SWOT Analysis is among the measurement methods used to evaluate the feasibility of an enterprise venture in market appraisal processes. Companies portray fields of vulnerabilities and strengths in quantities that require empirical methods that offer visibility into the current state of an organization or concept, regardless of scale. As an advisory service for both new customers and the group management body, SWOT analysis works. Investors and management confirm, by their appraisal procedures, whether the business in question has stronger performance potential or needs new solutions to ensure its progress. The analysis of Southwest Airlines provides a categorical evaluation of the firm being a leading low-cost carrier within the US with networks and air routes to some of the remote areas locally. The paper shall analyze the strengths, weaknesses, opportunities and threats that the company may be facing in its current market situation considering different factors brought about by globalization of trade and growth of competitor airlines.
Response to question 1
SWOT analysis involves an organization identifying the internal strengths and weaknesses while also identifying the external opportunities and threats that may exist (Bertelsen, 2012). The organization chosen for analysis is Southwest Airlines, which is one of the major airlines in the world and has its headquarters in Dallas, Texas.
The strength of the organization explains what sets it apart from the rest and what makes it be competitive while maximizing on output and revenue. One of the major strengths of Southwest Airlines is that it is the worlds largest low-cost carrier implying that it may not be toppled in terms of the cost it charges on the flights. The airline has over 100 destinations in the United States as well as additional eight countries and therefore serves a greater majority of individuals travelling across the US (Southwest, 2017). As of 2014, the airline was the leading carrier of domestic passengers in the United States and this affirms her strength in the competitive airline industry (Southwest Airlines Co., 2016). The company has an able and well trained employee base which ensures that it stands out from the rest and that the customers have the best service quality.
Weaknesses of Southwest Airlines
The main weakness the airline faces remains that, it does not travel to many routes compared to other carriers. It is more of a domestic airline and as such cannot compete with the larger international airlines. It lacks global experience hence suffers the customers preference in terms of luxury and attachment.
Opportunities for Southwest Airlines
The airline is yet to cover all the routes across the United States and this is one of the opportunities it has to further assert authority as the major airline in US. Additionally, it can increase on the international destinations from eight to increase the global presence.
Threats for Southwest Airlines
The airline industry is competitive and there are numerous players offering similar or greater services compared to Southwest Airlines. There are other competitors such as Emirates and Qatar Airways among others and they provide stiff competition.
Response to question 2
Southwest Airlines has conquered the local US market and though it charges the lowest-carrier costs, the offer is only limited to the destinations it flies to, but there chances for expanding action into new territories. The firm is facing competition from other leading carriers such as Emirates Airways, Lufthansa and Qatar Airways and it may have to increase its global experience to be able to compete with these other airlines (Greenfield, 2014). In so doing, the new destinations especially will increase from eight to a greater number and may propel the airline company to be the best in the world. It may have to extend the low carrier charges to the new routes or it may have to remodel the business plan to accommodate the interests of all the customers.
Having a global branding ensures that it competes with the other large airlines.
The possibility for the airlines is the unimagined routes to fly to internationally as well as expansion of the local routes the airline group flies to and from. The expansion will imply additional resources in terms of manpower as well as adding new fleet of planes that flies to the newly established routes. Moreover, the planes added to the fleet must be of similar or greater quality compared to those of the competitor.
Bertelsen, B. (2012). Everything You Need to Know About SWOT Analysis. [Newmarket, Ont.]: Brain Mass Inc.
Greenfield, D. (2014). Competition and service quality: New evidence from the airline industry. Economics of Transportation, 3(Special Issue on Airlines and Airports), 80-89. doi:10.1016/j.ecotra.2013.12.005
Southwest Airlines Co. SWOT Analysis. (2016). Southwest Airlines Co. SWOT Analysis, 1-10.
Southwest. (2017). Retrieved from https://www.southwest.com