SWOT ANALYSIS ON Southwest Airlines

[abhishreshthaa]

<H2>SWOT ANALYSIS ON Southwest Airlines</h2>

​

Southwest Airlines Co. (NYSE: LUV) is an American low-cost airline and the world's largest low-cost carrier. The airline has its headquarters on the grounds of Dallas Love Field in Dallas, Texas. Southwest is the largest airline in the world by number of passengers carried per year (as of 2009) Southwest maintains the fourth-largest passenger fleet of aircraft among all of the world's commercial airlines As of December 31, 2009, Southwest operates more than 3,200 flights daily.

Southwest Airlines has carried more passengers than any other U.S. airline since August 2006 for combined domestic and international passengers according to the U.S. Department of Transportation's Bureau of Transportation Statistics. Southwest Airlines is one of the world’s most profitable airlines, posting a profit for the 37th consecutive year in January 2010.

Southwest's successful business model involves flying multiple short, quick trips into the secondary (more efficient and less costly) airports of major markets, and using only one aircraft type, the Boeing 737.

Strengths

• Southwest Airlines is the low cost airlines because of its route management and low cost operations.

• Southwest airlines carried more customers than other US airlines.

• Third largest Airlines in the industry on basis of revenue and profits.

• Southwest operates more than 3500 flights daily.

• Better utilization of resources to reduce the cost of operations.

• Good financial position

• High market share and brand reputation.

• Better relations with customers and employees.

• Unique corporate culture

• Southwest.com is the largest airlines in terms of unique visitors.

• Southwest aggressively marketing its services on Internet.
Weaknesses

• Southwest Airlines not attract business class people because there are no bifurcation of seats such as business and economy class.

• It lacks of diversity in services such as freight and cargo. Majority of dependency on passenger revenues.

• Lack on international presence.

• Overbooking of tickets
Opportunities

• Expansion of services at International Level.

• Joint venture with other airlines.

• Rewards system for the frequent flyers to build good customer relations.

• Southwest airlines must come with the idea to make their customers feel secure.

• Online ticker reservation through mobile, Website, ATMs and other channels.

• Over 100 cities asked the southwest airlines to start the operations.
Threats

• Government regulations

• Fierce competition in the industry

• Sudden changes in the prices of Oil.

• After 9/11, security is one of the major challenges for the Airlines.

• Most of the airlines companies are imitating southwest strategies.

• Southwest airlines always adopted conservative strategies which may create problems in future if any new entrants in the industry come up with the fast pace marketing growth strategies.