moreandmorefamilieswantedtotravelinstatebutcouldnotaffordthehighpricedseatsthatSouthwest’sc

3、ompetitors,Continental,AlaskaorUnitedoffered.ThiswasagreatopportunityforSouthwestbecausetheynowhadachancetoincreasetheirmarketsegmentationandcreateloyaltyfromthesecustomersandnewonesfromthevaluetheyoffer.ByprovidingopenseatingcoupledwithacorporatecultureofhappyemployeesandspontaneousattitudesSouthw

4、esthastrulytakenthetrendofeconomyflyingtothenextlevel.SouthwestAirlineshascomeupwithaplantoofferitscustomersnoinflightmeals,whichcutscostsforeveryone,afirstcomefirstserveseating,andoutstandingcustomerservicetomakethelowcostexperiencefeellikeyourflyingfirstclasstoyourdestination.In2002Southwestintro

5、duced250newticketdispensingkiosksthroughouttheairports,thegoalwiththesekioskswastoreducethetimespentinlineandimproveairportexperiencesinceSeptember112001.ThroughoutSouthwest’shistorytheonlyroadblockthattheyhaveencounteredwasin1978withTheAirlineDeregulationAct,whichredefinedtheindustrybyeliminatingt

6、heabilityoftheCivilAeronauticsBoard(CAB)tosetfares,allocateroutes,andcontrolentryandexitintomarkets.Companieshadnoabilitytochangefares,eveniftheircostswereincreasing.TheonlyattempttoraisepriceswasthroughapetitiontotheCABforafareraise.Arequestcommonlytookupto6weekstobeprocessed.ThiseffectedSouthwest

7、sincetheirbusinesstendstobeverycyclicalinnature.Incertainmonthspeoplearelikelytopaymorethaninothermonths.TofightthisnewlawSouthwestaveragedtheirpricesandwentforaslowandsteadygrowthbusinessmodel,understandin