Southwest

CASE: SOUTHWEST

Southwest Airlines is a low-cost domestic U.S. airline that primarily provides point-to-point, low-fare services. Founded in 1967 in Dallas, Texas; it started its first flights operations in 1971 with three 737 Boeing aircrafts serving Dallas, Houston and San Antonio. Nowadays, Southwest servers more that 64 destinations in 32 states, operates around 535 aircrafts, flies around 80 million passengers a year, more than 3,300 flights a day.

PROBLEM ANALYSIS (SWOT)

~STRENGTHS

• Competitive pricing is a vital element of Southwest Airlines’ overall success, as this keeps them in line with their rivals, if not above them.

• Riding high in the niche market in Air Transportation industry has helped boost Southwest Airlines and raised reputation and turnover

• Keeping costs lower than their competitors and keeping the cost advantages helps Southwest Airlines pass on some of the benefits to consumers.

• Southwest Airlines’ marketing strategy has proved to be effective, helping to raise profiles and profits and standing out as a major strength.

• Experienced employees are key to the success of Southwest Airlines helping to drive them forward with expertise and knowledge.

• Southwest Airlines’ reputation is strong and popular, meaning people view it with respect and believe in it.

• Being financially strong helps Southwest Airlines deal with any problems, ride any dip in profits and out perform their rivals.

• Southwest Airlines has a high percentage of the market share, meaning it is ahead of many competitors.

Development and innovation are high at Southwest Airlines with regard to their products/services, which is a sure strength in its overall performance.

• Net income increased 83 percent to $402 million in fiscal year 2003

• High capacity usage

• Revenues increase by 8 percent to 5.94 billion in fiscal year 2003

• Named the best low cost airline leader for the last three consecutive years

~WEAKNESSES

• The lack of...