. Plan: The airline should do the cost benefit analysis before lowering the cost. . The company has planned to internationalize its business operations in 2014 by offering its passenger and logistic services to the worldwide customers. Further, the airline has great relationship with its employees, having the lowest employee turnover in the industry. Standardizedparts and reducedtrainingforthe maintenance crew resultsin animprovedbottomline. .
If this cost is effectively managed it can give great edge to an organizational objective. Threats: The threats always come from external environment. The Southwest Airlines is one of the leading organizatations in its industry. If both agree to the higher pay rates it will further affect the growth potential and profitability of this airline. Weakness This section is available only in the 'Complete Report' on purchase.
. These strategies are put together with the help of various types of analyses that give an organization an overall view of what they are facing. The other weakness of Southwest is its customer on-plane experience. The mission of Southwest Airlines is to provide highest quality of customer service at lowest price. Also the analysis should be done on how much price reduction would result in take the weakest competitor out from the industry.
The strategy is that the airline should make sure that it is taking full advantage of this medium to advertise its packages. The airline believes that in order to bring loyal customers who could come back to our airline again and again; we must provide them with the best service from all from our heart. It also has a record 84% load factor, which is an indication of the percentage of seats filled. Operational, Safety, and Health Regulation 1. Southwest serves as a low-fare air transportation in many states with over 20 million customers annually. There is some consideration that the airline business is a major contributor to greenhouse gases and therefore global warming, but as of yet the industry has not come under serious public pressure as it is generally viewed by the.
The other weakness of Southwest is its customer on-plane experience. Another area Southwest has no power over are airplane manufacturers. This represents an area that should be cultivated for future improvement and growth? Southwest Airlines has to build internal feedback mechanism directly from sales team on ground to counter these challenges. Due to its unique operating strategies, Southwest Airlines has been able to get an edge over other airlines and has managed to stay afloat while other sank during economic slowdown. The instability of gas prices could theoretically double the damage by dropping to a historic low and then spiking sharply by the time holiday travel season comes around Lloyd, 2009. The mission of southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride and Company Spirit Ruppel, 2012.
The core of the business is to provide low-fare and short-haul flight service to their customers through low cost operation. Apprehensions over Southwest to acquire larger market share prompted rivals to conspire with Fort Worth Congressman Jim Wright and block inter province flights from Love Field Airport. Examples of internal factors would be finances, manufacturing capabilities, and management abilities. In the next few years the company can leverage this opportunity by knowing its customer better and serving their needs using big data analytics. Files are delivered directly into your account within a few minutes of purchase. There are a numberof industryopportunitiesforSouthwest. The industry average is 40 minutes while at Southwest the average turnaround time is 15-20 minutes.
It has newer fleet of aircraft and has also adopted newer technology. Southwest Airlines is also the pioneer in using e-ticketing systems which also helps it in minimizing its costs of operations. As a resulttheyhave a highdependence onBoeing737s. The two biggest operating costs for an airline are the fuel costs and labor costs. Owing to the cost concern, Southwest put as many seats as possible in the planes and only single class seat, economic. Southwest Airlines started out as Air Southwest Co in 1967; serving only three local airport hubs in Texas. ConsumerTechonology A trendthat mayhurt SouthWestisthe increasingadvancedconsumertechnologyonflights.
Aside from its weaknesses, Southwest Airlines has also been keeping track of opportunities that currently exist in the market. . The workforce of Southwest Airlines works like a team which makes it one of the best employers in the United States. Significant strength Core Competencies Innovation? It has a strong fleet operation which carries more than 3,000 flights per day. This was Southwest Airlines most profitable route. There are also fair share of weaknesses which must be overcome in order to perform even better in the future and to improve where room for improvement is found. An additional benefitof onlyone classof airplane isthe reductionof maintenance costs.