Southwest Airlines

Case Analysis: Southwest Airlines

May 17, 2012

Introduction

Southwest Airlines is a major U.S. airline that primarily provides short haul, high frequency, point- to point, low fare service. Southwest was incorporated in Texas and commenced operations on June 18, 1971 with three Boeing 737 aircraft serving three Texas cities- Dallas, Houston, and San Antonio. Today Southwest operates nearly 400 Boeing 737 aircraft to 59 U.S. cities. Southwest has the lowest operating cost structure in the domestic airline industry and consistently offers the lowest and simplest fares. Southwest also has one of the best overall customer service records.

Southwest Airlines: Technological Factor

Southwest airlines running their service with update Boeing 737-200 air craft. Avoiding technological obsolesce they are offering innovating service to the customers. From the survey of “Texas Business” it is revealed that they are occupying 1st position in ticketing, luggage handling, hospitality and overall performance except offering meals to the passengers. So, we can say that they are adjusting with situation maintaining continuous changes.

Southwest Airlines: Supplier Factor

As in the written case no information is available regarding raw material, energy, money and HR supply, we can assume that they are getting low cost supply from different market. Their profit performance justifies this thing.

Suppliers include those who provide service/products necessary for Southwest Airlines to their business function. For Southwest Airlines, suppliers include mechanics (and other maintenance people), providers of fuel, food (the snacks that are offered). The suppliers do not have much bargaining power.

Southwest Airlines: Competitor Factor

There are some other air line companies also working in the same market. They are American airlines, Delta airlines, Continental airlines Braniff airlines, Eastern airlines and Texas International airlines as per survey of “Texas Business”. It has seen that...