The concept originated in the United States, follow by Europe and subsequently to Asia. Filed Under: Business plans. The company has used strategies, which are cost effective. Southwest Airlines began in 1971. 2. However, the clients are given the best service available. In this regard, the company can reduce the effect of fuel prices by hedging their own oil purchases, and enhance better airline operations. With such an opportunity, the company can introduce its service to the international market. The vision and mission of Southwest Airlines speaks well of the company’s future and its employees. It currently has $3.3 billion in the form of cash and short term investments. Task 3 – 30 Marks Answer (in essay form) the following: It has been said that “talented people in possession of superior intellectual capacity are not only a resource that enable proficient strategy execution but also a prime source of competitive advantage”. Perhaps the most critical element of the successful low-fare airline business model is achieving significantly higher labor productivity. While the airline industry has suffered significant losses, Southwest Airlines have gained a significant market share. US Airways offers a first class product, and a very extensive route network including international destinations. Southwest Airlines has been a strong growth company over the last 35 years. This is an industry leading figure. Many regional Airlines are now following the low cost strategy of Southwest Airlines to capture their market as fast as possible. SWOT analysis is a strategic planning tool that can be used by Southwest Airlines managers to do a situational analysis of the company. We use cookies to give you the best experience possible. It is also known as a ‘discount airline’ compared with its large rivals in the industry. 3. The Southwest Airlines has opportunities which it can use as a way of developing the company. Here is the SWOT analysis of Southwest Airlines Co. which is an airlines company primarily based in the United States of America. Gary C. KellyChairman, President, and … So, more strategies should be introduced … It is a handy technique to analyze the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Southwest Airlines is … With this strong strategy, Southwest Airlines has obtained a competitive advantage over its rivals. The success of the company includes integration of all the forces, which build up the company. Southwest Airline Company has so far had a remarkable financial growth. Low-cost carriers pose a serious threat to traditional “full service” airlines, since the high cost structure of full-service carriers prevents them from competing effectively on price – the most important factor among most consumers when selecting a carrier. This is a cost that can affect all other controlling costs of the company as it is a necessity in the business. It is effectively used in building strategies for the organization to maintain its competitiveness in the market. For holiday destinations, low cost airlines also compete with seat-only charter sales. I will end the paper by highlighting my opinion on the Southwest Airlines’ vision and mission statement. Proven Business Strategy Southwest believes in a sustainable future where there will be a balance in our business model between Shareholders, Employees, Customers, and other Stakeholders. As an airline servicing company in today’s market, the threats are worth noting. Southwest Airlines applied a strategy that facilitated its growth in the airline industry. there are no luxuries that are given to the traveller while on board. Southwest Airlines Company is the leader in the management of costs. 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