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South West Case

In: Business and Management

Submitted By lotus1976
Words 1116
Pages 5
S.W.O.T. Analysis
Strengths
Southwest Airlines has several key strengths that make the company leader in the airline industry.
First and most important one is that the company was a low-cost leader. When the airline began operations in 1967, its strategy was focused on keeping cost low enough to enable Southwest to establish fares below the cost of driving a car over the same route. This has been a key to Southwest’s success through 2002.
In addition, Southwest also focused on providing a high level on-time service. From the very beginning, the company focused on short distant, frequent flights and the customers found their service very reliable and fast. By 2002, the company began to offer long distance flights, but focus was still on providing fast, on-time and reliable service.
Fast turnaround time of flights helped Southwest sell more seats in a shorter period of time. Southwest was also focused on being a fun airline for its customers and employees. Employees were encouraged to be creative when making required announcements to passengers. This helped Southwest to stand out as a fun airline and provide customers with a memorable experience.
Lastly, Southwest’s most important strength is their hiring process and the employees themselves. Southwest was featured as a top 5 employer in Forbes “Top 100 Companies to Work For” year after year. Southwest had a similar number of employees as its competitors, but Southwest’s employees had to work more efficiently, which created a large cost savings for Southwest. The airline knew what they wanted from their employees and their unique hiring efforts reflect that. As a result, Southwest’s turnover is well below that of their competitors.
Weaknesses
Despite its profitability, Southwest Airline`s business model currently has several weaknesses.
First one is its inability to penetrate large…...

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